How does Broker Matching work on Flippa?

How does Broker Matching work on Flippa?

Flippa’s business broker network

Flippa partners with a world-leading network of business brokers. Each of these brokers has been reviewed by Flippa and hand-picked to represent our ecosystem of high-value business owners. We’ve chosen them because we believe they can help you better prepare your business for a sale, liaise with buyers and ensure you get the most out of the Flippa platform. When you join and choose to list your business for sale on Flippa we offer two options; either ‘Self Service’ or ‘Broker Matching’. The big difference between the two relates to the value of your business. Businesses over a certain value will tend to require a little more time and effort to sell and a broker is there to help. They’ll take on the process. They will work review your valuation, work with potential buyers, help prepare critical paperwork including the necessary prospectus, field offers and manage the DD process which can often be time-consuming and cumbersome.

So how does Broker Matching work? 

If you choose Broker Matching Flippa will:

1. Review and categorise your business Flippa will ensure your business meets the relevant criteria, request some additional detail including a current accountant verified P&L and ultimately categorise your business by size.

2. Match you up with up to three business broker This part of the process involves us reviewing our broker profiles and ultimately picking the most relevant broker for you. We’ll tell them a little bit about the business and review their fit.

3. Invite brokers to review your business and register their interest Once they’ve been assessed for fit we’ll invite them to formally review your business. They’ll sign an NDA and be given access to some key data.

4. Set up a ‘Meet the broker’ call Finally, it’s your chance. Talk with up to three brokers and make your decision. Once you have decided your listing will be converted to a ‘Broker Managed’ listing. Your success fees are fixed unless they have otherwise been negotiated, and from there, brokers will handle the Flippa marketplace and associated services.

If at anytime prior to your listing being converted you wish to opt for self-service instead simply contact [email protected]. Good luck. It’s a big decision to sell your business and regardless of the service you select Flippa will be with you every step of the way.

Flippa adjusts pricing and adds key services as it evolves to service high value digital businesses

Flippa adjusts pricing and adds key services as it evolves to service high value digital businesses

At Flippa, we are always looking for ways to add value and we will always add new features to support our growing ecosystem of business owners, buyers and the brokers who often support them.

 

Over the last few months we’ve been working on several ways to improve our seller and buyer experience. This has included the introduction of Flippa Escrow, high value business sales, dedicated account management for both sellers and buyers and the introduction of a broker program. Moving forward, we’ll also be investing for efficiency and to protect the integrity of the marketplace. This will include:

  • ID verification to assure buyers and sellers
  • Seller declarations to pre-qualify business inclusions
  • In-platform buyer / seller messaging services
  • An easy to use profile creator

And today, we are announcing new pricing plans designed to better suit our three core services. The new plans take effect effective immediately – Monday 5th November 2018 and are as follows:

  • Asset Sales including the sale of a domain, app or starter site, i.e. something not generating any revenue, can be sold for a listing fee of $25 and success fee of 10%.
  • Self Service Business Sales  is best suited to profitable businesses with a minimum six month trading history. Sell for a listing fee of $200 and a success fee of 10%.
  • Broker Supported Business Sales will match you with a specialist broker. Best for those with annual profits of 200k+. Sell for a listing fee of $200 and a success fee of 15%.

The 10% success fee on Asset Sales and Self Service Business Sales is a reduction. This was previously 15% for Credit Card payments and 12% when using Flippa’s escrow service. Flippa still absorbs the escrow transaction cost.  

 

Note: Pricing and fees are in USD. Your sell price should always be in USD.

New Services – Buyer and Seller Management

We’re pleased to announce that Flippa has introduced Buyer and Seller Management services. These services are free and designed to streamline the sales process for you.

  • Buyer Management takes the hard work out of the search. If you are looking to buy a business over $50k, simply schedule a call with one of our buyer managers here. They’ll learn about your needs and explain the matching process. They’ll then search for businesses on your behalf and will act as matchmakers.
  • Seller Management takes the hard work out of the matching process. This service is designed for businesses priced over $50k. You’ll be matched to an account manager post listing and your account manager will ensure your profile is optimised and that buyers are verified before they are put in touch. They’ll be by your side every step of the way.  

