In the world of online business, selling and buying websites has become increasingly popular. Two platforms stand out as leaders in this domain: Flippa and Empire Flippers.
Flippa, founded in 2009, prides itself on its large user base. With a community of entrepreneurs, side hustlers, and small business owners, Flippa has made more than $375 million in sales by offering various website assets. Empire Flippers, on the other hand, established in 2013, has a smaller user base but a focus on high-quality, vetted assets.
Empire Flippers focuses on businesses valued between $25,000 and $5 million, while Flippa has a wider range of businesses, including those valued at less than $1,000. Additionally, Empire Flippers has a more rigorous vetting process for listings, while Flippa allows anyone to list a business for sale. However, Flippa has a lower commission rate of 5%, compared to Empire Flippers’ 15%.
Key Takeaways
- Flippa has a larger user base, while Empire Flippers focuses on high-quality assets.
- Flippa has more types of online business for sale while Empire Flippers focuses on Content and Ecommerce Sites.
- Empire Flippers usually sell higher-value web assets and have a better reputation overall.
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Flippa vs Empire Flippers
When deciding between Flippa and Empire Flippers as investment platforms, it is important to consider the types of online businesses they each offer.
Flippa provides a wider range of options, including SaaS businesses, eCommerce websites, content sites, mobile apps, and service businesses. In contrast, Empire Flippers focuses primarily on eCommerce and content sites, offering a more niche experience.
One key difference between the two platforms lies in their pricing. Flippa is known for its lower-priced sites, making it potentially more accessible for smaller investors or those looking for a wider range of investment options. Empire Flippers generally features higher-priced sites, catering more towards investors with larger budgets and those seeking more established online businesses.
In terms of support, Flippa provides assistance to sellers, promoting their businesses to a global network of buyers, including a private book of high-net-worth clients. Empire Flippers also offers support and expertise to sellers, ensuring a streamlined platform for connecting buyers with appropriate online businesses.
With over 6,000 listings, Flippa is an open marketplace where anyone can post an asset for sale. This may present a more diverse range of options for buyers, but could also mean an increased likelihood of encountering lower-quality listings. On the other hand, Empire Flippers generally offers fewer, more curated listings, potentially saving buyers time from sifting through less desirable options.
Asset Types
Content Sites
When looking at content sites, both Flippa and Empire Flippers offer a variety of options for potential buyers. Flippa provides numerous content site listings, which may range from blogs to niche content websites. Empire Flippers, on the other hand, focuses more on higher-quality content sites that generate significant revenue.
SaaS Businesses
Flippa is known for offering a wide range of SaaS businesses, from small startups to well-established companies. You can find diverse types of SaaS products in various industries on their platform. Empire Flippers tend to offer fewer SaaS listings, but those available are often revenue-generating and have a solid subscriber base.
E-Commerce Stores
Both Flippa and Empire Flippers have a substantial selection of e-commerce stores for sale. On Flippa, you can find e-commerce businesses of different sizes and niches. Empire Flippers also provide a curated list of e-commerce businesses, with a particular focus on larger-scale operations generating consistent revenue.
Mobile Apps
If you’re interested in purchasing mobile app businesses, Flippa offers a good variety in this category, from small-scale apps to those with more established user bases. Empire Flippers, however, primarily focuses on e-commerce and content sites, so its selection of mobile apps is comparably smaller.
Domains
When it comes to domain names, Flippa is an ideal platform to find a diverse range of options. You can find both premium and lower-priced domain names suitable for your project needs. Empire Flippers does not focus on domain names, so their offerings in this category will be limited.
Valuation and Vetting Process
Valuation Methods
When comparing Flippa and Empire Flippers, it’s essential to understand the different valuation methods they use. Flippa offers an online valuation tool where you can enter your online business’s details (revenue, traffic, etc.) to receive an estimated value. This tool serves as a starting point for estimating your business’s worth.
On the other hand, Empire Flippers has a proprietary valuation process based on proven industry metrics and multiples derived from their vast experience in buying and selling online businesses. They take into account factors like revenue, net profit, growth rate, and age of the business.
