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What determines selling price on Flippa?

by funkdoctor
5 replies
Whatup,

Just wondering.. what determines the amount you can sell a site on Flippa for?

I've heard people say 8-10x monthly profit.. not sure how true that is but it appears to be somewhat accurate after browsing sold listings.

Do other factors generally increase the price? For example, unique software sold with the site, etc.

Peace,
Funk Doctor
#determines #flippa #price #selling
  • Profile picture of the author Taylor French
    That isn't even remotely true these days. Most people are lucky to get 2-3 times monthly profit. It's definitely a buyer's market on Flippa right now.

    Unique software could increase the value, but it's a better idea to not put a BIN at all and let the market decide what a site is worth. You can always put a BIN price in later, once you've gotten an idea of what people might be interested in paying.
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    • Profile picture of the author funkdoctor
      Word. The site is quality but I'm looking to sell it to focus on another project. Figured I'd try to get an estimate so I had something to shoot for in monthly profit before I listed
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  • Profile picture of the author CDarklock
    Originally Posted by funkdoctor View Post

    I've heard people say 8-10x monthly profit.. not sure how true that is but it appears to be somewhat accurate after browsing sold listings.
    In general, you can expect to sell a site with demonstrated traffic and revenue for 8 to 10 times monthly profit, even if you're a bad salesman - provided your traffic and revenue sources are likely to continue uninterrupted after the sale.

    A lot of people are actively pushing and promoting their sites in the near term, creating a spike in activity, and trying to sell for 8 to 10 times the spiked profit. This doesn't work.

    The best BIN strategy I've heard yet is to start a 7-day auction, then add a BIN of two or three times the highest bid on day 5. This won't hurt the existing bids, leaves plenty of room for new bidders to slip in for a "bargain," and it's entirely possible an existing bidder will pounce on it.

    Disclaimer: I don't flip sites, but I have several former clients who do.
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    • Profile picture of the author funkdoctor
      Originally Posted by CDarklock View Post

      In general, you can expect to sell a site with demonstrated traffic and revenue for 8 to 10 times monthly profit, even if you're a bad salesman - provided your traffic and revenue sources are likely to continue uninterrupted after the sale.

      A lot of people are actively pushing and promoting their sites in the near term, creating a spike in activity, and trying to sell for 8 to 10 times the spiked profit. This doesn't work.

      The best BIN strategy I've heard yet is to start a 7-day auction, then add a BIN of two or three times the highest bid on day 5. This won't hurt the existing bids, leaves plenty of room for new bidders to slip in for a "bargain," and it's entirely possible an existing bidder will pounce on it.

      Disclaimer: I don't flip sites, but I have several former clients who do.
      Thanks for the tip!

      I'm working on several traffic sources right now, but presumably the majority of traffic will be PPC. I assume I should have no problem qualifying as "uninterrupted traffic" if I share my keywords w/ conversion rates (including the awfully converting keywords I paused).
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  • Profile picture of the author patricialin
    Definitely 8 to 10 times the monthly profit.. Of course, you need to support it with stats or evaluations that it is able to make that amount on a consistent basis.

    If you are talking about a brand new site, it's really your call to determine how much you wish to sell. I have seen some ridiculous listings where a brand new site sells for USD600 with no income and no traffic.

    Other add-ons that you are able to provide will definitely increase the value which in turn can help you fetch a higher selling price.
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