Buyer’s Guide to Avoiding a Dispute on Flippa

As the number one place for buying and selling websites, domains and apps, Flippa’s objective is to connect happy sellers to happy buyers to make happy transactions.  But sometimes, things don’t end up so happily.  Sometimes buyers and sellers find themselves in a disagreement that just can’t get resolved.

Flippa has a process of dispute to help manage these unhappy situations.  Unfortunately, once a listing has made it to the dispute process, chances are significantly high that the sale will not go through.

A sale turning into a dispute is never a good thing for anyone!  This isn’t only because of a broken business opportunity.  It also leaves a permanent mark on both party’s profiles.  Your best bet is always to avoid a dispute.

The best way for you as a buyer to avoid a dispute is to make sure you cover all your bases before you place a bid.  Here are some tips!

1) Get all the facts!

Once you’ve placed a bid on a live auction, you are committed to buying the item should you win the auction.  So you shouldn’t place a bid until you’re absolutely sure you want the item.

Although Flippa provides tools that assist with the due diligence process, Flippa insists that you do your own research as well.

• Take a look at the data Flippa provides.  Does the seller have any negative feedback?  Does the seller have their Facebook or Twitter account attached to their profile?

• For bold financial and traffic claims, insist on the seller sharing their Google Analytics access and Google AdSense data with you.  Carefully check these out and make sure the information makes sense.

• Be very wary of users who refuse to give you information until you place a bid.

If during the course of conducting your own due diligence you find that a listing doesn’t add up, please let us know.

2) Wait until the seller provides clear transaction terms.

What forms of payment are accepted?  What are the escrow terms? If support is offered, for how long and to what extent? Is there an inspection period?  If so, for how many days?  These are all things that should be made clear prior to placing a bid.  If they’re not clearly posted on the listing, don’t be afraid to ask the seller to be specific.

3) Make sure you understand how much attention the item will need should you win.

Are there requirements to maintaining revenue or traffic?  If so, make sure you understand what they are.  What are the risks?  How about costs for upkeep?  Websites are like cars.  They need maintenance every now and then — and some need more than others.

4) Understand what is guaranteeable and what isn’t.

If you buy a car, you can check under the hood and make sure the engine is oiled, that the transmission is in good order and that the interior smells good.  But ultimately, when you drive that car out of the lot, it’s yours!  This can be very exciting!  But it also means that anything that goes wrong with the car is now your responsibility.  The same goes with websites, domains and apps.

You can check to make sure that all the statements in a listing are true, but ultimately, once you win an item, that item becomes your responsibility.  Flippa generally won’t resolve a dispute in a buyer’s favor just because the website stops making money or because traffic takes a hit.

5) Be wary of sellers who are very insistent on fast sales.

This is especially true if you’re putting down a significant amount of money.  A quick sale means less time for due diligence and that means a higher chance for you to not get what you want.  If you feel pressured into rushing into a sale, please let us know.

6) Make sure you like the seller!

A simple phone call or Skype can go a long way to helping prevent a dispute.  Make sure you that you and the seller have an easy time communicating with each other and that you can do business together.

Remember that your best bet is to do all your research before placing a bid.  Only place a bid as soon as you know you want this item.  Being careful before placing a bid will ensure that both you and the seller are happy with the outcome.

If you ever need any advice, please don’t be afraid to reach out to your friendly Customer Success team by contacting [email protected].  Good luck!

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