Coming Soon

We’re excited to announce that we will soon introduce two new services designed to improve the integrity of the Flippa platform – we take the security of our customers very seriously:

  • ID Verification. Flippa has partnered with the award-winning Jumio to ensure that both buyers and sellers are verified before listing or making an offer for a business. This service will be released in November 2018.
  • Platform Messaging / Negotiation. Flippa is working on improvements to the existing messaging functionality. This will enable in-platform messaging and negotiation to ensure buyers and seller private contact details remain confidential and that all communications are confidentially and securely stored. This service will be released in January 2018.

Helping to support the thriving business sales ecosystem

We’re excited by the progress we’ve made in recent months. We are proud of our history as an asset marketplace but we have evolved. Our vision is now to service buyers and sellers of businesses globally by connecting all parties, key services, and facilitating the end-to-end business exchange in a trusted and efficient environment.

 

Tips for first time buyers: You’re about to acquire your next business…so, move everything to the cloud (and take advantage of the migration to SaaS)

Tips for first time buyers: You’re about to acquire your next business…so, move everything to the cloud (and take advantage of the migration to SaaS)

If you and your business are already big users of SaaS based tech then you’ll know exactly what that means and how you’re using it. If so, then you certainly won’t need to read this article. If at the other extreme you think you’re not using Software as a Service at all yet, you’re almost certainly wrong about that. At the moment Dropbox, just for example, is rapidly heading towards a billion individual active users globally, with most of them still on ‘freemium’ access. STOP STORING FILES ON YOUR DESKTOP. Given the stellar SaaS advantages, small business and corporate-based paid premium Dropbox usage is sky-rocketing. So the odds are that you are already, at the very least, using this particular iteration of SaaS very regularly. If your business or start-up enterprise is to prosper, then one key essential is to understand the benefits and costs of the numerous SaaS offerings and lever these to your best advantage.

How much time should you be sending on this?

Chances are that regardless of whether you are selling products, services or personal experiences, your business is based largely on your own and your team’s communication and people skills. So the question is, what proportion of your time should you be spending on managing your IT structures when this isn’t your core business, your passion or your skill set? The answer is obviously, as little as possible. And this is where SaaS comes in.

If you decide to go largely stand-alone or ‘on-premises’ with your IT management then you are committing a significant proportion of your available time and resources to maintaining the currency of applications; creating adequate, retrievable and shareable data; and ultimately taking on the burden of servers, storage and network sharing capabilities. That means you won’t have the time you need to develop your real business – or else you’ll need to hire a specialist in-house IT person or small team, which even if viable isn’t cost effective.

There are intermediate options such as Infrastructure as a Service (IaaS) which comes in at the network sharing stage and provides the external servers and storage. However, it is generally much better to commit from the outset to fuller scale SaaS, which externalises all applications and data management. This enables you to concentrate on core business and to be free of software access constraints so that with no downloaded applications to manage and keep updated you can work from virtually any computer or device in the world, along with other members of your team. The cloud application services, managed by a third-party provider, are run directly through the internet web browser and don’t rely on any downloads or installations by you at all. That means that ‘on the road’ functionality becomes exactly the same as ‘on premises’ functionality for you and every team member.

What are the main advantages?

So, the major advantage of using SaaS is that it frees you to devote your time to what you are really passionate about and trying to achieve in your venture. It’s a great way to launch e-commerce with no software or server issues, no need to buy expensive downloaded software programs, no problems with access from mobile devices, and unlimited capacity for real-time data and document sharing with team members.

SaaS takes on the management of virtualization, in which a local workstation operates exactly as if it was using an installed application without this actually being the case. Additionally it enables users to remotely access their own personalised desktops from any device in virtually any location. Hardware virtualization ultimately enables an off-site third party processor to behave as if was many different individual processors working on the same hardware from team members’ own locations. The advantages include greater efficiency and lower costs as team members can access the company’s networked information from anywhere, embracing the increasingly expected (because cost minimising) BYOD approach.

