Flippa sellers: This tip will save you $500+ a month!
  • Success fees ...

    If you flip sites for $10k a month (which is what you should be doing in a month after your first flip - with help of this forum) and cover all Flippa's success fees, then you pay them $500 per month.

    Given that you flip sites that you buy for $500 and sell for $1,000, feature your listings a few time like any good flipper and spend a little bit of money on general improvements of the sites you flip, your total monthly profit after deducting the Flippa fees is about $3,000. If you could avoid the success fees, this would mean a 15%+ increase in profits! HUGE money.

    Ok. Most flippers split the success fees 50/50 with the buyer, but they still lose $250 per month!! (or a lot more if you do more than $10k a month).

    So how to avoid it? Easy. HAVE THE BUYER PAY IT!!!

    In all seriousness, I have never ever paid a single cent of success fees! And do you see me not getting enough bids or not getting my sites sold at BIN prices? Nope. And the sample isn't small, either - I've sold some 50-60 sites in total on Flippa, never paid success fees and never had my auctions go south. Pretty impressive, huh?

    And here's some reasoning behind this: most of the people who buy your sites aren't professionals - in most cases it's either the first or the second website they buy, and they definitely don't buy 10 sites per month. Meaning that, for them, the additional 5% is NOTHING - they don't even notice the extra $50 when they buy a $1,000 site from you. But for you it adds up very quickly and (especially with small margins) it can even turn a profitable flip into a loss.

    Try it - have the buyer pay the success fee when you put up your next auction, and if you see a noticeable difference in the number of bids your listing gets send me a PM and I'll buy your site myself. That's how sure I am in this.
    Post edited by Unknown User at 2010-08-25 09:59:59
  • Great actually I have always paid the fee, but I have also said to myself it can't be right.

    I am going to try it.

    Probably tomorrow when I am going to make a flip.
  • Great idea, looks like something to experiment with, but this thread sounds more bragging then infomational . . . =]

    Fruit
  • [quote="Fruit"]
    Great idea, looks like something to experiment with, but this thread sounds more bragging then infomational . . . =]

    Fruit


    Lol, shameless self plug eh?

    Don't worry guys, we have PLENTY of very exciting stuff in the pipeline for you all ;)
  • oh yeah... Thanks for bringing this to my attention. I have always chosen split fee without even thinking about it. And I was just thinking that if you put yourself in the average buyer's position, paying 2,5% or 5% is the same shit; they're not going to be grateful for your willingness to split the fees. Most people will think this is just the way it goes and if anything blame flippa for demanding a fee.
    Oh, and I've noticed a lot of listings using this, but I really don't see "pay no fees" as something that will make the buyer want the site more.
    just my 2 cents :)
  • I never think of that...I sold some sites and always used 50/50...but not any more.
  • nice I will be trying that every time! ;)