By Tracey • Jun 10th, 2009 • Category: Site Flipping

Flippa.com - What Does The New Sitepoint Marketplace Mean For Flippers?

flippaIt’s almost here. I got up this morning to an email inviting me to preview, Flippa.com,  the new Sitepoing Marketplace.  Since I first heard the announcment of impending change, I’ve been more than a little worried.  When something you have been using for some time to make money announces changes, it’s bound to give you the wobblies!

So now that it’s here, what’s does the new marketplace mean for sellers?

On the upside, it’s a clean interface that follows a pretty typical web 2.0 design. Easy to navigate and manage, the site is pleasing to use. Though it’s a far cry from what marketplace users are used to, for most there shouldn’t be any problem making the transition to the new marketplace.

The big question is, why the need for change at all? The old marketplace worked fine for everybody and as they saying goes “if it ain’t broke, don’t fix it”.

The rationale for change most likey comes down to money. The new price structure which sets $19 as the flat fee for all listing seems unjust.  I don’t believe that somebody listing a website for $300 should pay the same listing fee as somebody selling a site for $30,000.  Typically startup sites sell for far less than established sites, so those operating in this part of the marketplace are bound to feel the impact.

Add to this the 5% success fee and those selling at low cost will find quite a large chunk of their profit diminished.

For short-term flippers, particularly blog flippers selling at the popular $297 price point, the price hike adds an extra $25 onto the cost of flipping a $297  site. For those selling below $100, as many are, I don’t see how they could continue.

The positive side of the increased listing fee and success commission, is that it might filter out the low quality websites and sellers operating at this end of the market. This may bring healthy competition back at sustainable prices for quality sellers.

Secondly, as a standalone web property, seperate from the Marekplace, Flippa.com is a far more valuable assest to Sitepoint owners.  It could be sold on for a considerable sum if desired.  It seems only logical that a site that facilitates sellers to flipping web properties for considerable sums, would not themselves cash in on this, or at the very least set themselves up to have that option!

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