The art industry is fragmented, with artists heavily reliant on galleries, and online marketplaces often limited in utility to selling ready-made artworks, which can be time-consuming and costly with no sales guarantee. A particular online marketplace aims to bridge this gap by directly connecting artists and collectors, promoting the notion that collectors should find art that perfectly fits their desires, believing there's an artist for every individual. This platform offers a comprehensive service that includes customer discovery, project definition, payment processing, progress updates, and approval stages. Utilizing Stripe Connect Express, it establishes a milestone payment system acting like an "escrow" to minimize financial risks in custom projects. The marketplace also uses images and videos to foster a significant connection between artists and patrons.
Operationally, this marketplace connects clients with artists and takes a commission on each sale for its services. Initial efforts to attract users included offering early adopters a permanent reduced commission rate. Standard commission rates are designed to be competitive, aiming at 10%, significantly lower than traditional gallery fees, which range from 20% to 50%. The platform remains in a pre-launch phase, with initial onboarding for artists completed. Target customers are presumed to be professionals aged 25-40, prepared to invest over $1000 in art to personalize their homes. Financially, the platform maintains low monthly expenses, with a software developer on retainer to address changes. The creator of the platform sees potential but plans to sell due to a lack of interest in pursuing the high-end market direction the business has naturally evolved towards.
Flippa’s platform is free for buyers. Here are our tips for first-time buyers:
Before making an offer
1. Look for verified sellers. Sellers should verify their email, phone, and government ID. When a seller has completed all verifications, we identify them with a checkmark like this:
2. Review financials. Financials are seller-provided inputs. Always ask for verified financials. Ask for a tax return or request access to their dashboard. if it’s an ecommerce store get a transaction report.
3. Review traffic. Sellers can grant you access to Google Analytics. Ask for read-only access to verify site traffic.
4. Schedule a call. Communication is key. The best way to find out more is to speak directly with the seller. For your protection, keep all communication within Flippa.
5. Make the offer on Flippa. We’re here to help. Flippa does not charge buyers and by making an offer on Flippa you’ll get access to our post-sales support team.
1. Agreements & Contracts.
Connect with a US-based lawyer or purchase asset-specific template legal documents via Flippa Legal.
2. Conduct Due Diligence.
You can conduct this yourself or use our trusted network of industry-leading due diligence partners. They can provide in-depth analysis, identify hidden risks, and independently assess the value of the business. Learn More