How to Buy a Shopify Site

How to Buy a Shopify Site

With the launch of our new Shopify marketplace comes the ability to find the hottest Shopify stores for sale! Now you can quickly sort through top Shopify stores for sale and find which store is right for you.

Want to jump right in? See all current Shopify stores for sale.

Why Shopify Stores (over WordPress)?

If you’re unfamiliar with Shopify as a platform, you may be a bit skeptical on how Shopify performs over, say, a WordPress site powered by WooCommerce. So why should you consider buying a Shopify eCommerce store? Because Shopify as a platform is both simple and powerful.

Everything from themes, to analytics, to payment processing, is handled seamlessly through the Shopify platform, creating an easy-to-use platform with strong analytics.

To put it simply, Shopify has eCommerce down to the tee, which is why Shopify powers over 400,000 active eCommerce stores worldwide.

How to Browse Shopify Stores on Flippa

To find all Shopify stores for sale, navigate to our websites tab and click on Shopify.

Alternatively, you can click this link!

Once there, we recommend filtering your search options, to find the asset in your price range and that fits your needs.

Shopify Due Diligence

Now that you’ve found an asset that you like, it’s time for due diligence. Due diligence is an important process when buying any digital asset, including Shopify eCommerce stores. That said, Shopify does make it easy for potential buyers to verify the income and traffic of a Shopify store.

What questions should you ask?

The goal of due diligence is to verify everything that the owner has said to be truthful, and to make sure that the asset is what you think it is. Never be afraid of asking questions!

Some things you should be looking for include:

  • Verified revenue (such as screenshots of the Shopify revenue dashboard)
  • Access to Google Analytics or screenshots of Shopify Analytics
  • Understanding the time commitment of operating an online business
  • Asking about their return rate

These are a few of the questions you should be asking. If you ever had a bad feeling about an asset, please report the listing immediately and our marketplace integrity team will investigate further.

Purchasing a Shopify Store on Flippa

Once you’ve done your due diligence on an asset and you would like to purchase it, it’s now time to place a bid!

If you’re not sure how much a Shopify eCommerce store may sell for, we recommend reading this blog post about website valuations from Jeff Hunt, a serial website investor.

The Flippa bidding process works the same as other online marketplaces, but in case you’re unfamiliar with the process, you can learn more about bidding here.

Happy bidding!

Escrow/Transfer Process

Upon winning an auction, it’s now time to make the payment. Whether the transaction is done through PayPal or Flippa Escrow, you can start by proceeding to the sales completion area, which is only available to you and the seller.

If you have the option, we highly recommend using Flippa Escrow as the transaction is the much more secure compared to PayPal.

Once the money has been sent over, the seller will now transfer the assets over, and you now own your very own Shopify eCommerce store!


Have you bought a Shopify store before? Comment below with your experience!

All About Multiples: How Much is a Website Actually Worth?

All About Multiples: How Much is a Website Actually Worth?

Everyone wants a good deal.

When it comes to a website, what is a good deal? How do you decide how much you are willing to pay, good deal or not?

We’ll start by looking at “multiples”, the unit of measure that is most often used to express the value of a website.

Multiples

When a website that makes $10,000 in net profit per year, sells for $20,000, we say it sold for a 2x multiple. The selling price was two times the annual net income.

Every website is unique. The “multiple” concept gives us a way to compare the value of sites that may have nothing in common except the generation of income.

Centurica publishes historical “multiple” data in its “Website Buyers Report”.  The table below shows multiples by asking price in 2016. Note: the 2016 data has not yet been officially released.

Centurica Website Multiple Values 2016

The pattern is that websites generating more net income, generally sell for higher multiples.

Why do smaller web business sell for lower multiples?

In short – they are riskier. Sites with less net income are typically younger. They haven’t proven that they can grow over a sustained period of time.

There is also a correlation between the business model of a website and the average multiple it sells for.

Average Multiple by Primary Business Model

Centurica 2015 Website Buyers Report

Why are multiples different for sites with different business models?

There are a lot of reasons why multiples vary by business model.

