Increasing Your Sell Through Rate At Flippa

Increasing Your Sell Through Rate At Flippa

Posted on 24. Oct, 2009 by Michelle in Site Flipping, Virtual Real Estate Development

Anyone who has ever experienced the excitement of putting up their first website for sale will know that excitement can quickly turn into worry when the auction doesn’t attract any quick bids or general interest. Following on from that can be feelings of rejection and you might even begin to think that selling web property “doesn’t work”. This situation  can leave you completely demotivated and wanting to stop selling sites altogether.

I covered a little bit about the odds of selling in my Fail To Succeed post and I emphasized the fact that your sites won’t sell first time every time. Even though I’ve pointed out the reality that not every site will sell, that doesn’t mean you can’t aim for and actually achieve a better than average sell through rate. Flippa’s average sell through is 35% but it is just that, an average. There are some sellers averaging a sell through of 50-80% and some less than 20%!

In this post I’m going to cover the things I believe you need to focus on to increase your chances of a high sell through rate on your Flippa auctions for start up blogs.

When building start up sites to sell (sites with no traffic or revenue to speak of) I like to aim for the site to appeal to as broad a range of potential buyers as possible. If I can appeal to a variety of buyers then my chances of the site selling are markedly increased.

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Just like a restaurant who offers kids meals, vegetarian options and meat lovers pizza will appeal to a wider audience, so too will sites that show off great graphics, reasonable amounts of content, attractive domain names etc. The key is ensuring that the sites you build tick as many of these boxes as possible. Some buyers are only interested in the site looking good whilst others want the site to look good and to be in a very hungry niche. Other buyers will be looking for great domain names and some will want the whole package including high quality unique content.

If you solely focus on selecting a popular niche then you are limiting your potential buyer pool. If you focus on design and unique content but put the site on a .info domain then your site won’t be all that appealing to those buyers looking for good domain names. There is a time and a place for narrowing your sites for sale down to one type of customer but for the dime a dozen start up blogs that many sellers offer, I suggest you try to focus on appealing to a broader range of buyers. In other words offer kick butt graphics, premium themes if you have a license, .com domains, unique content and even a PLR (private label rights) ebook sold from a mini sales page within the site.

I’ve had buyers who were attracted by the ‘complete’ package and that is very satisfying knowing they can appreciate all aspects of the offer. But I’ve also had buyers who took the site to pieces and the only recognisable part left was the content. It can be frustrating to think you put in a lot of effort into a design only to see it tossed out, you wonder why you bothered when the site would have sold without it. Well in hindsight of course you can say that, but the thing is you can never be certain what types of buyers are browsing the listings at any given moment. I had a buyer toss out unique content, but that didn’t mean I would create all future sites with PLR because if I did I  would cut out those buyers looking for unique content.

At the end of the day you really need to consider the following points and aim to appeal to the various buyers who focus on one or all of these aspects:

  • Domain Name
  • Design
  • Market/Niche
  • Content
  • Monetization
  • SEO

Here is an example of a start up blog that I aimed to cover all of the above components: Meditation Mindfulness. And now an example of a site where the design was not premium and the content was PLR, subsequently I priced this site at around a third of the meditation site: Healthy Eating.

It’s very easy to fall in love with your sites as you build them and to convince yourself that they’re worth hundreds and hundreds of dollars but not everyone sees and or appreciates the opportunities you’ve built in although that being said it’s VERY important to have effective sales copy in your auction listing but more on that another time!

If you over price your listings at the outset you miss the opportunity that being at the top of the listings page brings which is more eye balls! All too often I see people panicking a day or two into the auction realising that the site could be over priced for the current market conditions and then adjusting their reserve and BIN. Don’t worry if this sounds like you, I’ve been there too, it’s not an exact science (I’ve said that before right :) ) but don’t work against yourself by putting up very unrealistic prices and then trying to play catch up after the horse has already bolted. But don’t get me wrong, there are no guarantees no matter how much you do and often you will need to adjust prices as you go along but hopefully not by $100 increments. The idea I’m trying to get across is that there are things you can do to try to increase your sell through rate. Thankfully at Flippa, any unsold sites do move into the private sale listings at no extra charge.

So now you’re probably thinking: “Oh come on! If I put all this time and effort into these sites and try to tick all these boxes I’ll end up working for less than minimum wage! Forget it!” Well that can be true at the outset. If you’re learning FTP, WordPress installations, transferring sites and pretty much a newbie to either Internet marketing and or selling web property then yes, the rate of return per hour of time invested can be low. This type of thinking will undo you, see you quitting and believing that selling sites isn’t profitable. Everything takes time to learn and if you don’t have the time or inclination to dedicate to what you need to know then you will find it unpleasant and unprofitable indeed.

