Founded in 2009, Flippa is described as the largest platform for buying and selling online businesses with over 3 million users worldwide.
The company was built to help entrepreneurs exit. And for investors, it’s about ROI. . “It’s a classic case of buying to improve, investing for growth and generating returns on investment,” explains Flippa’s CEO, Blake Hutchison. “We exist to support hundreds of millions of entrepreneurs globally. Exits are not just for unicorns. We make exit and ownership accessible for all.”.
Online business for sale: A marketplace for buying and selling
An online business marketplace is pretty simple to use: sellers list their businesses on the marketplace, providing key details like how they make money, how the business works, critical operational metrics and their asking price. Buyers browse these opportunities, filter by criteria like price and industry, and contact sellers for more information. Sellers get access to a large pool of potential buyers and have a higher chance of getting the right deal for their business.Flippa’s pool of potential buyers includes over 6,000 family offices as well as institutional and strategic buyers worldwide, with over 20,000 new buyers being added to the platform every month. According to the company, the average deal budget is $2.1 million with overall buyer liquidity of $107 billion.
“The strength of Flippa lies in its community. With millions of engaged buyers and sellers, we’ve created a marketplace where opportunities for both sides are endless. Sellers can find buyers who truly understand the value of their business,” Hutchison said. Deals include everything from SaaS powered tech, e-commerce businesses, as well as blogs, YouTube Channels, AI, mobile apps and plugins. The platform represents the entire digital economy.
Here's how you can sell your business online
While selling an online business has a lot to do with money – getting the best price or highest valuation – there’s more to a successful sale than just the financial side. Factors like trust, finding the right buyer, and having a smooth transaction process are just as important. In addition to having a global buyer base with diverse interests, Flippa also has robust valuation tools that go beyond the financials of a business for sale. They look at traffic, customer engagement, and market trends, giving sellers a well-rounded view of their business’s strengths. Its ‘Flippa Data Insights’ tool, for example, allows investors and sellers to understand trending business models and categories, revenue and profit multiples.
“I did use Flippa’s valuation tool. I think it was the most helpful resource. That was what made me choose the Flippa platform,” shared Alvaro Lizaraso, who sold his startup, for $155,000 on the platform.
The platform also uses an AI-powered recommender tool for matching buyers and businesses, which has a track record of making over 10 million matches a month. Its proprietary matching algorithm uses an AI-powered graph neural network (GNN) to benchmark over 100 factors which determine a fit and relationship between buyers and sellers.
Addressing risk and seller support
Another key aspect of Flippa that sets it apart from other marketplaces is its built-in escrow service. This provides an added layer of security for both buyers and sellers by holding funds in escrow until the transaction is completed. It helps prevent fraud and ensure that both parties fulfill their obligations.Learning from success stories
Many entrepreneurs have successfully sold their businesses on Flippa, proving that the platform works for sellers across various industries. One such story is that of Spencer, a non-technical entrepreneur who built a software system and sold it for over $3 million on Flippa.His decision to sell came from his desire to diversify. Spencer did try to use platforms other than Flippa but soon found that they didn’t meet even his basic requirements. “There were no buyer profiles. No LinkedIn and very basic information,” he said. Flippa publishes full buyer profiles and mandates and allows business owners to shortlist and negotiate from within a secure deal room.
Once he was set up on Flippa, he met his M&A advisor, who provided support to not only navigate the sale but also to provide reassurance in times of uncertainty. “She was a real advocate, always in my corner, handling due diligence, and fighting for my interests,” Spencer explained.
Hugh Grossman, another example of successfully selling a business on Flippa, found his way to the platform in a different way. After being duped by his financial advisor, who mismanaged his retirement funds, Grossman took on the task of learning everything he could about directly investing his money in the stock market. This marked the beginning of DayTradeSPY, which sold for 7-figures on Flippa.
Other entrepreneurs like Mario Peshev and John Chen call themselves ‘Flippapreneurs’ because rather than start direct-to-consumer brands from scratch, they acquire small online businesses and grow their sales from a point of established traction. “Flippa gave me a career path that I didn’t even know existed. Buying these online sites, growing them, selling them…” said Chen. Peshev too has bought over 40 online businesses through Flippa and also facilitated the sale of 6-figure properties on the platform.
Rising demand for online businesses
Digital real estate is gaining the upper hand each day, especially in an era where businesses and economics have become more reliant on the web. During the pandemic, when we saw the rise of digital entrepreneurship, an off-shoot was a boom in more online business owners looking for a reliable, frictionless way to sell their businesses.Come 2024, Google Trends data shows that demand to ‘buy a website’ continues to have consistent demand over the past 12 months as well as the demand to ‘buy an online business’.
Flippa’s own data shows that digital assets like SaaS companies, artificial intelligence (AI) solutions, e-commerce stores and content are some of the most sought-after asset categories for investors.
Whether you're looking to sell a SaaS company, an eCommerce store, or a content site, Flippa’s robust infrastructure ensures that your business is not only sold but that it finds a buyer who will take it forward.
With Flippa’s commitment to helping entrepreneurs achieve meaningful exits, selling your business becomes less about the complexities and more about the opportunity. Whether you're ready to take the leap or simply exploring the possibility, Flippa offers the tools, resources, and expertise to guide you through the process. Below are answers to some of the most common questions from sellers:
FAQ’s:
1. How does Flippa value online businesses?
-Flippa uses benchmarks from thousands of sales to give you an accurate estimate. The algorithm takes into consideration business model, audience size, age, revenue and cost profile plus other metrics.
2. How long does it take to sell an online business?
-On average it takes 90 days but depending on the deal it can be shorter or longer.
3. Does Flippa have investors and buyers in India?
-Yes, there are 10’s of thousands of registered buyers and investors across India although there are also millions of buyers globally and many look for businesses regardless of location.
4. How much does it cost to exit and sell your online business with Flippa?
-There is a small listing fee plus a success fee. Check out Flippa.com for more details.
5. Does Flippa have M&A advisors for the Indian market?
-Yes, we have Indian staff and senior M&A advisors with substantial experience in India.
Disclaimer: This article is generated and published by the Insider Studios team. You can get in touch with them on insiderstudios@businessinsider.in