  • Buyers pay more for sites that require less work to operate. Some business models require less operational effort.
  • Buyers pay more for sites with a lower risk profile. Websites that have recurring revenue are a little less risky because when things go wrong, the future revenue stream gives the owner some time to fix the problem.

Conversely, websites that do not have recurring revenue may lose value quickly when they hit a bump in the road, like sudden traffic loss or a policy change by Amazon, Google or Facebook.

If a website requires substantial effort to operate and it doesn’t have recurring revenue, that doesn’t necessarily mean it is a bad investment. It just means that is likely to sell for a different valuation than a low-effort, subscription revenue site.

Cautions About Multiples

Multiples are designed to give us a nice rule-of-thumb to use in valuing a website. They do, but they can be misleading and insufficient. Why?

1. Every website is different

Let’s consider two websites that use the same business model. They are both content websites. They both earn about $10,000 per year net. You would think they would sell for roughly the same price.

That may not be the case at all. If one website is 4 years old with steady, consistent growth, and the other website is 6 months old and has made most of its $10,000 in the last 3 months, they are very different investments.

The newer website might sell for much less than the older one since buyers may believe the newer site is less trustworthy and riskier.

However, the newer website might also sell for much more than the older website. What if the new site is earning an average of $3,000 per month over the past 3 months. On an annual basis, if things continue at that rate, the site may earn $36,000 over the next 12 months. That would make the site worth around $100,000 based on the 2.9x multiple from the Centurica report.

That leads us to the next caution about website multiples:

2. Annual multiples do not adequately reflect recent performance

Screen Shot 2017-04-10 at 10.49.23 AM

Look at the two charts above. See how just looking at the total net income for the year might not tell you what is going to happen next year?

Will the recent upturn continue? Or is it a holiday sales spike?

Will the sales rebound from the downhill slide over the past 5 months?

3. The last 12 months doesn’t tell the whole story

This graph of traffic over the last 12 months shows a decline over the year with a rebound at the end of the year:

Picture2

Looking back over the past 3 years we see that the traffic is also declining year over year:

Picture3

Using the last 12 months of net income as a predictor of future results or current net worth, doesn’t take into account the overall downward trend of the website traffic.

4. Website brokers often base their quoted multiple on something other than the last 12 months of net income

Look at this broker listing:

Yearly revenue       $20,000*

Yearly net profit      $19,000*

Asking price            $44,000

* Profit and revenue figures are annualized on a last three month basis.

At first glance you might think this website is selling for a 2.3x multiple, $44K / $19K. But if you look at the footnote, you’ll see that the website didn’t actually earn $19,000 in the last 12 months. We don’t know what it actually earned, all we know is that the average monthly income over the past 3 months was:    $1,583 ($19,000 / 12)

The broker might argue that the last 3 months are a more important indicator of the website’s value than the past 12 months. He may be right. Or he may just be trying to get a higher price for the website than it is actually worth.

Flippa always shows 12 months of income in a graph and also in a table. Flippa also always displays monthly averages computed over the past 3 months.

People who have been buying sites on Flippa over the years have probably heard that you can find sites for multiples of 8 to 12 months times annual income.

While this is true in some cases, it is also true that many of the “low multiple” purchases are not actually computed correctly. Take this example:

Low Annual Website Multiples

Flippa displays the average net income as $2,000 (because it is the average of the last 3 months).  The seller says he is selling at a 2 year multiple – $48,000 ($2,000 x 24 months).

The truth is that a $48,000 asking price is actually an 8x multiple. The site’s annual net income was only $6,000.

Make sure you compare apples to apples.

How Do You Decide the Right Multiple?

So how do you decide which multiple to use and ultimately how much to pay for a website?

Website Buyer’s Hierarchy of Needs

You may have heard of Maslow’s Hierarchy of Needs which describes human motivation.

Here is my cut at the Website Buyer’s Hierarchy of Needs:

Website Buyers Hierarchy of Needs

Read this from the bottom up.

Our highest priority is to maintain our security by preserving our capital! Don’t lose the money that it took so long to earn and save.

Secondly, we want to generate cashflow. Passive income is what enabled me to escape the corporate rat race. That doesn’t mean I don’t work hard, it just means I work when, if and where I want to work. I define the priorities.

