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Websites and Domain Names Traded in Online Marketplace

January 21, 2010 by  

Web Hosting ToolboxMelbourne, Australia – Flippa.com, a global marketplace for buying and selling websites, reached a milestone this week chalking up $30 million in overall sales since its inception in June 2006.

Originally part of the SitePoint Marketplace, Flippa launched as a dedicated website and domain name marketplace in June 2009. One of the founders and owners of Flippa, Matt Mickiewicz states “(Flippa) was spun off to give it more focus, more accountability, and to allow business development relationships that wouldn’t be able to happen if it was part of SitePoint”.

Flippa is one of a growing number of sites that facilitate the trading of virtual property online. The mechanism is similar to eBay – website owners list their site on Flippa and bidders then compete for the prize, with the highest bidder winning the auction. Website ownership is transferred to the winning bidder after the auction has finished.

Dave Slutzkin, the General Manager of the site, says sales are going well: “Since we moved to Flippa about six months ago, the number of websites and domain names being listed has doubled, and they’re selling well. Immediately prior to Christmas 2009 we had one of our biggest weeks to date, with $400,000 worth of property changing hands.”

The term “flipping” was originally coined by property investors. On the Internet, “flipping websites” involves purchasing existing sites, adding value to them, then reselling them for a profit. However, despite the name, not all participants on Flippa are actually flippers – many are investors who buy and hold websites as investments that produce ongoing revenue.

A wide range of sites are being bought and sold everyday. One of the more expensive sites traded on Flippa sold for just over $230,000. The seller stated monthly revenue for this site at $40,000 making this an interesting prospect if profits stack up.

Dave encourages buyers to do sufficient research when purchasing websites on Flippa. “Prospective investors should treat buying websites as they would buying a business. There is no substitute for doing your due diligence. You must ask the seller for proof of revenue and traffic, amongst other things.”

New functionality continues to be released on Flippa with the next update already in the works. “We’re excited about our next major update scheduled for late February. It will improve on the user interface, making it easier for buyers to compare offerings on Flippa,” says Dave.

With 90,000 visitors to the site per month, Flippa has a long term commitment to the growth of a marketplace where buyers and sellers meet to securely trade virtual property.

About Flippa.com Pty Ltd

Flippa.com is a the largest global marketplace for buying and selling established websites. It has traded over $30 million in listings and continues to list 500+ new auctions weekly.

For more information please visit www.flippa.com.

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