A few days ago, I was sitting on YouTube, about to press the upload button for a video debating whether or not Flippa charge too much for their auctions. Truth be told, I have a strong opinion on this, and the only reason that I choose to state how I feel about this is that there are a lot of people out there who simply aren’t prepared to spend to receive in return. Out of these people, I hope that at least some of what I said in that video made some sense.
So, now we are a few days later, and I have a very clear thought pattern, and wanted to talk on my blog about this subject, as I know that this is a touchy topic for not just Flippa, but those who debate this matter as well in the various webmaster forums online, by commenting on blogs, and by posting their concerns.
Before you read on, you can check out the video below.
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How Much Do Flippa Charge?
To list an auction on Flippa, there is a listing fee which is $19 USD. This is the bare minimum cost when it comes to selling websites on Flippa. Once a website has sold, there is a 5% selling fee which applies which is capped out at $498 USD and has a minimum charge of $5. For example, if you list a website, and it sells for 10$, then you would be paying a total of $24 USD.
Some argue that this cost is somewhat steep when you compare to the likes of Digital Point, who charge absolutely nothing to sell a website. However, it is my opinion that there is a much more important reason behind these prices than a simple method to fill pockets.
So, When We Infiltrated Flippa…
Myself and David Jenyns had the distinct privilege last Friday of being invited to Flippa HQ, managed to meet the team behind the marketplace, the GM, and had a chance to sit down and interview Luke Moulton. Apart from what came out on camera, there was a lot that was spoken about, and a lot of self realisation to an extent.
First and foremost, Flippa is a team of great individuals who run a fantastic marketplace. This is not your typical wannabe internet marketer who works 4 hour weeks, and works on their iPad on the beach, this is a serious business with employees, as such, wages need to be paid, and improvements need to be paid for. Of course, this is just part of the whole debate really, anyone could assume that even if listings were $5 a piece, that they would be able to afford to keep all of their employees on board quite easily, but it is not quite as simple as that.
To divert for a moment, people who work in commission sales are noted as being some of the hardest working people in sales because the work that they do has a direct influence on how much they earn, and how much they please their customers. Those who work on commission appreciate more than others the value of the return customer, and the value of an honest transaction. Well… most anyway… and the reason is simple. It adds accountability to who is selling or providing the service.
Now, this is only one possibility behind Flippa charging 5% on top of their listing fee, who knows what goes on at Flippa HQ to be honest (what we saw only scraped the surface), but in charging a commission for a sale, such as those completed on Flippa, this automatically adds accountability to Flippa when it comes to providing the best possible experience when it comes to selling websites online. If they fail at doing their job, then their income goes down. If they do well, they earn well. Getting my drift? It is all about accountability. And although I can not confirm whether or not this is exactly what their thoughts are, it is undeniable that there is an element of accountability added by charging that they do. And as such, they have developed into the best place to sell a website online.
Is Flippa Pricing Fair?
To be honest, I have never cared much for their pricing. If I can invest $19 initially, and return a few thousand dollars, I am very happy with that. At the same time, if the costs to list on Flippa mean that they have some kind of accountability when it comes to improving their service for paying members, then I am absolutely fine with that, as this is a service that I promote on this site with absolutely no return or comission from Flippa at all.
So now I will ask you something. being someone who follows this blog, I am sure that you either want to learn SEO, how to sell websites, or affiliate marketing, so your goal is to create a website that makes money in some way shape or form. Would you do the same? I know I would, but for the moment, I would love to hear your thoughts.
You can comment below, and you can also @reply me on Twitter.