It is wonderful to preserve our capital with a sound investment and to generate cashflow with solid ROI’s. But you can do all that and still be bored and unmotivated.

So we want security and cashflow, but we also want to be doing work that we enjoy to the greatest extent possible.

A Risk-Based Valuation Method

Because my most fundamental desire is to protect my capital, I start my valuation analysis by analyzing risk.

I decide whether the investment is high, medium or low risk by analyzing the most important components of the business:

  • Traffic
  • Revenue
  • Product (or content)
  • Process
  • Operational effort
  • Dependencies on 3rd parties
  • Knowledge / Skill requirements
  • Completeness and accuracy of information provided by the seller
  • Etc.

Without diving into every category, here are a few examples so you understand the analysis:

  • High risk traffic: single source referral, no diversification, black/grey hat SEO has been used
  • High risk content: plagiarized, programmatically generated, low quality, short/thin
  • High risk product: something trendy that could go out of style
  • Low risk traffic: multiple sources, long history of steady traffic, proven process to increase traffic with specific SEO methods or proven ad campaigns
  • Low risk knowledge / skill: industry standard technical platform, easy to find resources, low cost resources

You get the idea.

If you determine that the website is Medium risk, all things considered, then begin with the Centurica multiple for the business model and size of the website.

If you think the website is High risk, then you need to reduce the Centurica multiple proportionately to the risk you feel exists. That might mean going from a 2.5x to a 1.5x or even 1.0x.

If the website seems to be Low risk, you can afford to add a bit to the Centurica multiple.

Accounting for Opportunity?

After you adjust the “market multiple” based on risk, do you also need to adjust it for opportunity?


Future potential or opportunity of the website is a good reason to buy, but it is usually not a good reason to pay more.


Another way to say it is “Choose to buy based on growth potential, decide how much pay based on historical performance and the risk profile.”

Having said that, sometimes opportunity is almost certain. For example, when I see a website with really poor ad placement, I know for certain, I can improve revenue by moving the ads or changing their size or color.

Sometimes there are websites that are excellent strategic acquisitions. They may have a product you know your existing customers would like to buy, or an email list you could sell other products to.

When the future opportunity has a higher level of certainty, I sometimes increase the maximum amount I am willing to pay for a website. But I still aim for the lower price of course!

A Valuation Example

A lead generation website earned $10,000 over the past 12 months in net income. I consider it “high risk” because the site is only one year old, it has only one buyer of the leads it generates, its traffic comes from a single source that is difficult to manipulate.

So I take the Centurica average multiple for a Lead Generation site of 2.59x (be sure to check for the most recent report), and I adjust it downward by 1.0 to get to a 1.59x multiple.

That means I am willing to pay $15,900 for the website.

The site looks like it will earn more than $10,000 next year because the owner raised his prices, and over the last 3 months, the monthly earnings are quite a bit higher than the previous months.

I would typically stick with the $15,900 price point, but if I am convinced that earnings will be $12,000 next year because of the price increases, I might be willing to spend as much as $19,080 ($12,000 x 1.59x) for the site.

Other Valuation Methods

There are many methods to value websites.

Some people don’t worry much about historical performance and buy purely on future potential. If you want to play the venture capital game, and can afford to be wrong 29 times, in order to be right 1 time and find a huge winner, go for it! But keep in mind that you aren’t only gambling with the money to buy the website, you are gambling with the time and effort it takes to run and grow it.

Others put a value on website traffic by assessing its source, geography and other quality factors. That’s not a terrible concept but it values theory over the actual financial performance of the traffic that visited that website.


Jeff Hunt wrote The Website Investor: The Guide To Buying Online Website Businesses For Passive Income. In addition to running his own portfolio of websites, Jeff helps entrepreneurs buy and optimize their web businesses. Learn more at www.OwnOptimize.com and www.HeckYeah.org.

Have anything to add about your own experiences with website multiples? Comment below!

