Straight Talk on Flippa: Read This Before You Sell Your Store

Are you looking to sell your website or online store? Flippa is a very popular platform for entrepreneurs and business owners looking for a profitable exit or a new business. But, is it the right broker for your needs? 

I have personally used the Flippa platform to buy and sell websites a handful of times. Here, I’ll share my honest insights about their system (based on happy and not-so-happy endings), the benefits as I see them, and how to successfully buy or sell a business. Before I wrap up, I’ll give you a quick look at Flippa’s top competitors so you can weigh some other options.  

Whether you’re looking to start a new online venture or simply want to get out of your business, Flippa might be the right place to turn. Let’s dive in and see how this platform can help you… or find out if you should look elsewhere.

Now, let’s get to it! 

The Value of Buying and Selling Websites 

Digital assets have a lot in common with real estate. If you maintain your properties, they will grow in value over time. Buying or selling websites can be a great way for you to monetize your online business — it can be a quick and cost-effective way to establish an online presence or expand into a new market. 

Selling a website can be a way for you to profit from online assets or recoup investments. It can also be a way for you to divest from a particular market to focus your resources on other areas.

Buying an existing website can save time and resources that would otherwise be spent on building a new website from scratch.

According to an April 2022 report by Empire Flippers (one of Flippa’s competitors), the average net profit margin for a website sold in 2021 was 22%. So, on average, the seller of a website made a profit of 22% of the sale price. The same report found that the average length of time that a website was owned before being sold was 2.6 years — this seems to me like enough time to establish a site and decide whether it’s a project you want to continue working on.

Together, these statistics highlight that there is profit to be made in the website flipping business. 

For more, see How to Make Money on Shopify: 42 Unique Business Ideas

What is Flippa? 

Flippa is a marketplace that allows users to buy and sell websites, online businesses, and domain names. It is primarily geared towards entrepreneurs and small business owners who are looking to buy or sell websites as a way to start or grow their online presence. 

Flippa offers a wide range of websites for sale, including established businesses, e-commerce stores, and new startups. It also provides tools and resources to help users evaluate websites and make informed purchasing decisions. Flippa is a trusted platform with a secure payment system and has facilitated the successful sale of thousands of websites.

According to Flippa’s website, as of 2021, the platform has facilitated the sale of over $400 million worth of websites, online businesses, and domain names. Flippa claims to have a success rate of over 90% for completed transactions and states that its users have collectively generated over $1 billion in revenue through the platform. 

These numbers show the influential role that Flippa plays in the websites and online business trade. Keep in mind that we haven’t touched on the global sales volume of websites across all brokerage options (this number would be difficult if not impossible to compute since many sales take place privately, outside of the known platforms and brokerage firms). 

The Benefits of Using Flippa

There are several benefits to using Flippa to buy or sell a website or domain:

• High-traffic marketplace – Flippa is a large online marketplace with a wide selection of websites and domains available for sale. This gives buyers a greater variety of options to choose from and allows sellers to reach a larger audience of potential buyers.
• Professional buyers and sellers – The platform attracts professional buyers and sellers who are interested in making serious investments in websites and domains. This means that you can expect to see a higher level of professionalism and due diligence from buyers and sellers on the platform.
• Security and protection – This online brokering system provides a secure escrow service to protect both buyers and sellers during the transaction process. This helps to ensure that both parties are protected and that the sale is completed smoothly.
• Free valuation tools – Flippa offers a variety of tools and resources to help buyers and sellers determine the value of websites and domains. This includes the “Price My Website” tool, which can help sellers estimate a fair price for their website based on various factors.
• Knowledgeable support – The platform offers support and resources to help buyers and sellers navigate the process of buying or selling a website or domain. This includes a team of experts who are available to answer questions and provide guidance throughout the process.

Overall, Flippa is a convenient and secure platform for buying or selling websites and domains and offers a range of tools and resources to help make the process as smooth as possible. 

How Does Flippa Work? 

In a nutshell, Flippa is a digital broker or middleman between buyers and sellers of digital assets. In some ways, it’s like an eBay that only offers online business — some of them are already profitable and some not so much. 

While it’s best to put in the work and promote Flippa listings, simply adding an asset to the site can potentially get it in front of thousands of eyeballs that might be interested in acquiring it. 

How to Use Flippa to Sell Your Website, Step-by-Step

Before you sell your website on Flippa, I recommend you get a site valuation to find out how much your store is worth (in their eyes, anyway). Their valuation tool is free and takes only a couple of minutes to complete. The automated system will email you the results, and then guide you through the selling process if you decide to move forward. 

