Before I begin my Flippa analysis I’d like to inform you that there was an update: since writing this piece, Flippa has come back to me, as well as its CEO, Blake Flippa, Blake had a statement:

Flippa has seen more than $250 million in sales on its website and we have an NPS of 80. Although it’s not perfect, this is a remarkable amount for a marketplace or platform with our size. We recognize that, like any other marketplace we are held to an obligation to make sure that our community is safe . We will work to improve this. However, it must be noted that it’s extremely rare to find fraud on the marketplace. Should our users suspect that a scam may be taking place We ask them to contact Support via Support@Flippa.com immediately.

I also did an interview with Blake who explained the work Flippa has been doing in order to ward off fraudsters and offered some great suggestions for due diligence. You can listen to the podcast here.

 

I’m also of the opinion that the article is a bit too harsh about Flippa (simply since I’m angry about this incident). I’m not convinced that Flippa is a bad company, especially when I experienced my first major deal on Flippa (I went over the entire story on the podcast) But I strongly suggest that you take extra care when purchasing a website (don’t be too concerned in the event that you sell it). I hope you enjoy the article.

 

Like many other marketers on the internet I’m into the business of buying and selling sites. It’s like taking prescription pharmaceuticals for the majority of marketers online and I’m not an exception.

 

Let me tell you the truth.

If you’re looking to buy a site online, Flippa is one of the worst websites you can go to and yes I am in conversation with you, prospective buyers.

Flippa is a low-end marketplace for business owners who own websites. It’s an excellent option to sell your website If you’re not afraid of dealing with lots and tire kickers. I don’t suggest anyone invest in a website through Flippa however. There are more scams on the internet.

My Flippa review Today’s review is targeted at those who have an looking to purchase a site through Flippa. If you are looking to sell your website, it could be that Flippa remains a great option since they have an enormous pool of customers and visitors.

But, I’d suggest not to waste your time with Flippa If you’re considering buying a site.

Flippa Review: Scams Websites With Fake Promises

One of my favorite past time pastimes is to visit websites marketplaces for brokers and look through their most recent listings. I was doing this on a fine day after I came across the following advertisement on Flippa:

This seller had a website for Dropshipping. web site (a dropshipping site is one where you’re the middleman and, once an order has been placed on your website then you can make the same purchase via an Chinese website like Ali-express, for a lesser price and retain the rest as your revenue) regarding Gauntlet.

In case you’re not aware of what is a Gauntlet is, it’s one of the most popular objects from an Marvel movie that is like this:

It’s nothing to worry about as the Dropshipping site, as it’s an established business model. Then I began to look at the figures.

The seller claims that the website’s age is 5 months old and the seller earned $81,667 per month for the 5 months.

Well, he’s doing well.

I went to his profile (it is in the image above) and I could see that he had an earlier transaction of $5250 . So it was a sale on Flippa and not a brand new person who’s going to be a fraud, isn’t it?

So, continue reading.

You may be asking yourself what the reason for selling anything for $15,000 dollars when it’s earning profits of $81,667/month isn’t it?

The answer could be that the item is extremely seasonal, however even the fact that it’s one month longer can earn the seller 5X the profits of the asking price.

It’s not logical, isn’t it?

To find out where I can explore this further I sent him a message via Flippa and asked him if they would consider the deal for $5000.

Here’s the entire discussion (read from the beginning)

He was quick to agree to the $5000 cost for a website that is, according to him, worth more than $80k per each month. I’m sure he’d have agreed to $500 as well.

This is what’s fundamentally wrong with Flippa.

I then looked into the website, and it was the first website that was made during the same month. was not receiving any traffic from Google and the FB page was not advertising in place, the FB page was liked by three people and that’s it.

It’s not an isolated instance. Flippa has become a fraud marketplace, where a few fraudsters are trying to sell false promise websites and web-related properties.

That’s the reason I’d suggest to stay clear of Flippa particularly when you’re new to the world of online marketing.

If you’re like me, you’ll never buy an unremarkable website from Flippa since you are able to analyze the back-end of the process, and how to make your own due-diligence, however if you are someone who is just trying to purchase a website in order to start playing, Flippa will be a nightmare.

Flippa is among the biggest marketplaces around for selling and buying websites. They’re the longest-running one in the business, which means they receive more people per month than any other web-based broker on the internet.

One of the main ways to monetize the product that Flippa utilizes to earn profit is to charge the seller one-time fee plus an amount of the sales.

If you’re selling a site and trying to sell a website through Flippa the site, you’ll be paying the company a listing fee of $27 to put the site up for sale and after that, a 10% fee on the amount you agreed to sell in the event that the site is sold.

In Flippa’s interests to allow all to sell on the platform since sellers receive a one-time $27 listing fee that makes it a bread-and-butter for the business.

Personally, I’ve never been aware of anyone who attempted to post a site on Flippa and was turned down.

It’s a fact that it’s never happened.

As the time came to write this post I decided to take a glance at the highlighted page of Flippa.

Remember the featured section is the place where Flippa handpicks the most relevant of their listings.

Here’s how it appears in the present:

They’re all frauds, but the most notable option is the third (Bitcoin Profit Secrets.website). This does not require an Einstein to comprehend that  website cannot be sold for just $16 when it’s making an income of $741 per month.

Are you serious?

What’s the problem with Flippa?

The reason that Flippa has become the ideal place for dream-sellers and scammers is that Flippa does not have a manual process for reviewing prior to any websites going for sale.

They allow you to enter your own data, and don’t check if the information you’re putting in is correct.

I could create an online site today, and claim that it earned $20,000 USD by tomorrow, and then post it on Flippa the day after tomorrow, asking for a price to sell that is $30,000 dollars.

Flippa will never ask me to provide the evidence of that $20k.

It’s also where other websites brokers can come in. Brokers such as Empire FlippersMotion Investment and some others will always demand proof, perform due diligence and be looking for signs like a natural revenue curves.

While it will cost you a lot more to purchase a website through a similar broker but the risk is low.

Another option is buying websites from Facebook groups.

It may sound crazy, however if you check out some of the most popular Facebook groups on Internet Marketing, you will see a lot of people selling websites.

Be sure you’re taking your time and employing something such as Escrow to act as intermediary instead of sending money to a person.

This review is designed to assist you in choosing the best websites, and not to hinder you from playing the game.

Here’s what a user from Truspilot stated:

This is a marketplace, therefore you can expect some fake websites and products on it. The experience of searching is great There’s plenty to browse through, but for someone who aware of how business on the internet is, it’s difficult to select a trustworthy list. The support isn’t great whatsoever. They tend to shuffle you around.

I completely agree. Check out more critiques here.

This was the end of my Flippa review. Did you have the experience of being duped by Flippa?

I’d like to know. Drop me a line.

 

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