Broker Program Agreement
Introduction to Flippa’s Broker Partner Program (“Program”)
Flippa allows business brokers to list assets for sale on Flippa.com, on behalf of their clients/sellers and represent those individuals in negotiations with buyers, on or outside the Flippa platform.
A seller/client may originate or be sourced within a broker’s own network (Independently Contracted Sellers) or be referred to the broker for representation via Flippa’s broker-matching service (Broker-Matched Sellers). A Broker-Matched Seller is one who elects, during onboarding, to be connected with and represented by a broker in the sale of their digital asset. Brokers have the right to accept or reject broker-matched sellers.
This Broker Partner Program was created to:
- to encourage business brokers to use the Flippa platform by providing benefits/rewards;
- to give sellers the option to have broker representation; and
- to increase acquisition opportunities for buyers on Flippa.
Participation in the Flippa Broker Partner Program is subject to the following terms and conditions.
Prior to being accepted to the Program, you must complete a Broker Partner Application. It is done online and accessible here. Flippa will review your application and determine, in 7 days, whether you have been accepted into the Program or not. Flippa reserves the right to accept or decline any organization or individual as a Broker Partner if it determines that you are unable to meet the ongoing requirements below.
This Agreement is effective immediately upon your acceptance into the Program by Flippa, and until:
(a) suspended by Flippa at any time effective upon the online publication of updated or modified terms which will be communicated to you via email,
(b) terminated by you or Flippa for any reason by providing 30 day’s notice in writing to the other party, or
(c) terminated by either party, with immediate effect upon written notice being provided to the other party, for that other party’s material breach of any of the terms of this Partner Agreement.
Once you have been accepted to, and as long as you remain part of, the Broker Program, you will receive access to the applicable benefits of the Program, as modified or updated by Flippa from time to time, including:
(a) Free listing fees;
(b) Add an NDA to a listing, free-of-charge;
(c) free premium listing upgrades; and
(d) automatic acceptance to Flippa’s Affiliate Program.
To remain a part of the Flippa Broker Partner, you agree to:
(a) adhere to Flippa’s Terms of Service
(b) add at least one listing to Flippa.com within 30 days of acceptance into the Program;
(c) conduct yourself in a professional manner when representing a client/seller of any listed asset (whether Independently-Contracted or Broker-Matched) and communicating with Flippa users and use your best endeavors to facilitate a sale,
(d) conduct your business in a commercially reasonable, legal, and ethical manner,
(e) make every effort to ensure that the seller you represent (whether Independently-Contracted or Broker-Matched) is aware of the economic terms of this agreement and Flippa’s entitlement to commission, and
(f) treat all correspondence from Flippa as confidential and only disclose information and/or correspondence to third parties after receiving written permission from Flippa.
Success Fee Discount + Payment Terms
You understand and agree that for every listed asset which sells on Flippa, Flippa derives a variable Success Fee, calculated as a percentage of the final sale price. More information on Flippa’s Success Fee can be found here. As a Flippa Broker Partner, you are entitled to a discounted Success Fee payable to Flippa. For the avoidance of doubt, Flippa does not derive a Success Fee on a broker supplied listing which sells to a buyer who is not registered with Flippa or is found outside Flippa’s network.
The Broker may post listings to Flippa for Seller Leads independently derived and contracted by Broker. Flippa may accept or decline each listing based on the listing guidelines set forth by Flippa. These Leads are to be managed by the Broker on the Flippa platform. If the lead sells to a buyer derived via Flippa the Broker will pay Flippa 3% of the sale price. On transactions over $1m USD where the Broker has negotiated a reduced commission with their seller and the buyer is derived on Flippa, commission will be shared 25% to Flippa and 75% to the Broker.
Flippa will pay to the Broker, a referral fee equal to 20% of Flippa’s derived Success Fee for any and all referred Leads from Broker that result in a sale.
The Broker will pay to Flippa, a referral fee of 50% of the negotiated brokerage commission for any and all referred Seller Leads from Flippa that the Broker had not previously, independently contracted. Flippa will endeavor to negotiate a 15% commission paid by the seller before sending the referral to the Broker.
Unless otherwise agreed, a Success Fee shall not be payable to you or Flippa until funds are received by the buyer into Flippa’s escrow account and the contract between the buyer and seller of the listed asset has seen a successful completion. Flippa will provide you with payment no more than 7 business days after the payment has been received and the contract of sale between buyer and seller has seen a successful completion. If Flippa has not been paid by the buyer, whereby funds have not been deposited into Flippa’s escrow account and the buyer and/or seller has terminated the contract of sale based on the lead, Flippa will notify you within 5 business days after funds were meant to be received and no commission shall be owed for that specific transaction.
Flippa Broker Partners are not required to advertise the assets of their seller/client exclusively on the Flippa platform. They may use associated advertising efforts in their own network in order to effectively make a sale. Notwithstanding, if a Broker Matched listed asset of a Broker Partner does sell, during the term of it being listed on Flippa or for a period of 60 days thereafter, Flippa is still entitled to receive the Commission in accordance with the provisions above. This is irrespective of the source of the buyer and whether they were registered with Flippa at the time of the sale.
Soliciting registered Flippa buyers or sellers is strictly prohibited. You agree to not solicit Flippa users, in particular those users actively seeking acquisition opportunities on Flippa. Solicitation may comprise collecting details of buyers for your own purposes. You must also not encourage or entice a seller to remove their listing from the Flippa platform or list elsewhere unless you intend to represent them on the Flippa platform in your capacity as a Flippa Broker Partner. Any solicitation other than as approved by Flippa will result in the immediate termination of this agreement. You will be removed from Flippa’s directory and will cease to have a profile on Flippa.
Relationship of Parties
No agency, partnership, joint venture, or employment is created between Flippa and you as a result of this Agreement. You are not authorized to create any obligation, express or implied, on behalf of Flippa.
You agree to indemnify Flippa against any and all claims, costs, damages and/or loss that Flippa may sustain or incur, as a result of any claim by a third party, including your clients and any Flippa users, arising from: (a) your acts or omissions including, but not limited to, your provision of professional services, and/or (b) your breach of this Agreement.