Case Study: How One Team Boosted Revenue by 4x with no Additional Traffic

Case Study: How One Team Boosted Revenue by 4x with no Additional Traffic

The Website Acquisition that Boosted Revenues by 4x with no Additional Traffic

In the Summer of 2015, MonetizeMore purchased a polling site called MisterPoll.com, a website that enables users to create polls, share them and then provide the statistic results. At the time of purchase, MisterPoll.com was only running AdSense directly on-page, which MonetizeMore saw as a huge opportunity to increase MisterPoll.com’s ad revenues without even increasing traffic. MonetizeMore has been in the ad optimization industry since 2010 and has some of the best ad optimization tech and experts in the industry. In this case study, the team at MonetizeMore reveals just how we were able to take a site, and within one month, grow the site’s revenue by 4x.

The MonetizeMore team started by implementing the most widely used ad server in the world called DFP (Google owned). The implementation of the ad server enabled the team to run many revenue sources at once, include direct sales ads and incorporate complex ad optimization techniques. The first technique that was implemented was integrating Google Ad Exchange (AdX). Google Ad Exchange is the best performing demand source in the world. It is even more powerful when integrating in DFP using a technique called dynamic allocation. Since Google owns DFP and Ad Exchange, the two technologies are able to communicate with each other so that DFP always knows what AdX will pay for each impression. As a result, the publisher can be confident that AdX only serves when it is the highest paying demand source. This is a very important part of ad optimization and realizing a publishers’ ad revenue potential.

Once DFP and AdX were implemented, MisterPoll.com saw a revenue increase of about 50%. This was a nice increase but MonetizeMore was not done there. The next step was to implement managed demand ad networks. Managed demand ad networks are traditional ad networks that send ad tags to publishers that have passbacks if the ad network is not able to payout on a minimum RPM for that ad impression. They are implemented in DFP at price priority level and the priority levels are adjusted on a daily basis based on past performance. Six managed demand ad networks were implemented and after a month of optimizing, the ad revenues more than doubled.

The last and most important step to ad optimization was implementing header bidding. Header bidding is a similar process to dynamic allocation for non-Google demand sources. Each header bid network makes a bid via an API, then the highest header bid will compete against Google and the managed demand sources. It is called header bidding because it is enabled via a header container technology which is implemented in the header of the page and the auction happens within the browser before the DFP auction. MonetizeMore has a header container called PubGuru.

Header bidding dramatically increases ad revenues and page RPMs for similar reasons that AdX implemented via dynamic allocation increases page RPM. The technology ensures that the highest bidder wins the ad impression. When you maximize the ad revenue for each ad impression rather than educated guesses via managed demand, you see some incredible increases in ad revenue. This boosted the MisterPoll.com revenues to 4x compared to the monthly revenues before the site was acquired. PubGuru header bidding not only increased the ad revenues but it also:

  • Eliminated passback ad impressions which improved site speed
  • Decreased blank ad impressions
  • Increased the accuracy of DFP reports
  • Decreased the daily hours needed for ad optimization

There is no doubt header bidding was the most important implementation on MisterPoll.com that contributed the most to the ad revenue increases and additional benefits. However, the previous 3 steps were integral to the success and also enabled header bidding. If you are considering to purchase a website on Flippa that monetizes via programmatic ads, it is in your best interest to follow the four steps that MonetizeMore followed.

You can complete the four steps on your own or outsource it to a company like MonetizeMore. If you decide to do it on your own, you can use the PubGuru SAAS solution to guide you through each step at your own pace. If you don’t have your own direct account with AdX, you would need to use a company partnered with Google (Like MonetizeMore) to offer AdX demand. If your site gets over 5MM page views per month, you can qualify for a free DFP implementation. If you get more than 20MM page views per month, you can qualify to become a premium publisher and MonetizeMore will handle all ad optimization for you so you can focus on the more important parts of your business.

Whether you decide to outsource your ad optimization or do it in-house, make sure to make a decision and stick to it. The worst thing you can do is ignore this low hanging fruit. Do not settle with just running AdSense. Otherwise, you are leaving a significant portion of revenues on the table, just like MisterPoll.com was.