Here’s what you can expect, in terms of the steps to exit your website using this platform. 

1. Create an account: First, you’ll need to create a Flippa account by visiting the website and clicking on the “Sign Up” button. You’ll need to provide some basic information, such as your name and email address, and choose a username and password.
2. Prepare your website for sale: Before you list your website on Flippa, it’s important to make sure it is in the best possible condition for potential buyers. This might involve updating the content, improving the design, and fixing any technical issues. You should also gather any documentation or evidence of the website’s performance, such as traffic statistics and revenue figures.
3. List your website: Once you’re ready to list your website, go to the Flippa homepage and click on the “Sell a Website” button. This will take you to the listing form, where you’ll need to provide detailed information about your website, including its domain name, content, traffic, and revenue. You’ll also need to upload some photos or screenshots to help showcase your website.
4. Set your sale price: When setting the sale price for your website, it’s important to consider factors such as its value, growth potential, and any unique features or benefits it offers. Flippa provides a tool called the “Price My Website” tool that can help you estimate a fair price for your website based on these factors.
5. Promote your listing: Once your listing is live on Flippa, it’s important to promote it to potential buyers. You can do this by sharing the listing on social media and other online platforms, or by reaching out to interested buyers directly through Flippa’s messaging system.
6. Review offers and negotiate: As potential buyers express interest in your website, you’ll receive offers through Flippa’s platform. You can review these offers and negotiate with the buyers to reach an agreement on the sale price and terms.
7. Complete the sale: Once you’ve reached an agreement with a buyer and all necessary paperwork has been completed, you can complete the sale and transfer ownership of the website. Flippa provides a secure escrow service to help facilitate the sale and ensure that both parties are protected.

When exiting your website on Flippa, it’s important to include all of the necessary source files and assets, such as the domain and any other related materials. The “Site Established Date” should be the date when the site was published in its current form, rather than the age of the domain. 

Additionally, your website must not contain any adult content or promote the sale of weapons, imitation weapons, or weapon accessories. It’s also important to ensure that the store complies with copyright and trademark laws, and is not breaking any criminal laws.

Tips for a Successful Exit

Simply following the steps above will get your store onto the marketplace and hopefully sold for a satisfactory price. And, if you’re just wanting a quick exit, this will suffice. But, there are some tactics you should implement to get the most value from your listing.

If you want to achieve maximum profit, you should follow the advice here: 

• Use high-quality photos and videos to showcase your website – This will help potential buyers get a good understanding of what they are purchasing. An aesthetic appeal has a major impact on the way onlookers perceive a business. If you haven’t heard of the GoFullPage free Chrome extension, look it up. You can take full-page screenshots in seconds, which is a must-have for website listings. 
• Be honest and transparent about your financial performance – Potential buyers will want to know how well your website is doing. So, be sure to provide accurate information about your site’s sales, traffic, and other important metrics. If you use advertising, say so. Many of the buyers on the platform are looking for assets that they will market and advertise in new ways. Not only are they looking for great opportunities — they’re looking for holes in processes and potential areas for improvement. 
• Set a realistic price – It’s crucial to price your store appropriately to attract buyers. Consider factors such as the store’s revenue, expenses, and growth potential when determining the asking price. According to Forbes, it’s standard to list your store 24 to 36X the monthly revenue. However, service-based businesses and those that require a lot of hands-on maintenance might go for less. 
• Write a clear and concise description – A thorough and easy-to-understand description will help potential buyers see the value of your store and why it would be a good investment for them, and it will weed out buyers who would be likely to be unsatisfied (this is a good thing, believe me). Flippa does a pretty good job of guiding sellers on listing descriptions. But, if you’re a serious seller with a profitable asset, it might be worth hiring a writer to help you here. 
• Respond quickly and thoroughly to potential buyers – It’s important to answer any questions or concerns that potential buyers may have in a timely and professional manner. Most of our readers here are online sellers, so speak to your buyers as you would online store customers. This will keep people on the hook and shows how helpful you are likely to be if a transaction is made. 
• Follow Flippa’s guidelines – Make sure to follow Flippa’s selling guidelines to avoid any roadblocks during the process — they have a zero-tolerance policy and will likely ban you from selling if you violate their terms of use. Generally speaking, you must have the legal right to sell any assets listed and provide proof of revenue, income streams, and any advertising to your site that influences website traffic. Really, just don’t try to be a swindler, and you’ll be fine on this front. 

