FreeMarket.com – The Biggest Threat to Flippa and Other Domain Marketplaces

Freelancer Technology, the company that acquired WarriorForum.com not too long ago, has recently launched a new venture called FreeMarket.com. FreeMarket is a marketplace platform for buying and selling domain names and websites. According to FreeMarket, the Warriors (members) spoke and they listened. One of the main issues that people faced when selling their website or domain was the high upfront listing fee as well as the minimum commission that every marketplace was charging.

FreeMarket puts an end to the high entry barrier and eliminates risk by getting rid of the upfront listing fee and also offering sellers a lower commission rate (5%) on successful sales.

FreeMarket Pricing

To put in perspective, Flippa charges $9 for a domain-only auction and up to $19 for a website auction upfront, and a 10% success commission once the domain or website sells.

Flippa Pricing

I won’t even mention the other domain marketplaces that charge success fees in range of 20 to 30%.

In addition to the lower fees at FreeMarket, each transaction comes standard with free escrow service powered by the same secure technology used on Freelancer.com. Also, if you already have a WarriorForum account, there is no need to create a new account at FreeMarket because the accounts are already linked together.

I think the launch of FreeMarket has made Flippa nervous. Flippa is not only a direct competitor of FreeMarket, but Flippa has already lowered their prices to be more competitive. Flippa also introduced a new marketplace section on their site called Domains Catalog where sellers are able to list their domains for free with a 10% success fee ($10 minimum).

I don’t know about you, but the next time I need to sell a domain or website, I’m going to give FreeMarket a try. There is no financial risk on your part because there is no upfront fee, and if your domain or website sells, you only pay 5%. That’s a great deal in my opinion. Last but not least, FreeMarket already has massive reach thanks to the Freelancer network.

What do you think about the current domain marketplace situation?

Update 9/8/2014: Flippa has yet again lowered their prices. They got rid of the minimum success fees and their Start Sites success fee has gone down to 10%.

Leave a Comment

Your email address will not be published. Required fields are marked *