From Flippa to Shark Tank: An inside look at PotatoParcel.com

From Flippa to Shark Tank: An inside look at PotatoParcel.com

I recently caught up with Riad Bekhit, owner and self-proclaimed Chief Potato Officer at PotatoParcel.com, after he appeared on ABC’s Shark Tank and secured a $50,000 investment for his spud-powered enterprise. Bekhit acquired Potato Parcel on Flippa in 2015, and he’s since rapidly grown the business, which now generates $25,000+ in monthly sales of…potatoes. See the exclusive interview below for an inside look at Bekhit’s Shark Tank experience and his growing online sensation!

You bought the site on Flippa last year. What motivated you to buy, and why PotatoParcel?

Before acquiring Potato Parcel, I had recently quit my job in software sales. I had several eCommerce projects on the side, but without a 9-5, I also had more free time to began plotting my next big move. When I came across Potato Parcel, I saw great potential, and I knew right away that I wanted to get involved. I was able to negotiate a great deal to acquire the business, so I pulled the trigger at $42,000 and never looked back.

Can you give us any insight into how the business has faired since the acquisition?

The business is doing extremely well. It was instantly profitable and I recouped my investment quickly. We’ve continued to grow sales month over month, despite the many critics who said the site would never succeed. In the 13 months following the Flippa acquisition, we did $215,000 in sales, and things are continuing to accelerate with no signs of slowing down. Needless to say, it’s a great time to be an entrepreneur in the potato industry.

What was the process like applying to get onto Shark Tank?

It was actually quite lengthy. We first applied online and did not hear back from the producers for a few months. When we finally did hear back they asked us to send in an audition tape. Another few months went by after that, and then finally they asked us to come to LA to film the show. After filming, we were on edge because we weren’t guaranteed to air on TV, even though we pitched in front of the sharks. We were really hoping to air and were ecstatic when we heard we finally made it!

Once you were accepted, how did you prepare and come up with your your pitch?

We wanted to make our pitch fun, just like our product and company. So we decided to walk into the tank with potato costumes, sun glasses, and whip out potatoes from our back pocket. We also gave the sharks some funny potatoes too.

Shark Tank Potato Parcel Pitch

Riad (left) and PotatoParcel founder Alex Craig (right) pitching the business on Shark Tank

Did you go into it with any specific Sharks you wanted to do a deal with?

To be honest, we went into this not really knowing if we would even get an offer from any of the sharks. It can be a bit of a crapshoot sometimes with Potato Parcel, some people really get the business and love the idea, and others just think it’s a joke. That said, I did think Kevin (AKA Mr. Wonderful) would be interested, because of our high profit margins and the fact that he has invested in companies that sell customized products in the past.

What was it like pitching live to the sharks, and how did you deal with the nerves?

It was a lot of build up and preparation. Going through our pitch over and over again. Studying our numbers. Thinking of anything that sharks might ask us and having a solid answer for that. We were nervous for sure. A lot of heavy breathing. But once we started talking about our business it became more like a natural conversation with the sharks and the nerves subsided. That’s not to say it wasn’t intense, but the amount of preparation we put in really did pay off in the end.

Alex negotiated a royalty prior to selling you the business, can you tell us about that?

Alex sold 100% of the business to me on Flippa. However, as part of the sale we agreed that if the business was able to get on Shark Tank he would receive $1 from every potato sold for sixty days following the air date. Why did I agree? I owe Alex great credit for getting the initial traction in the early days of the business, and I also knew Shark Tank would provide a great platform to get the business in front of more people. Because of his contributions and the potential upside of the deal, the royalty was a no-brainer, and in the end Alex’s influence definitely helped us land a spot on the show.

You ended up with two sharks fighting over you, why did you go with Kevin over Robert?

It really just came down to their offers. When the other sharks backed out, Kevin O’Leary’s final offer was $50,000 for a 10% stake and a $1 royalty fee for up to $150,000. Robert Herjavec’s final offer was $50,000 for a 17.5% stake. In the long run, I though Kevin’s deal was the ultimately going to be the better deal (after the royalty gets paid off.) He is also a funny guy who really loved our quirky idea, and I think that because of his passion, he’ll be incentivized to continue to help us grow.

Potato Parcel on Shark Tank

“The Queen of QVC” Lori Greiner (Left) and digital security mogul Robert Herjavec (Right) enjoying the sample products

What’s it been like working with Mr Wonderful since the show aired?