In a nutshell, be honest and descriptive for the best-selling experience on Flippa. 

What Do Buyers Look for on Flippa?

Many buyers come to Flippa looking for an investment that they can grow and profit from. Apart from specific types of websites in certain niches, people look for a range of business features. 

There are several specific facets of a website that a buyer will look for when considering purchasing the platform:

1. Revenue and profitability – It’s important to understand how much the website is earning and whether it is profitable. Buyers will look for information about the website’s revenue, expenses, and profitability.
2. Website traffic – Look at the website’s traffic to get a sense of how popular it is and how much potential it has for growth.
3. Social media following – Brands with lots of active social media followers are more valuable than those without. Just make sure any followers are real and not pumped up just for the sale (if this is the case, it’s seriously better to scrap these accounts and start over). 
4. Niche – Consider whether the website’s niche is a good fit for their interests and expertise.
5. Domain age and history – An older domain may have more authority and trust with search engines, which can be beneficial for SEO. However, it’s also important to consider any potential issues or negative history associated with the domain — harmful links, etc.
6. User experience – Buyers will check out the website’s design and user experience. Does the branding look professional? Is it easy to navigate? 
7. Content – The quality and quantity of the website’s content will be evaluated to see if it is useful and valuable to its audience. A buyer might request access to Google Search Console or Google Analytics to get deeper insights about where traffic really comes from. 
8. Technical issues – Buyers will usually browse to check for any technical issues or problems with the website that may need to be addressed.
9. Legal and compliance issues – It’s important to ensure that a website complies with all relevant laws and regulations. If it’s not, what would it take to remedy any problems — if you know these details, include them in your listing? 

By considering these factors, a buyer can get a clear understanding of the website’s value and whether it would be a good investment. Keep in mind that not everything has to check all of the boxes. Many serious buyers on the Flippa platform have a plan in place to address areas for improvement or fix what’s broken. 

So, you don’t need to worry about making everything perfect — just spruce things up and give your asset some curb appeal. 

Introducing Flippa Invest

Flippa Invest is an unreleased feature of the Flippa platform that will allow users to invest in pre-vetted websites and online businesses that are listed for sale on the platform. This can be a good opportunity for investors to potentially earn passive income through the ownership of a website or online business. 

Note: Investing in websites and online businesses carries risks and it is important to thoroughly research any potential investments and understand the potential risks and rewards before making a decision.

For current website owners, adding your store to the Invest marketplace is a new alternative to VC funding, Angel investing, or private investors. It is a new way to raise capital for your business. But, you must have an exit strategy. This means that once your business reaches the goal you hope to achieve, you need to be ready to sell. 

While investors don’t necessarily help with the operational aspects of your business, they expect a return from their investment. 

What Are The Downsides of Flippa? 

Before you start on any path, you need to know the pros and cons. And, as with all decisions in business, there are a few potential downsides to using Flippa that you should consider before selling on the platform. 

1. Steep Fees

Flippa charges fees to both buyers and sellers. Buyers are charged a 10% fee on the purchase price, while sellers are charged a fee based on the sale price of their website or online business. These fees can add up quickly and can be a significant cost for buyers and sellers.

So, before you list your site, get a clear picture of what it will cost. Once you have an accurate idea of the fees you can expect to pay, then you can set your pricing accordingly. 

2. Limitations on Pricing

You may not be allowed to list your website, domain, or app for the price you want. Flippa has standards in place that limit listing prices. This aspect is often a turn-off for sellers and leads some to other brokers. 

While this can be a pain, it’s important to note that the platform’s pricing guidelines are based on years of historical data. Essentially, the platform wants sellers to have realistic expectations to ensure that listings will actually sell. 

3. Risk of Scammers

Almost all online transactions come with the risk of fraud — Flippa is not immune. While there are scam prevention measures in place, this is almost impossible to avoid. If a deceitful buyer does promise to purchase your store, Flippa may end up issuing a refund before the funds are distributed to you. 

So, while buyers research your business, you should be researching potential buyers before you allow just anyone to bid or make an offer on your site. Some brokering services do offer to carefully vet all bidders or work within a network of trusted buyers (Flippa is not one of them).  