What about the cost?

The costs of using SaaS are generally very manageable with the key advantage that levels of service access, data storage limits and the like, can be adjusted at any time. SaaS is commonly used to deliver business applications such as accounting programs, customer records software including management of orders or bookings and, for larger businesses, HR management software. Automated multilingual versions of documents can be included. There is obviously much lower up-front cost, as you are essentially renting rather than owning the asset, virtually immediate set-up and access as the applications are already fully configured in the cloud, and there are automatic updates and easily managed scalability, with plan upgrades (or capacity downgrades) adjustable on demand. This flexibility is a great advantage and there is essentially no significant hardware, software or server depreciation to be factored in.

Are there any disadvantages?

There are really very few disadvantages of SaaS. The initially understandable concerns around data security breaches are not really well-founded, as the enormous success of cloud-based accountancy provision such as Xero attests. However, the dependency of SaaS on uninterrupted fast internet connectivity, plus the potentially lower speeds compared to on-premise user applications can cause some occasional headaches.

When you are ready to choose your SaaS provider, then as with any contract it’s a case of ‘buyer beware’. As with everything, it’s easy to enter into a provision agreement but it can be much harder to exit it. In particular, carefully check the provisions for exporting your data to another destination of your direction if you leave that provider – and ensure that the export will be in a standard format which will enable it to port over to another SaaS provider.

Migrating data can be very costly in terms of time and money. That’s why it’s a good idea to move your own business data to a SaaS provider from the very outset or as early as possible. There is no definitive list of pre-eminent SaaS providers, partly because most of them specialise in a particular market segment. Request Service Level Agreements (SLAs) from a few providers and carefully cross-reference them, as well as verifying the vendors’ reputations and their customer reviews. Try to make contact with a couple of their clients directly and find out what they have to say about their experience of service reliability and technical assistance. Compare pricing plans and remember that if a provider’s prices and the promises seem too good to be true – then they almost certainly are!

Influencer Series: Matt Raad eBusiness Institute – How to start out on Flippa

Influencer Series: Matt Raad eBusiness Institute – How to start out on Flippa

This week, Flippa CEO Blake Hutchison sat down with Matt Raad as part of our Influencer Series to discuss buying online businesses.

 

Matt is the CEO and Co Founder of eBusiness Institute and with wife Liz, they have been recognised as Australian experts in buying online businesses. Their courses help students to look for businesses that they can buy and build and their platform of choice is Flippa.

In this video interview (see below) he reveals some key insights. In referring to their live events Matt remarked about the ease of using Flippa. “When we run a live event, we love getting onto Flippa and we do it unscripted. We are pretty much guaranteed to find a good deal” (2m:34s).

What are your favourite types of businesses?

“We like sites that sell advertising and the next level (up from here) would be affiliate sites, so sites where we promote a product and then (earn money) get a commission if someone buys it.” (3m.40s). Matt also discusses Ad Sense websites and the success he’s had with those. “It’s where we started and we have made a lot of money. What we are seeing now is that where those Ad Sense sites are in good niches, there is a lot of opportunity.” (3m:15s).

Should you be interested in the subject matter?

“It’s nice to start out in your passion but the reality is you don’t need to once you know how the system works” (5m.00s).

When it comes to website audiences Matt mentions that he loves finding sites that he can drive traffic towards. “On Flippa if we can find someone that’s owned a website for years and they were really passionate about it (but couldn’t figure out how to make money out of it) and they have a bit of an audience following, that’s gold. That is what we want” (4m:28s).

Blake and Matt spoke a little about Amazon and the various business models.