As of late, I have mostly been dealing with his PR and social media team. That’s one of the benefits of doing a deal with a shark like Kevin, he’s got a mountain of resources behind him and a lot to offer beyond the dollar signs. I’ve also had several calls with him since the show aired, and I’m excited to continue to grow the business with him moving forward.

What’s in store for Potato Parcel, and how can people follow what you’re up to?

We want to come up with new products, have more international ambassadors join our team, and possibly expand into a business including many quirky and funny gifts. But for now, we remain focused on our core offering, selling potatoes with customized messages inscribed on them. If people want to check in on the company, the best place is our official twitter. As for me, I currently work full-time on Potato Parcel and I see myself doing this for as long as possible! I’d prefer to always work for myself, and I prefer to do that selling…potatoes.

The Beginner’s Guide to Flippa: Part 3

The Beginner’s Guide to Flippa: Part 3

In the third installment of the Beginners Guide we’ll focus on the three payment options that are available to users on Flippa: Flippa Escrow, Paypal and Escrow.com. All other charges on Flippa will also be covered.

These posts are interactive so if you have any suggestions or find any features on Flippa or Dealflow particularly challenging or confusing then please contact us at [email protected] You can contact me directly at [email protected] We would love to hear your feedback!

Payment Methods

Sellers have three payment methods they can choose to accept.

  1. Flippa Escrow
  2. Escrow.com
  3. PayPal

 

Flippa Escrow

Pros: Trustworthy and secure

Cons: Takes more time to complete than PayPal (3-7 days usually but can take longer depending on your bank).

Flippa Escrow is the recommended and most trusted of the three available payment methods. There are no escrow fees apart from a 2.9% Credit Card surcharge for Buyers with Flippa Escrow. Success Fees are automatically taken out of Flippa Escrow payments so you never have to worry about paying it separately. There is a flat $25 international wire transfer fee if the Seller opts to have funds placed into their personal bank account and is located outside Australia, New Zealand, and the USA. The Seller can instead opt to receive payment into their PayPal account, where Flippa charges no fees but PayPal typically levies their own. The Seller can choose how to receive their funds at the beginning or end of the transaction in the Flippa Escrow screen.

For the Buyer, payment can be initiated from the Start Flippa Escrow button in the Sale Completion Area (provided the Seller has selected Flippa Escrow). Wire transfers to Flippa Escrow may be started from the Buyer’s bank account at any time once the transaction has begun, and debit/credit card payments from the Buyer can be accepted when the Seller is outside of India, Indonesia, and Pakistan.

The Flippa Escrow transactions usually take between 3-7 days to complete. This depends on a number of factors, including different time zones, delays from the Buyer’s bank, intermediary bank fees, and if either customer has been offline for a day or two, etc.

 

The Flippa Escrow transaction process:

– Once the listing has ended and has a winning bidder, a Sale Completion Area (SCA) is created and from there the payment can be initiated.

– The Buyer would click on Start Flippa Escrow (if available).

– First, the Buyer is instructed to make the payment into Flippa Escrow. The payment must be the full transaction amount and typically must be paid in one installment; split payments via a credit card are not possible. Payments can be made using a wire transfer, Visa or Mastercard debit or credit card. Buyers have to make payments via wire transfer when sending funds to a Seller  who is based in India, Indonesia, and Pakistan.

– Once received, the funds are then securely stored in the Flippa Escrow vault and the Seller will be instructed to transfer ownership of the asset(s) to the Buyer.

– When the Buyer confirms that assets have been received and they are as expected, they will then release the funds to the Seller.

– The Buyer and Seller should define a set inspection period after the Buyer receives the assets to confirm they are as expected before the Seller requests the release of payment.

– Once the funds in Flippa Escrow are released to the Seller, they should arrive in the Seller’s account within the next few days, but can take longer depending on the Seller’s country of residence.

– If the Buyer becomes unresponsive and does not release payment or if the Buyer has paid into Flippa Escrow and the Seller is unresponsive, a dispute can be filed and our Marketplace Integrity team can review and potentially release or refund the funds in certain circumstances.

