Flippa is committed to enabling sellers to list as easily as possible and for those listings to have all of the information that buyers need to make an informed decision about what they are considering to purchase.
With this in mind, Flippa has separated the listing process for assets and businesses. When a user selects ‘Sell My Business’ they will be taken to the start of the listing process. The first step is to chose whether you are going to create an asset listing or a business listing.
How do you know whether to create a business or an asset listing? If you are selling a business operation that has been running for over 6 months, is currently trading and you have your financials together (in the form of a P&L, accountant prepared financials or you use accounting software such as Sage or Xero to keep track of your revenue and expenses) then we would consider what you are trying to sell is a business and your listing will be featured under the appropriate business type on flippa.com. If you select to list as an asset your listing will be featured under 'Starter Sites and Apps' or 'Domains' on flippa.com.
After 'Sell your business' has been selected, the platform will check to see if a user has an account to list businesses. Please note that this is a new feature and this business account is in addition to any existing Flippa.com account.
- If a user does not have an account they will need to complete registration
- If a user does already have an account they will automatically be logged in at this point. (If they have logged out they can use the link below the registration form to login again).
From here there are currently 4 steps in the Flippa listing process:
- Verify Identity
- Build Listing
- Chose Level of Service
The first step is online ID verification. This is powered by an independent third party - ‘Jumio’. Please note that when the ID verification process is started the URL will change to 'flippa.netverify.com’. This is expected behaviour and is part of the ID verification process.
ID verification can be completed either by uploading documents and images; or by taking an image through the device currently being used. Please note that if a document upload is selected, only JPG or PNG format are supported. Please also note that both front and back of ID documents such as drivers licenses are required.
After ID verification has been completed, a 'builder' will open and enable a listing to be created online through the selection of answers to key questions about the business being sold. By standardising what information is presented on a listing we can ensure a high level of quality and most importantly we can ensure that key information buyers need and expect is present. There are still opportunities for a seller to add their own comments into a listing to personalise it. Sellers need to be careful that whatever information is added to the listing is factually correct and does not contravene the Flippa terms.
Please note an important part of the listing creation is to upload a photo or image that will be shown on the listing. This should be a photograph of a product, site or service associated with the business being sold and it needs to be a high res, large rectangular or landscape image. It could be a product shot, website or general lifestyle image. Please note that this is required for the listing to be completed.
The next step is to chose the level of assistance that is required, self-service where a listing is fully managed by the seller including all interactions with buyers; or broker assistance. The actual services that are provided by a broker varies from broker to broker, but typically includes professional valuation, listing creation, buyer vetting and assisting a seller compile all required financial and legal documentation. Essentially engaging a broker means that a seller is ‘hands-off’ during the listing and sale process, the broker does everything. The broker will charge a fee for this service and sellers should discuss what fees are charged by brokers before engaging one. Both self-service and broker options carry the same listing fee ($200) and same success fee is applied on a successful sale (10%).
The last step is to pay for the listing. This is charged to a valid credit card and processed via the payment provider ‘Stripe’. More information on Stripe can be found at ‘stripe.com’.
After payment has cleared the listing will be launched for potential buyers to review. It will not be fully active at this stage as it needs to pass a final Flippa QA, however we aim to complete this within a few hours of the listing being finished. Sellers will receive an email when this has been completed and approved.