Matt remarks that he’s less familiar with ecommerce but that doesn’t detract from his ability to make money from Amazon. He likes affiliate businesses. Matt gives the example of a dog products reviews website. He notes that an Amazon affiliate revenue stream, in this example, is where reviews of a particular product might convert to an interested customer. In this case, interested customers click off and buy. Where they do buy, the website owner is paid a commission. “A reviewer might do a review of a dog bed and (on that basis) say to customers, ‘BTW if you are interested in this dog bed here is where you can buy it on Amazon’” (9m.38s).” If the customer then clicks this link it is tracked and Matt is paid a commission on the sale of between 4-8%.

For more information around how Matt buys websites on Flippa and monetizes them, watch the full interview below.

Matt Raad is the CEO and Co Founder of EBusiness Institute Australia, a digital training organisation and is passionate about helping others to buy online businesses. Check Matt’s website to learn more or you can connect directly with him via Linkedin.

Flippa Partners with Industry Leader for Amazon FBA Training

Flippa Partners with Industry Leader for Amazon FBA Training

Photo credit: https://www.businessinsider.com.au/its-still-day-one-first-photos-of-amazon-australias-melbourne-fulfilment-centre-2017-1

 

Guest blog by Jim Cockrum, founder of the Amazon FBA training course – Proven Amazon Course

 

Let’s start with an obvious observation.

 

Amazon FBA is hot!

Currently, Amazon FBA is one of the most wide open and most talked about business opportunities in the e-commerce universe! As a business model FBA benefits include:
    • Ease of launching from scratch
    • A short learning curve
    • A truly global opportunity
    • Very low capital risk required to get started
    • Very predictable growth if proper strategy is deployed
    • Favorable market conditions for future growth
    • Automation & hands free operation are possible
    • Creative resources are readily available to assist you
    • From day one you have a built in ravenous customer base

These factors and others make the Amazon FBA opportunity nearly impossible to ignore as a premier online business option.
 

What is FBA?

FBA stands for Fulfillment By Amazon. Most simply stated, you can ship your goods to Amazon warehouses and Amazon will sell and ship the product to the end customer for you.  You never even have to see or touch your inventory if it comes straight form a supplier or manufacturer! It’s one thing to understand what FBA is by reading Amazon’s own description of the program,  but it’s another matter entirely to build a successful, scalable, sellable business on the platform.

 

How much bigger will FBA grow?

FBA is in its infancy.  Amazon is building warehouses globally and is set to open soon in Australia as its latest conquest.

Consider these facts as well: According to U.S. government data, retail shopping online is still less than 10% of all retail spending in the U.S., but that number is projected to grow rapidly in the coming decade and could easily reach 25% in that short time.

In other words, most of the growth in e-commerce and Amazon FBA is yet to come – and it’s coming rapidly! Unless there is a major disruption of current trends, Amazon is clearly set to see incredible annual growth for years to come. That serves to substantially benefit those who are building FBA businesses on the Amazon platform. The opportunity is truly global as well because as an FBA business owner you can use our extensive network of partner services that accommodate every possible challenge in moving your inventory to where it needs to go.

 

Which FBA strategies are hot?

There are numerous ways to succeed with an Amazon selling business.
  • Selling your own private label product
  • Establishing relationships with wholesale sources
  • Sourcing unique products from small businesses that aren’t selling online yet, or are marketing themselves poorly
  • Bundling already popular products to make new listings
  • and many, many more…
Opportunity is abundant because customer spending continues to escalate on Amazon!

 

Why partner with Flippa?

Our FBA training team is delighted to have been contacted by Flippa in order to form a partnership that benefits those who wish to start or grow with the FBA model.  The Filppa leadership indicated to us that numerous Flippa.com users were making inquiries in recent months on the topics of buying, starting or growing an FBA business. As a result, Flippa began to research extensively and eventually came to the conclusion that we were the perfect FBA educational partner for their community. We are of course honored to form this partnership in order to better serve those seeking success with FBA.

 

About our Proven Amazon Course

No one in the world has served Amazon selling professionals (aka FBA sellers) for as long or as successfully as has the creative team behind the Proven Amazon Course.  We have our own publicly disclosed 8-figure online selling accounts that demonstrate our depth of knowledge of the platform. We’ve received over 1,000 documented success stories as well which all credit our coaching and course for having helped establish and grow incredible Amazon FBA businesses.

