Buying Sites On Flippa

Just a short post from us today.

If you are looking to flip websites/domains or buy them you should check out FLIPPA.  But do use caution.  If a site was started in the same months it is being listed, and they are including Facebook Fan Pages and/or Twitter accounts etc., as part of the deal and there are thousands of followers or fans – question it.  You can buy likes and follows on Twitter and hundreds of other sites for real cheap.

Someone e-mailed us the other day asking us if it was possible for a relatively new site to have thousands of Twitter followers and several hundred likes.

Yes, it is possible – but difficult especially if they are “legitimate” likes and follows.

Buyer beware.  Whether it is Flippa or private domain sales, or website sales, do your DD (due-diligence) before placing that bid or offering to purchase.  To a certain extent you will also be relying on the information provided to you – in these cases see if the seller is willing to set-up a WebEx (or any other type of live conference) with you so that they can show you real-time information of sales/revenue figures along with traffic.

You should also remember the SALES/REVENUE does not equal PROFIT.  We see many auctions that list $200,000, or $1,000,000 in sales — but how much of that is profit?  What is the profit margin?  ASK THE RIGHT QUESTIONS.

Now on FLIPPA when you place an ad to sell a website you are asked to provide financial information, specifically Gross Revenue (3-months average) and Net Profit (3-months average).  The best way to have the owner prove is if they are willing to provide a look into affiliate accounts, or adsense accounts through a WebEx or other live conference solution.

Something else you really need to consider is whether the cost of the purchase is justified… but we’ll talk about that in another post.

About Rob 'n Mo

I'm a man of mystery. I like anonymity, but on the WWW there is not much of it...
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