If you are looking to buy or sell domain names or a website but don’t know where to start, you have come to the correct place.
In this article, I am going to review Flippa.com- a marketplace where you can buy and sell web properties easily.
How does Flippa Marketplace work?
Flippa is a platform where buyers and sellers meet to buy or sell their digital assets.
Here, the seller lists their domain name or website for auction, which he/she wants to sell on this platform.
Sellers can sell things through a Premium listing or classified auction.
A premium listing is expensive; it cost around $250, but it does have a lot of features like Home Page visibility, Newsletter promotion, Auction list gets highlighted, etc. which gives good exposure and views to the listed web property.
Normal domain listing costs $10 and $49 for established websites.
We always suggest you get a Premium listing and boost your auction with various other promotional methods available in flippa.com.
If a Buyer likes your web property, he/she will bid on your listing, and it crosses the reserve price (set by seller), the buyer won the auction.
Further, they will pay money via Flippa escrow or Escrow.com, and thereafter seller will transfer the web property and deal done!
This is how the flippa marketplace works.
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Important Points to keep in mind:-
There are some main points which seem to be unimportant, but they must be taken seriously.
While signup, your name, email, phone number, and other personal information must be correct and clear.
Administration and buyers/sellers have access to your information, so keep it up-to-date.
Before joining Filippa, you must be well informed about payment methods, the newsletters, fees, promotional upgrades, etc.
Before transferring any asset or business via Flippa, you have a piece of good knowledge about how transactions are conducted on it.
You must carefully read its terms & conditions and make sure you agree to all before you decide to buy or sell via Flippa.
Learning about Reserve price is very important; otherwise, you might sell at a price that doesn’t suit you.
Go to its listing and auction that are similar to your business and assets, and examine the type of information and take your time to create your listing.
Once your listing is live, you won’t be able to change. Must have a back-up plan for traffic & revenue plan and conduct adequate research before buying/selling any listing.
Must get full knowledge about how the market works and how business is conducted on Flippa before bidding/listing.
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How does Flippa auction works?
The seller has to mention a minimum bidding price or a minimum offering price in order to start the auction. The auction can last for 3 or 30 days, but classifieds have no time limit.
Once the web property is listed on auction, the buyers start bidding.
For each buyer, the seller has to approve their bids if your web property is good enough then it’s quite exciting to watch the bidding war from many interested buyers.
To bid in any auction buyer must have an acceptance from the seller. At the end of the auction, the buyer who placed the highest bid (equal to or higher than reserve price) will win the auction.
Then the transfer process starts.
First, the buyer will pay for the auction. The available payment methods are PayPal, Flippa Escrow, or Escrow.com.
Then, the funds will be Hold in Escrow, and after that, the seller transfers the ownership of the asset, and after that, the buyer releases the payment.
Flippa does not play any role in the transfer of assets between buyers and sellers, but it can help or assist both parties in case they face any problem relating to listing or transactions.
Note: Reserved prices are applied only to the properties sold at public auction on Flippa
The success fees depend on the sale price of the web property sold for.
If your web property sold between $1-$499k, then the Sucess fess is 10% of the sale price.
Whereas, if it sold between $500k-1 million, then success fees are 7.5%
Non Disclosure Agreement
Under NDA, the listed auction is made confidential. You have to strictly follow the Flippa content policy.
For NDA listing, the buyer needs to send a request to the seller in order to view the listing.
The seller can accept or decline the buyer’s request to view the listing. Most of the NDA is done to those websites where the revenue is very high.
Always read flippa’s policy before proceeding further.
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How do offers and bids work?
Its a platform for both auction and classified sales. The most important thing is to select the right type of sale for your listing.
- In classified, there is a list of web properties that the seller uploads, buyers make an offer to purchase these assets or businesses.
- In an auction, buyers make a bid on the listed assets or businesses.
How Private offers (classifieds) work?
There are two types of offers: Private or public. You can check these offers by Log in to “My Account,” then click on “My Listing” and then on “Pending Offers.”
In the case of a private offer, the buyer makes an offer and then clicks on the “Place Offer button.”
After that, it will notify the seller about the offer. The seller reserve rights to reject or counter any offer of his choice.
So, before placing an offer, make sure your offer worth it, or else the seller will simply reject it.
After accepting the offer, the seller ends the sale and commits to selling the property to that buyer.
If the seller didn’t reject or accept any offer within 72 hours of receiving it, Flippa would automatically reject it.
How Public offers (auction) works?
In the case of the auction, you can see the selling price on the listing page.
If you are interested in buying any of the listed assets, enter the maximum amount you can pay for it. You need approval from the buyer before placing any bid.
After you get approval from the seller, its automatic bidding system will increment each time you are outbid, up to your maximum bid.
Still, you can control your bid and decide how much you can pay. If your bid is under sellers reserve, Flippa will bid automatically on your behalf and notify you that the maximum bid is under the reserve.
Who can see the maximum biding amount?
The biding amount of buyers is hidden; you can only see the maximum amount you are biding on the listing’s page.
Is a seller allowed to remove the bid he accepted?
No, the seller has no right to remove a bid after accepting it. He can only remove the user’s bid preference; this will only stop the user from bidding further.
In the case of two same amounts of bids
In this case, first come first serve policy will be applied, even if the seller accepts the pending bidders in different orders.
The first bid placed will be accepted, and the second will be notified they have outbid.
Even if multiple bids for the same amount accepted, the first among the list will be approved.
What is BIN?
In the case of the public auction, there is an option of BIN (Buy It Now), it enables a listing to sell immediately. Commonly a seller sets a desired asking price for immediate purchase.