 

 

Paypal

Pros: Quick, easy and familiar

Cons: Little to no security, Flippa cannot gain access to information and it is limited to certain countries

PayPal is an American company operating a worldwide online payments system. Online money transfers serve as electronic alternatives to traditional paper methods like checks and money orders. With Paypal that there is NO escrow or third party involved.

Paypal is the fastest and easiest payment method of the three available on Flippa but, using PayPal is the least secure purely because we are unable to monitor the sale and keep assets safe.With Paypal that there is NO escrow. PayPal transactions are usually between Buyer and Seller – no third party interference – so be sure to ask questions and build-up a level of trust before sending/receiving funds/online assets.

PayPal is unavailable in Ukraine, Pakistan and Israel. To check if your country of residence accepts PayPal then please reference the PayPal website for a complete guide. Feel free to contact their Support team for more information. PayPal also offers phone support.

 

 

Escrow.com

Pros: Secure and safe.

Cons: Higher/variable fees and can takes longer than PayPal.

Escrow.com is another trusted form of payment that works in a similar way to the Flippa Escrow process. Escrow.com reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disperses funds when both Buyer and Seller are satisfied.

Escrow.com is secure but like Paypal is independent of Flippa which means we do not have direct oversight of the transaction. We offer a 20% discount on Escrow.com fees when the transaction is initiated from the Flippa Sale Completion Area.  For more information on Escrow.com, including a fee calculator, you can visit their website:

 https://www.escrow.com/what-is-escrow

 

    • Our Payment Recommendation:We wholeheartedly recommend Flippa Escrow because:
      • Assets are kept safe until payment has been made
      • Funds are secure
      • Agents have access to transaction details so we can answer more questions regarding the sale
      • We can issue refunds when applicable
      • As a Seller you can opt to have funds placed into your PayPal account (instead of bank account ) which will completely avoid the $25 wire transfer fee.
      • Flippa Escrow is free to use

 

 

Buyer Certification Hold

We receive a lot of tickets through Customer Support regarding the $5 Buyer Certification Hold. The Buyer Certification hold is a check conducted by Flippa to make sure you have a functioning bank account/credit card that will allow you to send/receive funds while you are buying/selling on Flippa. You will be automatically prompted by the system to get Buyer Certified when you place a bid over $200.

If you do not have a credit card but wish to bid over $200 you can get Buyer certified by sending us a photo of your ID and another photo of you holding the ID. For more information, contact our support team.

The hold is not a charge. We do not remove any funds from your account. The duration of the $5 hold should not exceed a couple of days depending on your bank and which country you’re living in. Some countries’ banks operate much slower than others so it may take time to see any charges.

 

 

Premium Buyer Certification Hold

 

Buyers who place bids of over $2,000 will have to pre-authorize their credit card/bank to be Premium Buyer Certified. The hold is increased to $500 for Premium Buyer Certification but works the exact same way as the $5 hold.

Unfortunately you can not be Buyer Certified in advance. You will be prompted by the system  you are bidding 5k+ on a listing. For any questions regarding Buyer Certification please contact our support team – [email protected].

 

 

 

Success Fees:

The Success Fee on Flippa is 10% of the total sale. The Success Fee is mandatory and is non-negotiable. With Flippa Escrow and Escrow.com the Success Fee will be automatically deducted from the total amount. Sellers who opt to use PayPal must select ‘Pay Success Fee’ from the SCA,.

All Sellers will be invoiced for Flippa Success Fees but please remember that the fee will be automatically deducted when using Flippa Escrow or Escrow.com. Therefore, Sellers using these methods can ignore any invoice awaiting payment. Failure to pay Success Fees will result in a suspension or a permanent ban. Users are notified when a Success Fee is overdue.

Success Fee rates may range between 12.5-20% for a Seller using Dealflow or in-house Domains Brokerage. The Success Fee percentage will be negotiated and determined by both Seller and Broker at the beginning. For Domain Brokerage you can expect to pay a mandatory 10% Success Fee if sold on the marketplace, and 15-20% for account management / brokerage. Follow the table below for more information on Dealflow Success Fees.

