Saturday, October 10, 2009

Flipping Wesites - A Review Of Flippa

. Saturday, October 10, 2009
By Deschain Anderson

The hot topic of conversation on most of the forums seems to be website flipping. It's quickly working it's way up the ladder to becoming one of the most popular business models among internet marketers. Site flipping is similar to flipping real estate in that someone takes a piece of property, in this case it's virtual property, they add value to it and they quickly sell it to someone else. At a profit, of course. And that's what it's all about - money.

If you've gathered up the courage to jump into the site flipping arena, you've probably hear about, or even experienced, a site called Flippa. They are an online auction service that specializes in virtual property - websites, blogs, membership sites, domain names, etc. You go through a simple sign up process with them and then you can buy and sell whatever you want.

Their auction system is similar to eBay's in that you pay a listing fee, you can set time limits on your auctions and you can set minimum bid amounts and reserve limits. They even have some semblance of a feedback system in place to rate buyers and sellers. But that's about where the similarity ends.

For one thing, Flippa has a barely minimum verification process in place. When you first register with them, their method of determining that you are who you say you are is to send a code number to your telephone. When you receive that number on your phone, you enter it into the little box and they say, Yep, that really is Santa Claus. Give that guy an account! The only other verification they do is to have you install a code number in the root of your website when you list it to prove that you own it. I'm not a programmer, OR a hacker, so I guess I'll accept THAT one at face value.

At this point, buying and selling on Flippa is a little like stepping into a street brawl. There are no monitors, there are no rules. It is survival of the fittest and you better be on your toes. Whether you are buying or selling, they have no control process in place, no monitors watching the listings, to prevent the person on the other side of the transaction from lying, cheating, and manipulating listings and pretty much just giving you their best shot right below the belt. Sites that are less than 24 hours old are listed as Premium Domains. Blogs that are nothing but the default Wordpress theme and a couple of PLR articles are listed as Unique, Customized Websites. And buyers will swoop in at the last minute to win the auction, then, after they've uploaded the site, they'll file a dispute so they won't have to pay for it.

Flippa's non-management of comments and feedback leave the sellers totally at the mercy of the buyers - with their neck's exposed! Comments are not monitored at all and ruthless scammers like to dive bomb listings in an attempt to keep the bids down so they can swoop in at the last minute and get those sites for themselves. Deleting negative and spammy comments, though, only makes the seller look like they have something to hide. And feedback? That's a joke. Sellers are motivated to leave feedback in the hopes that the buyers will actually PAY for the site and maybe leave them a kind word in return. What motivates the buyer to leave feedback? Nothing. You're lucky if they actually PAY you.

Have you ever actually bid on a site at Flippa? Have you noticed that the auction never seems to end? There never seems to be a winning bidder. If an interested bidder plops down an offer within the last hour of the auction, they automatically adds 4 hours to the length of the auction. In the meantime, buyers and sellers alike are left wondering what just happened? Is it over or not?

For a site that, according to their own PR, processes sales totaling well over a hundred thousand dollars a week, you would think that there would also be some control over the transaction. But the are not concerned if the site and the money ever change hands. They got their listing from YOU when you listed the site. They will, at the end of the listing, bill you a slight seller's fee. But it's up to the seller to track down the buyer and collect the money. Or it's up to the buyer to track down the seller and collect his website. Filing a dispute with them over non- payment or non-receipt issues often results in, We're sorry. Your particular dispute has never been an issue before. We don't know what to do. Dispute discontinued.

It seems to me, that with the growing interest in site flipping, there should be a better alternative than Flippa. Where is the protection for the sellers? How does a buyer know who to trust? There must be a better way! There are other auction sites out there, but, believe it or not, they are the best alternative for the time being. But I've been watching the listings a lot lately and sites are on there for days and days and never get a bid. Are the buyers getting smarter? Maybe. The buyers looking for quality are. But I think the SELLERS are getting smarter. I think the quality sellers are finding better ways to conduct their business and they're pulling their buyers along with them. I think site flipping is about to move onto a whole new playing field.

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