4. Timing of Escrow Funds Release

While neither PayPal nor Escrow.com is required by Flippa, most transactions take place on one of these platforms. In the case of either, it can take time to receive funds after the buyer sends them. In the meantime, Flippa, and the online payment processor will do their due diligence to ensure that all files have been transferred as agreed. As you can guess, this may take longer than you expect. 

There isn’t really a great way around this issue when selling online. Sellers with most website brokering platforms have the same complaint. If this is a deal-breaker for you, then you might want to go with a private broker who can guarantee that you will receive your funds right away. 

Flippa Competitor Overview

Below are Some of Flippa’s competitors in the website broker marketplace:

Empire Flippers

Empire Flippers is a platform that allows users to buy and sell websites and online businesses. The company was founded in 2013 and has since become a leading player in the online marketplace space. Empire Flippers offers a wide range of services to buyers and sellers, including brokerage, robust valuation tools, and due diligence services. 

For sellers, Empire Flippers charges a success fee based on the sale price of the website or online business. The success fee ranges from 10% to 15% depending on the sale price, with lower fees for higher sale prices. In addition to the success fee, sellers may also be charged a listing fee and a payment processing fee.

For buyers, Empire Flippers charges a 10% success fee on the purchase price of the website or online business. In addition to the success fee, buyers may also be charged a payment processing fee.

Empire Flippers is known for its rigorous vetting process. There’s not much that slips past these guys. 

Recommended: Empire Flippers: The Gold Standard for Online Business Brokers

MicroAcquire

MicroAcquire (now known as acquire.com) is a platform that allows users to buy and sell small online businesses and software products. The company was founded in 2015 and has grown to be the go-to for apps and software business acquisitions. MicroAcquire offers a range of services to buyers and sellers, including brokerage, valuation, and due diligence services. The platform caters to a wide range of businesses, including e-commerce, content, and affiliate websites, as well as software products. 

For sellers, MicroAcquire charges a success fee based on the sale price of the online business or software product. The success fee ranges from 8% to 15% depending on the sale price, with lower fees for higher sale prices. In addition to the success fee, sellers may also be charged a listing fee and a payment processing fee.

For buyers, MicroAcquire does not charge a success fee. However, buyers may be charged a payment processing fee. Certain features are limited under the free pricing tier, and serious acquirers will pay $380 or $780 per year to take advantage of everything the platform offers. 

MicroAcquire is known for its easy-to-use platform and its focus on SaaS. 

Sedo

Sedo is a platform that allows users to buy and sell domain names. The company was founded in 2001 and has since become a leading player in the domain name marketplace. Sedo offers a range of services to buyers and sellers, including brokerage, valuation, and parking services. The platform caters to a wide range of domain names, including generic, branded, and keyword-rich domains. 

For sellers, Sedo charges a success fee based on the sale price of the domain name. The success fee ranges from 10% to 15% depending on the sale price, with lower fees for higher sale prices. In addition to the success fee, sellers may also be charged a listing fee and a payment processing fee.

For buyers, Sedo charges a 10% success fee on the purchase price of the domain name. In addition to the success fee, buyers may also be charged a payment processing fee.

Sedo is known for its simple user interface — Sedo is not a good fit for sellers who want to exit an entire website or business, as the brand’s focus is on domain names. 

Investors Club

Investors Club, launched in 2020, is a members-only site for those serious about buying and selling online businesses. Known for not charging any listing fees, they keep things straightforward with a flat 7% success fee when a sale is made.

This members-only setup isn’t just about exclusivity; it ensures every listing and member is thoroughly vetted to maintain high-quality standards and serious prospects only.

Focused primarily on content sites, Investors Club steers clear of SaaS businesses, offering a more niche selection for specific buyers and sellers. They support sellers every step of the way with free escrow services, legal documentation, and help with migration—pretty much taking the headache out of online business transactions.

There’s also a premium membership for anyone looking to get early access to listings and more detailed due diligence tools to take a deeper dive into potential investments.

If you’re interested in skipping the tire-kickers and focusing on quality online business deals, Investors Club might just be your go-to platform.

Frequently Asked Questions

Final Thoughts

Before we wrap up, know that I am not a legal or financial professional. Before you make any investment or exit or purchase a business, I always recommend that you consult with an attorney and a CPA. Everything I share here is based on my own limited experience with buying and selling online businesses.  

The information here is meant to help you decide whether Flippa is the best platform for you to make a profitable exit from your website or online store. 

If you’ve made it this far, and you’re still interested in selling on the platform, get your free website valuation from Flippa today.