In recent times I’ve seen a lot of complaints about Flippa, both from buyers and sellers.
When it comes to domains, there aren’t a lot of complaints from buyers because a domain is just a domain. What you see is what you get. However you do see complaints from website buyers, mostly because they didn’t get what they expected to get. Unfortunately, there are many sellers (not just on Flippa) that inflate their website numbers with fake bot/bought traffic. This is why you must do due diligence when purchasing a website. It’s not just about the numbers, but you have to ask how and where.
From a seller’s perspective, you see some complaints for both website and domain sales. The reality is it has become more difficult to sell on Flippa’s platform over the years.
I signed up with Flippa over 10 years ago and have bought and sold $xx,xxx worth of sites/domains there.
Ten years ago, Flippa was a young company, and they didn’t have the domain section like they do now. With a small inventory and a lot of investors, it was easier to sell for a good price. Also buyers didn’t have to weed through millions of domains or turnkey sites. Back then, most of the listings were for established websites, so it was easy for buyers to find what they were looking for.
Now the tables have turned. Now you have an inventory that is 100,000 times bigger, while the investor levels haven’t grown anywhere close to that. As a result, what you have is a buyer’s market where they can afford to be choosy. Also with so many listings in the marketplace, it is very hard to make your listing stand out unless you have a premium asset or top upgrades.
Flippa is no longer a marketplace where you can simply list it and forget it. In order to succeed as a seller, you may have to upgrade your listing, as well as do some marketing on your own. I’m not saying you can’t get a sale without promoting your listing, but it’s about how much profit you’re left with at the end of the day. After all the fees and time spent promoting your listing, your profit will have shrank significantly especially if you are not selling a high ticket item.
If I’m paying Flippa for a listing, why should I have to spend time on promoting my domain? Isn’t it Flippa’s job to find the buyers for the sellers? I would have answered yes to this question until they started offering free escrow service last year. The free escrow service certainly adds value to the overall service, and I think you can justify the $9 price tag for a basic domain auction. Just know that if you want above wholesale floor pricing for your domain or website, you will have to find a way to get more targeted views on your listing.
Yesterday, Flippa introduced a new Flippa Domains search page. The new page includes an advanced search tool which allows you to fine tune what type of domains you are looking for. This a big improvement to their previous search feature which was somewhat limited. In today’s domain market, it’s a must that you have multiple filtering capabilities, or you could overwhelm the buyers.