 

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The only other transactions to expect while using Flippa are paying for Listing Fees or Upgrades either of which can be paid by credit/debit card (we do NOT accept American Express) and PayPal. A complete breakdown of listing options and fees can be seen in the Beginners Guide:Part 1. 

http://flippablog.wpengine.com/the-beginners-guide-to-flippa-part-1/

 

Feedback

Leaving Feedback is one of the most crucial parts to the Flippa platform. Feedback on Flippa allows buyers and sellers to share their experiences in an open environment.  Flippa does not edit or censor feedback comments because we believe it brings a very reliable element of truth and trust to our marketplace. However we sill step in if there have been false claims made or the content of the comments breach Flippa T&C. To report any unfavorable comments please contact a member of our team- [email protected]

 

We don’t allow feedback comments that contain:

      1. Spam, advertising or other commercial content, including links to such content
      2. Obscene, racist or vulgar language
      3. Feedback not related to this sale, but to other transactions
      4. Personally identifying information such as phone numbers or addresses
      5. Political, religious or social commentary
      6. Content that is fraudulent, misleading or deceptive
      7. Content that refers to a Flippa dispute or investigation

 

Every user will receive an invitation to leave feedback 7 days after a sale has been completed. Each user will be invited by a link sent via email. The option to leave feedback will be available for 60 days and will expire after that. For more information: https://flippa.com/feedbackpolicy- 

 

In the next Beginners Guide we will delve into the dispute process on Flippa. As mentioned before if you have questions or recommendations on what should appear in the next Beginners Guide then please do not hesitate to get in touch- [email protected] / [email protected]

 

We would love to hear from you!

 

Zero-to-Hero Startup Acquired By Investment Company on Deal Flow

Zero-to-Hero Startup Acquired By Investment Company on Deal Flow

When Neal Verma and a few friends started the search engine iRazoo in Houston in 2007, they had high hopes for its future, but they never could have expected that their journey would end with a high-value exit on Deal Flow.

iRazoo is a unique search engine that allows users to earn points by watching videos, taking surveys, and searching the web. These points can then be used to redeem gift cards from most of the world’s major shopping brands including Target, Amazon, and WalMart. The algorithms behind iRazoo’s search functionality are unique and feature a patented search methodology reliant on user votes to rank the search results.

After inception, iRazoo quickly gained fame, and received coverage in the Houston Chronicle and CNN, among other noteworthy news outlets. But, far removed from the Silicon Valley tech community, iRazoo failed to attract the attention of VC investors. Mr. Verma found himself at a crossroads, but rather than give up and let the company collapse, he chose to bootstrap iRazoo and continue pushing forward.

That decision paid off, and as of today, iRazoo is one of the largest “points-earning sites” on the internet. Despite being bootstrapped, the company has been profitable and it has onboarded millions of visitors throughout the years.

“We developed iRazoo originally because we believed we could create a unique search engine combined with a points incentive — and we did,” said Verma. “Even though people use Google, Yahoo, and Bing to do the vast majority of Internet searches, we’ve always believed there was room for a search engine like iRazoo.”

Mr. Verma believes the success of the company hinged on the small, but tight team who stuck together from the very beginning. Even though the odds were stacked against them, they persevered and built iRazoo into what it is today.

Of course, after years of hard work, the decision to sell was not easy. “For us, iRazoo was almost like a child. We nurtured it, helped it grow, and it was a tough choice to let the business go.” However, running one of the largest property management companies meant that Mr. Verma had less time to spend on the iRazoo business, and he and his partners decided it would be best to exit.

“After we made the decision to sell, we shopped around several website brokerages. It didn’t take long for us to realize that the level of expertise and professionalism shown by the website brokers at Deal Flow far exceeded that of the other brokerages we had researched.”

Paired with one of Deal Flow’s leading website brokers, Griffin Sinn, the sale of the business got off to a quick start with dozens of qualified inquiries. The inquiries soon turned to offers, and the interest in acquiring iRazoo was so strong that the business ultimately sold well above the asking price.

The sale marks the next phase of iRazoo, and Mr. Verma believes the investment company can provide the “funds, means, and expertise to take iRazoo to the next level. I’m very excited for what the future holds.”