Flippa: No more potential websites
Just a small update that I missed from Flippa Blog. Apparently the rules
about potential revenue websites claim have been tightened and dual
listings is now allowed for private listings but not for auctions on
websites and domains.
Since Flippa’s inception, we have required any website or domain for sale
on Flippa to be an exclusive listing.
The reason for this is that if a website is being auctioned in more than
one marketplace (do others exist?!), the winning bidder in one marketplace
will not win the site. Because of our dual listing rules, bidders on
websites for sale on Flippa can be confident that once an auction has
passed reserve, the highest will secure ownership of the website.
So what is the rule change?
While dual listings are clearly not workable for auctions, it can be done
for private listings as the seller is simply receiving offers from
prospective buyers. Website buyers never know what other prices are being
offered and as a result there is no transparent competition between buyers.
While our sales stats indicate that a website is three times more likely to
sell at an auction than at a private sale, these private sales can arguably
be listed in multiple locations without upsetting any price mechanism. In
recognition of this, we’ve limited our
dual listing rules to apply to website/domain auctions only
Potential Revenue Claims and Guarantees
Our recent blog post on the value of potential revenue drew a range of
For all the debate, there was little, if any, defense of the practice of
putting seemingly firm figures on potential revenue or traffic. While
Flippa has always required sellers to provide workings for potential revenue or traffic, we’ve
updated the Flippa Site Rules to make this more explicit and reduce any
risk for buyers. Note that simply multiplying Google’s search volume for a
keyword by Google’s PPC price for that keyword is obviously NOT sufficient.
We’ve also added that claims to specific potential revenue or traffic
numbers are expressly forbidden in listing titles.
There was furthermore no active defense of buyer guarantees. In addition to
this, buyer guarantees are both legally complex and ultimately not
enforceable. In the interests of buyer safety, buyer guarantees are no longer allowed on Flippa.
Depending on the significance of the violation, listings that we find to
breach rules will be suspended or otherwise corrected by our support team
without notice. Eg a title of “Website with potential to earn $10,000 per
month with #1 keyword in google guaranteed” will end up as “Website”).
Most readers will not be directly impacted by these changes: private sales
are only a fraction of websites sold on Flippa and most sellers are already
doing a great job of avoiding blatant potential revenue/traffic puffery. We
like to think that these changes will indirectly enhance the Flippa
experience for everyone as a result of more flexible listing options for
website sellers and a dependable purchase environment for website buyers.