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If on the other hand you feel you want to invest in your knowledge, practise what you learn over and over and gradually increase the speed at which you work then you’ll have a good chance of making money from this model. :)

Remember that I’ve covered only one type of site in this post, there are many variations of web property that you might like to sell and I’ll cover some of those in future posts.

If you have any questions about this particular model or anything to do with developing virtual real estate leave a comment and I’ll do my best to answer it for you.

22 Responses to “Increasing Your Sell Through Rate At Flippa”

  1. ScottNo Gravatar (2 comments)

    24. Oct, 2009

    I like the paragraph about working for minimum wage, yes it will certainly feel like that.
    But as you say Michelle, you learn about FTP, installation, transferring sites and Internet Marketing. This is all knowledge that can be packaged up and used elsewhere.

    Multiple streams of income comes to mind!

  2. Alex - Affiliate MarketingNo Gravatar (2 comments)

    24. Oct, 2009

    Ok, I have to tell you a funny story. I never sold any site before, but I had too many projects on hand and decided to sell some of my sites. Now, all of the sites are money earners as I don’t have problem with building earners, but I see profits everywhere and kind of spread my self too thin!

    Funny thing is, I listed my site on flippa, and I got 14 bids, but they were very low, and i had a reserve, but you see, it says on there accept or decline, well I declined all of them, I did not know you had to accept, and they continue bidding. :) funny right!

  3. MichelleNo Gravatar (309 comments)

    24. Oct, 2009

    @Scott Thanks for pointing out that the knowledge gained can be transferred to other business models, that is a very important point and one that I just take for granted. Thanks for stopping by and leaving a comment. :)

    @Alex That is a funny story but I hope your misinterpretation of the way the bidding approval worked didn’t mess up your auction. :(

    I know the feeling of seeing profits everywhere, that is so true!

  4. ForestNo Gravatar (25 comments)

    24. Oct, 2009

    Thanks Michelle,

    Great article as always. My recent flips have benefitted a lot by makings sure PLR, Premium design and broad popular subject are all uses…. As you mentioned.

    Hoping to get onto some longer term flips with traffic and revenue soon.

  5. Donnie @ Chattanooga Web DesignNo Gravatar (7 comments)

    24. Oct, 2009

    Working on my first Web site Flip. Thank to the information on this site including this article, I feel like I am ahead of the curve.

  6. Alex - Affiliate MarketingNo Gravatar (2 comments)

    24. Oct, 2009

    :) yeah it did mess up, but at least now I know.

  7. Jim MaginityNo Gravatar (1 comments)

    24. Oct, 2009

    Very good advice! Since I have been following you I continue to learn. Have a site or two that I will try flipping in the months ahead, keep up the good advice and thanks!

  8. MichelleNo Gravatar (309 comments)

    25. Oct, 2009

    @ Forest it’s great to hear you’ve been ticking plenty of those important boxes. Your sites are always very well designed and they stand out from the crowd which is fantastic to see.

    Sites with traffic and revenue are definitely easier to sell, good luck with the auctions when the time comes. :)

    @ Donnie great to hear, I hope all goes smoothly.

    @ Alex, there are always great lessons to be learned from anything that doesn’t go to plan. I bet you never do that again huh. lol!

    @ Jim I’m glad my articles are helpful to you. Thanks for stopping by. :)

  9. Mike TaylorNo Gravatar (2 comments)

    02. Nov, 2009

    I agree 100%

  10. MichelleNo Gravatar (309 comments)

    05. Nov, 2009

    Thanks for your comment Mike.

  11. Ruth - Web Career GirlNo Gravatar (17 comments)

    05. Nov, 2009

    I’m finally getting around to leaving my comment here, even though I did read this a while ago…

    I just want to say I love the way you look at things. I many ways I have the same ideas, but I wasn’t looking at it in terms of pleasing as many different buyers as I can in one go.

    I am switching my strategy a little with the sites I’m selling. I can’t do it yet since I need to get rid of a few old domains yet. But from then on I’m definitely taking all these factors into consideration.

  12. MichelleNo Gravatar (309 comments)

    06. Nov, 2009

    Thanks for your comments Ruth. You’re doing great with your sales so far and I’m sure any attempts to improve things even more will surely add to your success stories.

    Narrowing down to a particular type of buyer can be another strategy too but for start ups, particularly niche blogs, I’d say definitely appeal to as many types of buyers as you can.

    I love your updates on your blog so keep them up, it’s motivating to me to see you taking so much action.

  13. RebeNo Gravatar (13 comments)

    07. Nov, 2009

    Michelle, what about selling domains? Where would you recommend?