If a buyer offers BIN price, the seller had the right to accept or reject the offer.
In case of acceptance by the seller, the buyer can instantly buy the listing.
This ends the auction without reaching over the reserve. In these circumstances, the seller can make an offer to anyone who is part of the auction or was watching the listing.
Note- BIN price is generally higher as it gives an opportunity to the buyer to buy directly without bidding war and thus premium price.
If the auction ends without any sale, the seller can re-launch their listing. You have to pay the listing fee for listing again because relisting is like creating a new listing.
If you do not want to sell your listing via auction Flippa also offers private sales(classifieds).
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I have made an offer what do I do?
Well, it’s an interesting thing when you receive an offer for your classifieds.
Still, you will need to fulfil certain other formalities before you finalize the sale.
- Make sure that the buyer has no more questions, and he has executed all rightful diligence.
- For a secure deal, make sure you communicate well with the buyer and have proper asset transfer.
Before selling your listing, you must communicate with the buyer. The seller has the right to accept or reject any offer.
When you finalize an offer, commit to the buyer and end your sale. Then the due-diligence process will start; time taken for this process depends on the complexity of your business.
In order to make a listing, you need to have all your documentation ready and intact. The buyer must have easy access to all key documents.
When the buyer is satisfied by the due-diligence process, he will ask for a contract of sale document.
Flippa can guide you with the transferring of funds and a contract of sale.
Flippa’s professional team can help guide you with the final stages of the sales process.
They also offer a template sales agreement if you want. Still, they recommend you bring your own legal advice for the final contract sale.
What is a Pre-authorization Charge?
Charges that are charged before a bid or an offer placed for a classified listing is known as Pre-authorization.
Flippa also applies a charge when you make a bid or an offer in relation to a listing.
Instead of charging the fund, you can set a brief hold on these funds. You will have permission to release these funds within 14 working days.
This limit can go up to 30 days; however, this depends on bank financial institutions. Flippa always charges on the pre-authorization charges. These charges are as follow:
$5 for bids/offers over $200
$500 for bids/offers over $5000
These are a one-time pre-authorization amount based on the limit.
Once you pay this amount, you are legible to bid at that level permanently, and you do not have to pay again for bidding.
Can the seller sell someone who is not biding in the auction?
The simple answer is “NO”; the seller does not have the permission. The seller can discuss with the interested party through the Flippa discussion area before placing an auction as bids.
Secondly, they do not have the permission to accept any auction outside the auction listing.
There is a log for all the bids and discussions. It is important to avoid problems that might arise at a later date.
Flippa won’t be able to assist you properly if you engage any offers out of auction process. The Bidder placing the highest bid on the auctions gets it.
Some times the auction does not see bids over the reserve; in this case, Flippa offers seller to negotiate with any post-auction via “Post Auction Negotiation.” Both buyer and seller can receive or send offers.
What does it mean when a bid is pending?
Unless or until the seller accepts the biding option, “Automatically,” all items on Flippa listing will be operated manually. This option automatically accepts bids from most bidders.
Even if you use this option in some cases, you have to work manually, especially with the buyers who are new to Flippa.
If the seller does not approve the bid within 72 hours, the system would automatically reject it.
Therefore, if a buyer is serious about something, he or she must send a private message to show their real interest as a buyer.
How can I manage/reject/accept bids in my auction?
The seller has full authority whether he/she wants to accept or reject any bid.
- You can accept or reject any bid in the “Pending bids” section.
- It is present underneath your profile name.
You will find the Pending bid open underneath your profile name. Scroll down on it to see the pending bids. Buyers bid on your auction in this option, here you accept or reject a buyer.
The buyer cannot bid on an auction unless he gets approval from the seller. The buyer can only bid on the listing after getting approval from the buyer.
After searching, if the seller does not want to sell his listing to the buyer, he has the right to reject it. Keep one thing in mind once you rejected a bidder; you won’t be able to accept him again.
So before rejecting any bid, spend some time on Bidder’s background.
Pending bids can last for only three days. So have to decide within three working days; otherwise, the bid will be rejected automatically.
What is proxy bidding?
Why Flippa use this biding, and what does it mean? It’s a question that people ask frequently.
It is an automatic biding where you set a maximum amount.
Proxy bidding is an automatic system where you authorize the platform to bid on your behalf.
You set a maximum amount on which Flippa can bid automatically. Flippa system will automatically start biding once you place a bid.
This is the increment system Flippa will follow:
- If the Current bid price or starting price under $1000, then the platform required $5 increment
- And if the current bid is under $10,000, then $50 increment per bid and so on.
In this system, the biding process happens real quick. The biding price can go up in no time.
Can I edit auction details during a live auction?
It is possible to edit certain areas; however, there are some fields that you cannot edit.
For instance, you cannot edit “Listing description,” “Title,” and “URL,” and among other fields.
For established websites, you cannot change or edit the “Revenue” and “Traffic” stats.
While in a live auction, you can edit fields like “Opening bid,” Reserve price and Buy It Now price.” Once you finalize the reserve price, you cannot change it.
In case of any serious problem, you must contact the Customer Success team.
Flippa is a great platform if you’re looking to buy/sell web properties. You can make a good profit by flipping domain names. I personally made over $10,000 USD in profit in flipping domain names.
I am a flippa user for over six years. If you want to make a handsome profit, build a good portfolio, stay in touch with your old buyers, and contact them whenever you list a new property.
This will increase the chance of selling that web-property.
So, did you like my honest Flippa Review?
Let me know if you have any queries related to it.