Marketplace Pricing Updates

Effective today (Dec 13th), we are making the following changes to our fees:

    • Website auction listing fees will now be $19 for starter sites and $29 for established sites
    • Success fees will now be 15% across all verticals (discounted to 12% when Flippa Escrow is used)

Later this week we will also introduce a $9 listing fee on website classifieds.  We expect this to go live on Thursday, Dec 15th.

We aim to provide the best possible outcomes and experience for our users, and we’re confident that introducing these changes will allow us to release even more exciting new features in the coming months.

If you have any questions or feedback about these changes to our fees, please contact our support team by emailing [email protected].  We’re here to help.

Note: These changes only apply to new listings, the previous fees will apply to any listings that are already live.

  • Aedan OBrien

    Ouch, that’s a massive hit for sellers who focus on starter websites. The average stater website sells for around $60. A domain costs $10. Before these prices, my profit for selling a $60 starter website was at $32.56, and if lucky, selling it for the BIN price at $88, the profit was at $56.81. This includes domain price, listing price, success fee, paypal fee. Not included is the time spent creating the websites, time spent creating the auction, time spent on after sale support nor the local taxes, which in most countries are between 20% – 40%. Additionally, 30% of all websites need to be relisted at least once, since they don’t sell the first time around. This was an additional $5 gone.

    With the new pricing, if a website sells for $60, the profit is at $19.56 and it doesn’t sell the first time, the profit is at $10.56.
    That means for most starter website sellers, the profit margin is so incredibly low, it’s only profitable for sellers who live in developing countries, where a $10 profit is considered a lot.
    Only a few months back, I managed to make profits of $2000 – $2500 profit before taxes.
    With the new pricing structure the profit will be down to $1200 – $1800/month. With these prices it’s no longer possible to sustain a working business selling starter websites on Flippa, which takes up 30 hours per week.

    I am unsure why this decision was made in the first place. Are you guys hoping to get rid of all the low quality starter websites? My first thought was, that with higher prices, it will get rid of all the low quality starter websites, which are mainly created by sellers from India (not to be racist, just a fact). With less sellers on the Market, the sales price of websites would go up again. If this would happen, the listing price will be justified.
    However on second thought, I am pretty sure this will backfire, since the only sellers who’s business you are killing are sellers from North America and Europe as they can no longer sustain their business. All the Indian and Pakistani sellers will be the only ones left on Flippa, since for them $10 profit per sale is a lot.

    Apart from that, was there any other reason behind the drastic price increase?
    Back in 2011, the price was at $29 per listing, but at the same time, 100% of all starter websites sold for an average of $250.

    • Goodbye Flippa

      I don’t think they want to eliminate low quality starter sites because it’s no longer a big issue, I think they want to eliminate honest sellers because honest sellers report scammers when they see them, and that’s not good for flippa. Less scammers = less listings = less profit for flippa.
      I think that’s the case because quality of starter sites is higher than ever, most starter site sellers are scammers who use premium themes and plugins without paying for a license, pirated versions, they use best quality themes and all the good plugins that normally cost close to $100 (theme license about $70, plugin license about $30). Best quality there is, so the quality is high.

      The problem is that sellers like me report them sometimes, then Flippa has to suspended them, if they don’t suspend them when reported it would mean they support the scammers.
      By rising the listing fees and success fees, they eliminate sellers like me who will no longer use flippa, so now there won’t be nobody to report the scammers and Flippa won’t have to suspend them, that’s more scammer sellers = more listings = more profit for flippa.

      Maybe I’m wrong but I see no other explanation why flippa did nothing for many years to prevent scammers from distributing pirated themes and plugins when they know it’s a big problem and they know it’s very easy to prevent it.
      Now only scammers will afford to sell starter sites and nobody to report them. Flippa will continue to make millions thanks to them, people like me will no longer bother flippa with silly reports of pirated themes and plugins they use. I think that’s the plan.

      • Fees are too high! By the time you buy a domain, erect or buy a site, pay for listing and success fees, not to mention PayPal fees.. there goes roughly 70% of your profit.. .so what’s the point in listing sites under $200? I can see higher end sites like $1000+ not complaining too much but I believe 80% of the sites begin sold on Flippa are the lower end ones under $500.

        Millionaires getting richer off the sweat of hard working webbies !! Shame !!

  • Goodbye Flippa

    Can someone at flippa explain why do you think starter sites have no value?
    Some time ago I was told by Flippa staff member that he thinks starter sites have no value and you are planning to phase it out.
    How buying a ready made site for less than $100 has no value when themes alone and plugins can cost $100 for licenses alone, with no setup, no content, no support (except fixing errors by developers).
    What is a better way for a beginner to start ? For low cost they can learn without risking a lot of money, save time and get support from seller that helps them.
    I make an average $6,000 per month from the same sites I sell to my customers (not from selling them but by running them). How can this have no value?
    From what I offer more people can make more money than from many established sites sold for thousands of dollars.

    It doesn’t matter these are cookie cutter sites with no original content. The point is it’s a good way to start, can be customized and original content added when needed. It’s less expensive and less time consuming than building it from scratch, or buying components separately to put it together. No risk and fast way to start and learn, if purchased not from a scammer.
    Starter site sellers provide valuable service, the problem is the scammers you do nothing about. They flooded flippa and drove the prices down by selling stolen premium themes and plugins without ever paying for licenses, that allows them to sell sites for very low cost.
    Only scammers will now afford to sell starter sites, is that your plan or what?

    You may say you did this to make sellers develop better quality sites, it will not work, because scammers have the best quality starter sites already, since they use the best themes and plugins available on the market, pirated versions and never have to pay for license, they can sell them for less than sellers who are not involved in illegal activities. How sellers who are not scammers can compete with that?
    Why not remove starter sites from flippa completely? Why did you decided to eliminate honest sellers and allow only scammers to sell starter sites?

  • David Rosenburg

    I agree with the prediction that this only serves to lower the quality of starter sites. Surely they know this will discourage many buyers – but it’s not discouraging low quality sellers. They can still make a profit, and if they’re the only ones selling they’ll be making more than ever.

    I genuinely feel I’ve brought something to flippa’s marketplace that makes it a better place – quality websites with solid business models. I’ve made my clients happy, and I’m not out there promising more than I can deliver. Yet, I feel a little betrayed here.. I agree it’s probably a misguided attempt to control the market, but I fail to see how this benefits anyone but flippa – by taking a higher success fee on all websites and consequently killing the starter site market.