    A client of mine wanted a simple site as a brochure for her imported items; she is now liquidating/closing her business. The site was built using Register.com template. I’m not clear what is the best way to try to help her recoup her investment:

    1) sell the domain only? or 2) sell domain and site?

    It’s a very minor niche with <700 unique hits per month, a PR2 (used to be PR3), and a page 1 Google listing for its keyword/domain name.

    Any suggestion greatly appreciated. :)

  14. San Diego SEO ServicesNo Gravatar (2 comments)

    14. Nov, 2009

    I’m working on my first flip too. Nice work on this article Michelle – very complete, and very helpful.

    My flippa listing is site that is an established earner. I’ve had a few watchers and one bid, yet with 4 hours left in the auction now, I fear it won’t sell…!

    The listing is here: http://flippa.com/auctions/78318/5PCom-com-Turnkey-VoIP-Reseller-Business-Available

    What I am I doing wrong? I realize the sales letter is loooong, but i thought that eliminate uncertainty…Any input would be appreciated.

  15. MichelleNo Gravatar (309 comments)

    15. Nov, 2009

    @Rebe I’m not sure what the register.com template is that you refer to and whether it would add or detract from the perceived value of the site. I don’t have any experience in domain selling, only complete websites. With some traffic and page rank it will stand a better chance of selling. I would simply list it up and see what happens. You can always set a reserve and see an auction through, if it sells great, if not then you can discuss next steps with the owner and whether she is willing to reduce the price etc. I hope that helps.

    @San Diego I’ve had a look at your listing, sorry to see it didn’t sell. You might still get private offers. I’m surprised in some ways it didn’t sell, especially for the final BIN you put up. From all the studying I’ve done, it’s very typical for a money site to sell at least for ten times monthly income, sometimes 12 times and of course lots of other values based on traffic etc.

    My first response to the listing though was that the concept/the actual business model, was too difficult to understand. You have done your best to get down in the listing all the ins and outs but I am still not clear exactly how it all works.

    One glaring question to me was whether you have the legal right to transfer the license to someone else. You probably do but I’m just pointing out that it was a question I had. If I was seriously considering the site I would have happily asked about that.

    If this were my site here’s what I’d try:
    Create a video tutorial of how the site works, how the income is generated. ie Do a search, arrive at your site, show the activity of a visitor that would lead to the income etc. I understand there will be certain things you can’t show but show as much as you can. It is a little out of the box so you need to go to a greater extent to explain things. In the copy you tried which was great, maybe a video will be less cumbersome for the buyer to get through?

    Once you have a good tutorial set up I would relist the site as a new listing and would pay for a feature up grade too so it appears on the front page. Ensure you list when America is awake. Of course there are no guarantees but money sites tend to sell well but if there are doubts then you’ll attract lower bids due to a feeling of risk in the buyers’ minds.

    I hope that helps and don’t be too worried about the site not selling first time. It just needs someone who can grasp what the business is actually about, how it ticks over etc.

  16. San Diego SEO ServicesNo Gravatar (2 comments)

    21. Nov, 2009

    Michelle,
    Your reply was awesome…

    The Good News:
    I have now accepted an offer for almost exactly 10X revenue…12X would have been nice, but since this had been a back burner project with trickle money coming in, it will feel good to get a chunk of $ and move forward.

    The Bad News:
    Unfortunately, I had not seen your fairly ingenious reply and suggestion of making a quick vid, which I could have easily done with Cam Studio, until after accepting the offer…I now wonder how much more I could have gotten…?

    Also, the buyer wants to use escrow.com, and she is having a purchase agreement drawn up to protect herself. I am just a little concerned now that in the legal-ese language of the agreement, she doesn’t bury some loop hole that could be a set up for a fraudulent transaction etc.

    So instead of instant payment by PayPal, I am having to wait until after the signed agreement is in place, and then payment will be pending the escrow process etc.

    Anyway, as long as the sale is successful and doesn’t drag out for more than a few more days, I will be happy. Thanks again for your input!

  17. MichelleNo Gravatar (309 comments)

    21. Nov, 2009

    Great news that you have a buyer! Ten times for a complicated set up such as yours isn’t so bad I think but I know what it’s like to be left wondering ‘what could I have got’. Try not to think about that too much, if the buyer is legit you can enjoy the lump sum of cash coming your way and not feel as though the site is being neglected.

    As far as escrow, I would not accept any other payment method for a sizable transaction so that is a good thing. PayPal would not protect you one bit, every digital transaction via PayPal is at risk of the buyer creating a charge back. With escrow the buyer has to place the funds into escrow before you release the domain, once you do so escrow can see the domain details and they will release funds to you so don’t worry about the security side of that.