 

We have successfully assisted thousands of students with:
  • Launching an FBA business from anywhere in the world
  • Building private label brands on Amazon
  • Building a team for scalable growth
  • Finding creative sources of profitable inventory
  • Creatively marketing Amazon products through advanced Facebook strategies

 

We are delighted to partner with Flippa, and we’d love to hear from you if you are interested in learning more about launching or growing an Amazon FBA business.

 

 Proven amazon course_Flippa_Jim Cockrum

 

About the author:  Jim Cockrum is a best selling web marketing author and a seasoned Amazon FBA expert. His courses, books and coaching are the foundation behind thousands of Amazon seller success stories.  His industry leading course located at ProvenAmazonCourse.com contains numerous comprehensive modules for both beginner and advanced online sellers who are either launching or growing an Amazon FBA or Amazon merchant fulfillment business.  The latest update of his book, “Silent Sales Machine – 10th edition” is a consistent top 10 seller on Amazon in numerous e-commerce categories.
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Read more about Amazon FBA:

 

Craft the best listing description for selling your website

Craft the best listing description for selling your website

Writing the perfect website listing description may seem daunting for new sellers. This blog post will provide new sellers tips on how to best structure your listing description for an online business, and the do’s and don’ts associated with selling your business on Flippa.

Structure

When you write the listing description when selling your website, the structure of your listing is one of the most crucial parts of setting up your listing for success. Since establishing the website marketplace, our account management team has refined a listing structure which is easy to follow, and reduces the amount of questions buyers ask sellers during the auction process.

The following has been identified as the best structure for a website’s listing description:

  • About the Seller – Briefly describe yourself and your role in the website. Indicate whether you are the original owner of the business.
  • Business Model – Describe what the website does.
  • Reason for Sale – Briefly describe why you are selling the business.
  • Development – Briefly describe how the website was developed. This should include the programming language and any frameworks/platforms used.
  • Operation – Briefly describe what is required to keep the website operational. This should include an average time spent per week. Additionally you should indicate where the website is hosted.
  • Traffic – Briefly describe what country most of the traffic originates from, and the sources that generate the most traffic for the website.
  • Monetisation – Briefly describe how you generate revenue through the online business. Any peaks or troughs in revenue should be explained.
  • Expenses – Briefly describe the expenses required to operate the online business.
  • Reliability – Briefly describe how you are willing to prove your financials? Will you post a video walkthrough of backend earning reports? Will you provide live screen-sharing sessions to prospective buyers?
  • Marketing – Briefly describe what marketing initiatives you have used to establish the website.
  • Included in Sale – List the items included in the sale. Include any domains or social media accounts included in the sale.
  • Future Opportunities – Briefly describe what a buyer could potentially do to improve or grow the website.
  • Keep the lines of communication open – Let buyers know they can reach you in public comments or via private message if they have any follow-up questions.

Here are a few examples of websites that have sold with detailed listing descriptions:

Do’s and Don’ts

Don’t lie

When selling your website, lying or omitting items will almost always hurt you, as it is sure to come out in the due diligence process. It is crucial that all information you provide in the listing is accurate for the online business you are selling. All claims should be able to be verified by potential buyers on request.

Attach proof

Any revenue claims need to be supported by proof. This proof can be in video or image format. We also suggest providing proof of traffic and other claims you make on the listing.

Provide as much information as possible

Buyers want to have access to as much information as possible about the online business before they place a bid on it. Providing as much information as possible will allow buyers to have access to this, and reduce the amount of questions you will be asked throughout the auction process.

Don’t be rude

Be professional! Respecting potential buyers and the questions they submit is important to ensure buyers want to work with you. To ensure the auction process is smooth, ensure that you assist and support buyers during the auction period when they are deciding if the online business is right for them.

Be clear

Potential buyers of your website don’t want to be searching through your description for specific information about your online business. By using the structure provided above, and correct grammar will improve the quality of your listing.