Woah, this quite an update. Apparently according to the update just received from Flippa Blog , Flippa is going to remove buyer success fee options. As stated, this step was taken to:reduced complexity for website buyers and improved auction performance for website sellers.Personally I believe this is great news for buyers and the reverse for sellers. Buyers will no longer have to think of any other costs and focusonly on the last bidding price.
The sellers on the other hand won’t be able to hide behind the buyer success options anymore.The process and the impact is as stated How Will This Happen?Sellers are no longer able to select the buyer success fee option when creating a listing as of today. Existing listings will continue to proceed with their existing success fee configuration.As a result, website buyers will see fewer and fewer listings with a buyer success fee component as time goes by. The “no buyer success fee applies”text will eventually be removed from listings altogether.
What Does This Mean for Me?If you’re buying a website, there is now one less factor to consider. If your budget is $5,000 then you can go right ahead and bid that amount without needing to worry about whether or not you need to cover any part of the success fee.If you’re selling a website, you need to ensure that you account for the success fee when pricing your website so as to cover your transaction costs. Logic dictates that any increase to transaction cost for sellers who previously used the buyer success fee option would naturally be offset by a higher bid amount.Note that the seller success fee remains otherwise unchanged: 5% of winning bid amount capped at $498 with a minimum charge of $5.I commentated on this post at Flippa Blog:I believe that this will have a direct impact on sellers, listing the site will require much more funds thus eliminating low price sites.
I doubt though that final bids are going to get higher but I may be wrong.If Flippa would want to keep the sellers from going away and see a better final price, won’t it be fair to just apply this rule on higher established websites only (min $1000 price).By doing so, big websites will have better final price while the smaller websites can continue to flourish.Generally, the sellers will be sweating hard right now and most buyers won’t really feel a thing. What do you think?