Is this how Flippa really works?

Essentially, yes it should. Except, it's easier said than done. A lot of websites are sold on potential; potential that may or may not work out. Sometimes, sites making money dip in revenue instead of growing and so when you flip them, you might net less than what you paid for said site. Lots of variables, but if you were to sum it up, that's how it SHOULD work assuming everything is optimal.

Yes, essentially this is how Flippa works. Or come to that any business.

It is basically a platform for sellers of websites, a bit like Ebay is for a multitude of items. However, as already pointed out by Steve, you have to be very careful what you buy.

It is only like buying a business offline, you have to do a lot of due diligence on that business. You would be as well to spend a bit of time on Flippa to get an idea of what sort of prices certain websites sell for.

One thing to be aware of is any income claims that a website owner is making. You need to check these very carefully. If you are serious about purchasing a website with income you need to find out how this income is being generated and where it is coming from.

At first site a website generating $1,000 a month in income may appear to be a great buy. However if the owner is spending $1,500 on PPC advertising then the situation radically changes!

Also, similar to Ebay, Flippa have a feedback system, so you can check a seller's previous history. Check this very carefully and do not be afraid to ask if you can talk to previous buyers.

You also need to check any traffic claims, it has been known for sellers to "buy" traffic just to make their site look busy before a sale. Find out how traffic is generated by the site you are interested in and then go and verify this yourself. Remember,Alexa can be very useful

The above is just a few checks you need to make, there are many more. But hope these get you thinking!

Simon

That is part of it. Or better that is one way to use Flippa.

There are other ways.
For example you can use Flippa to do research.

This option is up to you, you either keep the site indefinite, allow it to expire or resell it.

However, i strongly advice you learn the act of buying a truly profitable website on flippa before indulging.

Yes, that is one way Flippa works. Other way is you buy a domain name and web hosting and start a website from scratch and in a few months sell it.

If a site is genuinely making $1K/mnth, I doubt that the seller is going to let it go for a few thousand. If he/she is, there may be a reason.

Income may be declining
Site may have suffered from all of Google's shenanigans
Stats on traffic and revenue could be fake
Costs of running site are high
Etc.

Be careful and verify income and traffic. Here's a guest post I did for Flippa on due diligence.

Guest Post: the Domaining Diva on Due Diligence | Flippa Blog | The Home of Web Entrepreneurs

That's how some people do it. However, be sure you don't get scammed by shady sellers. Also, when you sell, be on the lookout for people who will bid high, get the winning bid, then disappear.

Make site. Fake traffic. Sell to stupid noob on Flippa. This is a great way to make money

Agree that you should start your own money making site first, then you'll be aware of so many of the issues surrounding what's for sale on Flippa.

Well, that’s Flippa for you. It is an excellent way to make money online. But if you’re buying a site, make sure that you verify all the facts and figures that the seller is telling you. Most of them are just exaggerating. Those skyrocket high digits can always decrease, too.

A few years ago I did quite well with Flippa selling really basic blogs, but I've actually left Flippa behind now because you have to put a lot of time into weeding out the garbage and just building and selling isn't how it used to be either.

It is much safer to develop your own site and drive traffic to it than taking the risk of buying a site on flippa that claims income.

Most of the sites I have seen on flippa the income has come from promoting to the sellers list or as a wso etc. It usually means that although the income claims are true at the time it will usually dry up pretty soon.

Make sure you ask the seller not only for proof of income but where the sales came from.

Anton

Yes , that is how Flippa works.

Most builders and flippers use the site to earn.

i have history on Flippa about 5 years old now and the main thing i can tell you, quality there is FAR LESS than before, my first two years.

ONLY deal with established sites that have been around 12+ months unless GREAT reason or confidence in another buy

I prefer to keep my sites for long term income but buying a website and selling again in the future on flippa is entirely possible.

It's not something that should be rushed into though, you would need to do lots of research and planning or you could end up spending lots of time on it and then selling it for less than you paid originally.

Much better to build a site, build traffic anr or revenues, then flip it. You can risk thousands to buy a website and build it up to resell it for more. But that will take more investment and it is a risk.

I have way more time than money, so I would rather build a site and then flip it than buy one and try to build it greater and then flip it.

But that is just me.