    In terms of the legal agreement, I would go over it with a fine tooth comb and if in any doubt try to find some qualified help to take a look at it.

    Good luck with the hand over.

  18. KiranNo Gravatar (9 comments)

    27. Nov, 2009

    Hey Michelle, awesome post!

    I was just wondering, even though you have every criteria in place, some sites may not sell. So, do you recommend re-listing them for 30 days on flippa now? The free listing has been taken off by flippa.

    At least with the 30 days, you stand a chance to sell the site.

    Initially, I list my sites for 7 days.

    Your thoughts would be much appreciated

    Thanks

    Kiran

    MichelleNo Gravatar (309 comments) Reply:
    November 29th, 2009 at 5:05 am

    Kiran I’m really disappointed in this recent change that Flippa brought into place. I felt there was a need to remove the free relists from the new listings tab at Flippa but to remove the option to list for free altogether was not something I expected them to do.

    You ask a great question and I guess there are two ways I’m looking at this. I tend to enjoy setting a site up quickly and moving it off my radar quickly, meaning I want it sold and transferred so I can concentrate on other things instead of having to rethink a strategy for the site. Of course that is idealistic (something I continually have to work against being ;) ). I still aim for a quick sale and even more so now I know there would be further investment required to give a site a new listing. I’m confident in my skills and am happier to pack in more to make the site a no brainer purchase for buyers.

    For those without the experience, time, inclination or ideas to over-deliver their packages, then yes, a longer listing would be a smart move. I have moved my recent listings from three days to seven, the four day difference is really just to get a little more exposure for the listing if need be but generally I would recommend a 30 day listing with a BIN included now the free relist is gone. Offer some great BIN bonuses, over-deliver on your sites compared to most sellers and see how things go.

    I hope that helps and thanks for the great question, I’ll be publishing a blog post about the recent flippa changes shortly.

  19. KiranNo Gravatar (9 comments)

    30. Nov, 2009

    Hey Michelle,

    Thanks so much for the great advice on this :-)

    As you know from the email sent, your report helped me make my first sales on Flippa, and you have again, over delivered with some top advice.

    Thanks again :-)

    Kiran

  20. LeilaNo Gravatar (1 comments)

    11. Dec, 2009

    Hi
    Thanks for all your great advice but I was wondering if I could pick your brain a wee bit.
    I have a few sites I am considering selling because of the rent monster knocking at my door. Unfortunately they are all .info sites however they are on popular niches, with around 700 daily searches for the keyword on exact settings. The funny thing is that they have a little bit of traffic considering I hadn’t done anything to them previously (i bought the domains in July). However, for two of them I set up a couple of accounts on some Web 2 properties and submitted articles with backlinks, plus I submitted articles to myarticlenetwork as well, meaning that the number of backlinks will be growing daily to them. They have wp-o-matic installed to pull in posts but also unique content for the front pages.
    If I were to create unique themes for each of them how much do you think I could reasonably get for each of them? Would $150 be expecting too much?

    And another question (sorry). If I build sites with a similar idea on .coms (namely create accounts on a few webproperties with articles pointing backlinks plus submitting to myarticlenetwork) to sell as new sites how much do you think they would be worth, especially if I add some bonuses to each one like extra content for more backlink creation, seed articles, even an ebook where it qualifies.

    Thanks a lot.

    MichelleNo Gravatar (309 comments) Reply:
    December 13th, 2009 at 8:54 am

    Hi Leila, sorry I haven’t gotten back to you prior to today.

    If a .info site is ranking okay and has traffic it won’t be considered all bad. It’s hard to say without seeing the sites and knowing what niches they’re in as to what you might get for them. Assuming there is a reasonable amount of content and they look okay and are monetized then I would say reaching for $150 wouldn’t be too hard. But as I say, it’s very difficult to know without seeing the sites and also it is a very difficult thing to predict. For example a niche blog won’t get many bids but then it can just be snapped up in an instant for its BIN (buy it now) price. Someone just might have a perfect use for your sites, they might compliment their niches or the content might be what they’re looking. The more you offer in terms of bonuses etc the more you increase your chances of them selling.

    In regards to your second question about building sites on .coms etc. It really depends on how much content you offer and so much more. To give you an idea, you can view this site I sold recently for $197US. It had 10 unique articles and several monetization methods integrated. It was built around a heavily customised premium theme and probably could have fetched $297, but I’m focused on testing the market with a lower price point at the moment and I was right in my prediction that the site would sell within a few hours. But as I say, there are so many variables that the only thing to do is just get your sites together, list them up and see what the market tells you.

    Good luck and let me know if there is anything else I can help you with.