Due Diligence
A crucial aspect of buying an online business is performing thorough due diligence before committing. The vetting process differs significantly between Flippa and Empire Flippers:
- Flippa: When you want to buy a site on Flippa, you need to conduct your own due diligence. Flippa provides a platform where you can interact with sellers, ask them questions, and request access to data like Google Analytics and financial documents. It’s your responsibility to analyze and validate the business information to ensure that what you’re buying is legitimate and profitable.
- Empire Flippers: Empire Flippers takes the due diligence process very seriously and has a dedicated team that diligences every platform-listed site. They verify the website’s revenue, traffic, and other important factors by accessing the seller’s data directly. This thorough vetting process ensures that the businesses listed on Empire Flippers are legitimate and have accurate and transparent information for potential buyers.
In summary, the valuations and vetting processes of Flippa and Empire Flippers differ in their approaches. Flippa provides an online valuation tool for a quick estimate, but due diligence remains the buyer’s responsibility. In contrast, Empire Flippers has a robust vetting process carried out by their team, giving potential buyers peace of mind concerning the businesses listed on their platform.
Marketplace Features
Listing Fees and Commissions
When comparing Flippa and Empire Flippers, one of the primary factors to consider is their fees and commissions. For Flippa, there are three types of listing fees: Standard ($10), Premium ($29), and Ultimate ($119). The success fee on Flippa is 10% of the sale price, but it decreases to 7.5% for Premium and 5% for Ultimate listings.
On the other hand, Empire Flippers has a one-time $297 listing fee with a 15% commission on the final sale price. As you evaluate the costs, it’s essential to consider your budget and what fits your needs best.
Search Filters and Transparency
Both Flippa and Empire Flippers offer search filters to help you find the best sites for your investment needs. Flippa gives users a broader range of filters, such as:
- Business type (Content, eCommerce, SaaS, etc.)
- Price range
- Age of the site
- Revenue
Empire Flippers provides filters primarily based on:
- Niche (Health, Travel, Technology, etc.)
- Monetization method
- Annual net profit
However, Flippa’s platform tends to be more transparent when showing the performance of a website, along with its revenue and traffic data. Empire Flippers often require you to sign a non-disclosure agreement (NDA) before revealing certain critical details.
Post-Sale Support
After purchasing a website, it’s crucial to have proper post-sale support. Empire Flippers shines in this area, as they offer a dedicated team for website transfer and migration services. They ensure a smooth process and provide guidance throughout the transition.
In contrast, Flippa does not have a dedicated support system but provides 24/7 customer support to help with any concerns or questions that arise during the sale process. This makes Flippa a more hands-off platform compared to Empire Flippers.
Additional Online Marketplaces
Apart from Flippa and Empire Flippers, there are other online marketplaces you can explore to buy or sell websites and online businesses. Here are a few noteworthy options:
Motion Invest is a marketplace that specializes in content websites, primarily in the lower to mid-price range. They offer a curated list of income-generating websites and have an in-house team that conducts due diligence before listing a site for sale. This helps to mitigate risk for buyers and ensure the quality of listings.
FE International is a more established brokerage firm that focuses on the higher end of the market. They specialize in the sale of mid-market online businesses, typically ranging from $100,000 to $30 million. With a team of experienced brokers, they provide personalized support throughout the buying and selling process, making it a popular choice among serious buyers and sellers.
Website Closers is another brokerage firm that specializes in selling high-revenue online businesses in various niches. They have a team of experienced brokers who guide both buyers and sellers through the process and help them negotiate the best possible deals. Their service includes due diligence support and constant communication with all parties involved in the transaction.
Reviews and User Experiences
When considering Flippa and Empire Flippers as platforms for buying and selling online businesses, it’s essential to take into account the reviews and user experiences from the community.
On Flippa, you have the opportunity to buy sites at a lower price compared to Empire Flippers. Empire Flippers might be the choice for you if you are looking for a website with a valuation of at least $25,000, since they only accept businesses that earn a minimum of $500 per month in profit.
