Selling an asset that is not currently generating revenue, but rather has the 'potential' for generating revenue is possible, but it must be done carefully so that buyers clearly know the current status of the asset they are looking to purchase.
- Any claims of revenue or traffic in a listing must be supported by evidence.
- Any claims to potential revenue or traffic in a listing must clearly be marked as such and be accompanied by robust workings and assumptions.
- Claims to specific potential revenue or traffic numbers are expressly forbidden in listing titles.
What does this mean?
Only verifiable current data can be presented in listing titles and summaries. If a seller is to claim potential revenue or traffic, then the following criteria must be met.
Any business being sold with the potential for generating revenue or the potential for generating traffic is required to have the following phrase used verbatim as the first line in the listing description:
- This business is being sold on the basis of the potential to generate revenue or traffic.
This statement must then be accompanied by robust workings and assumptions that clearly explain the method for making potential revenue.
In the listing description, any statement or claim of potential revenue or potential traffic must use the specific words ‘potential revenue’ or ‘potential traffic’.
These words must be used verbatim. For example:
- Not allowed: Use this time-tested and proven method to make $100/day or more.
- Allowed: Use this time-tested and proven method to make potential revenue of $100/day or more.
- Not allowed: You can use my system to make $100+ per day.
- Allowed: You can use my system to make potential revenue of $100+ per day.
If you have any questions about the above - or see a listing on Flippa that you are concerned about, please contact our 24/7 support team.