In terms of user experience, Flippa offers a large number of listings, allowing you to find diverse opportunities. Their user interface is straightforward, and the platform has a strong reputation for connecting buyers and sellers, with over $1.2 billion in available funds from their collective buyer pool.
Empire Flippers, on the other hand, is more focused on providing a high-quality, vetted selection of online businesses for sale. They pride themselves on their credibility and are known as a legitimate platform for buying and selling online ventures. Their expertise in selling ventures is based on their own experience as successful sellers, which fosters trust among their users.
When looking at reviews, it’s worth noting that both platforms have received positive feedback for their ease of use, customer support, and overall user satisfaction. However, some users have mentioned that Flippa’s large number of listings can sometimes make it difficult to navigate and find the right opportunity.
Concerning fees and commissions, Flippa charges a sliding scale commission based on the sale price. For sales between $1 and $49,999, the commission is 10%, while sales from $50,000 to $99,999 have a 7.5% commission. Finally, sales from $100,000 to $2 million come with a 5% commission. Empire Flippers has a different fee structure which you should research before making a decision.
To summarize, when choosing between Flippa and Empire Flippers, it’s important to evaluate reviews and user experiences. Both platforms have their advantages, and your choice should be informed by the type of investment, budget, and online business you are interested in.
Conclusion
When comparing Flippa and Empire Flippers, it is essential to consider your specific needs and goals as a buyer or seller of online businesses. Both platforms have their unique advantages, allowing for various options based on the size and valuation of the businesses involved.
Flippa tends to offer a wider range of businesses at different prices, making it a more accessible option for those new to buying or selling online businesses. Additionally, Flippa has an extensive buyer pool with more than $1.2 billion in available funds, increasing the chances of finding potential buyers or sellers.
On the other hand, Empire Flippers focuses on businesses with at least $500 per month in profit and a minimum valuation of $25,000. This ensures that the quality and profitability of the businesses listed on the platform are higher. Moreover, Empire Flippers is known for its due diligence process, offering the buyer a sense of security and assurance in their investment.
Frequently Asked Questions
What are the main differences between Flippa and Empire Flippers?
Flippa offers a broader range of online businesses, such as SaaS businesses, eCommerce websites, content sites, mobile apps, and more. On the other hand, Empire Flippers focuses primarily on eCommerce and content sites. Also, Flippa has lower valuations, making it possible to find cheaper websites compared to Empire Flippers, which has a minimum valuation of $25,000.
Which platform is better for buying and selling digital businesses?
Both platforms have their advantages and are suitable for different investors. If you are looking for a wider range of online businesses and lower valuations, Flippa may be a more suitable choice for you. However, if you prefer a more focused selection of businesses and higher valuations, Empire Flippers might be the better option.
How do the fees compare for Flippa and Empire Flippers?
Flippa typically charges a listing fee, which varies depending on the type of asset you’re selling, and a success fee between 5% and 15% of the transaction amount. Empire Flippers, on the other hand, has a fixed 15% commission fee on the transaction amount.
What is the level of customer support provided by Flippa and Empire Flippers?
Both platforms provide customer support to assist with transactions, but their approaches differ. Flippa provides support and connects businesses to their worldwide network of buyers. Meanwhile, Empire Flippers offers a more personalized experience and a dedicated account manager for each transaction.
How reliable are the valuations provided by Flippa and Empire Flippers?
While both platforms strive to provide accurate valuations, the reliability may vary because they cater to different types of businesses. Flippa has a wider range of businesses, which can make it challenging to ensure consistent valuation accuracy. Empire Flippers’ focus on specific types of online businesses may make their valuations more reliable since they deal with a more narrow market.
Which platform has a better success rate for transactions?
Success rates may vary, as they can be influenced by many factors, including the quality of listings, buyer preferences, and market conditions. It’s essential for both buyers and sellers to conduct their research and due diligence before engaging in transactions on either platform.