Flippa Success Fee 30-Day Time Period Questions

[wentzco]

(From https://flippa.com/termsandconditions )

"Success Fee - means a Fee that may be payable by the Seller upon (a) the conclusion of an Auction which results in a Winning Bidder; or (b) the acceptance by the Seller of an offer to purchase the Seller's Digital Asset via a Private Sale or Catalog Sale; or (c) when the listed Digital Asset is sold within 30 days of the listing ending"

OK here are the questions - Let's say I list a domain at auction on Flippa & it ends unsold. Is this 30 day period start at the end of the auction or do I need to "Disable ability to receive offers" on that domain for the 30 day period to start? If I add domains to my portfolio for the catalog... does this 30 day success fee apply so I can't list domains elsewhere without paying Flippa a success fee even if they weren't responsible for the sale?

 

[wayne wooldridge]

You only pay a success fee if you have a successful sale on flippa. You don't pay flippa if it sells elsewhere. Hope this helps

 

[wentzco]

You only pay a success fee if you have a successful sale on flippa. You don't pay flippa if it sells elsewhere. Hope this helps

Wayne - look at the term saying "(c) when the listed Digital Asset is sold within 30 days of the listing ending"

Yep - they still collect their success fee even if you sold the name elsewhere if it was within a 30 day time period. Hopefully Kevin from Flippa will see this & clarify things.

 

[wayne wooldridge]

I understand that. I believe that is in a case where as such, an unsold domain auction ends up being negotiated after the fact with a flippa buyer. The sale still occurs within flippa, so yes, they do get commission.

Selling the domain within 30 days subsequently (or even during the auction) outside of flippa is a completely different animal.

I could be wrong...... Though I don't see how external sales could possibly be regulated.


As far as I know, it works like this:
An auction ends unsold. All watchers of the auction are notified that the auction ended without success, and are invited to make a formal offer through flippa. If any of these offers are accepted by the seller, flippa gets the success fee. (Assuming this happens within the 30 day window.)

 

[FlippaDomains]

Wayne - look at the term saying "(c) when the listed Digital Asset is sold within 30 days of the listing ending"

Yep - they still collect their success fee even if you sold the name elsewhere if it was within a 30 day time period. Hopefully Kevin from Flippa will see this & clarify things.

What I'd like to know more is what is bringing you off platform to sell your inventory?

 

[wayne wooldridge]

Good question... Why not just relist for free??

 

[wentzco]

What I'd like to know more is what is bringing you off platform to sell your inventory?

The bidding levels are way too low & sometimes non-existent (zero bids... not even a $1). Heck even the bidding got up to $500 on one name at Freemarket on a name that had zero bids at Flippa - I've had a fair 4 figure offer via email on that very same name which I rejected.

Now I have sold many names over years ranging from low 2 figure sales (when doing a partial portfolio liquidation) to high 5-figure sales & even have rejected 6 figure offers on one name. I say this as I have 15+ years of experience buying/selling names so I am a fair judge of domain value IMO but realize offers/bids don't always reach the value depending on venue. I've sold a handful of names at Flippa but every single name I sold - I had higher offers elsewhere in the past (I know... I know - woulda coulda shoulda).

Anyway - I have relisted some names for free. I decided recently to only relist one name that I finally sold for $500 which is less than I had offers on it previously in the past. I actually did multiple 1-day auctions in a row on it as 14-30 day auctions are doing nothing but tying up my names. If someone can't decide if a name is worth a bid in a 3-7 day auction... they aren't going to be a buyer anyway IMO. I didn't relist free the other 17 ones that were listed in the past so I can get past the 30 day period. The bid levels have been terrible. No - I have not listed for auction my very best names at Flippa but sell some good ones at way too low of price.

I may or may not list names in the catalog but need the questions answered first as there is some confusion in the terms & conditions. Also if we receive an offer on a name int portfolio catalog - is that offer price shown publicly to everyone or just to the bidder/seller. I say this as I feel low offer prices (& low bids on unsold auctions of good names) devalue the name IMO.

(From https://flippa.com/termsandconditions )

"Success Fee - means a Fee that may be payable by the Seller upon (a) the conclusion of an Auction which results in a Winning Bidder; or (b) the acceptance by the Seller of an offer to purchase the Seller's Digital Asset via a Private Sale or Catalog Sale; or (c) when the listed Digital Asset is sold within 30 days of the listing ending"

OK here are the questions - Let's say I list a domain at auction on Flippa & it ends unsold. Is this 30 day period start at the end of the auction or do I need to "Disable ability to receive offers" on that domain for the 30 day period to start? If I add domains to my portfolio for the catalog... does this 30 day success fee apply so I can't list domains elsewhere without paying Flippa a success fee even if they weren't responsible for the sale?

 

[FlippaDomains]

I may or may not list names in the catalog but need the questions answered first as there is some confusion in the terms & conditions. Also if we receive an offer on a name int portfolio catalog - is that offer price shown publicly to everyone or just to the bidder/seller. I say this as I feel low offer prices (& low bids on unsold auctions of good names) devalue the name IMO.

I appreciate your response. I know we've worked together in the past and hope to continue to help if able. The offers in the Portfolio Section should be only visible to you and your buyer(s). As for T&C's...Let's dive deeper into that off thread.

 

[m-i-k-e]

As for T&C's...Let's dive deeper into that off thread.

Seems in thread would be more beneficial as I'm sure all sellers that use Flippa would want to know if Flippa has a 30 day exclusivity period after auctions close.

 

[deflee79]

Seems in thread would be more beneficial as I'm sure all sellers that use Flippa would want to know if Flippa has a 30 day exclusivity period after auctions close.

I agree with that. Why not be transparent about the T&C.

 

[TestCase]

Plus one more for a clear, concise and transparent "in thread" clarification.

Every time I consider giving Flippa a try, I find some new reason not to. Without the clarification, this will be one more reason to pass on Flippa.

 

[FlippaDomains]

Seems in thread would be more beneficial as I'm sure all sellers that use Flippa would want to know if Flippa has a 30 day exclusivity period after auctions close.

I agree with that. Why not be transparent about the T&C.

Plus one more for a clear, concise and transparent "in thread" clarification.

Every time I consider giving Flippa a try, I find some new reason not to. Without the clarification, this will be one more reason to pass on Flippa.

I've been travelling and won't have time to reply for a bit. The long story short is that we used to have much more stringent policies around this, but before responding further I want to see where we're at now. Thanks for your patience while I look into it.

and

Every time I consider giving Flippa a try, I find some new reason not to.

...Sorry to hear, but without knowing what exactly troubles you, we'll never be able to properly address / fix it. Feel free to PM me...

 

[NameOmnia]

when the listed Digital Asset is sold within 30 days of the listing ending"

If listing a name equals that @FlippaDomains has an exclusive 30 day right/brokerage period that should be made much more clear than what it is in the rule mentioned above.
I am afraid Test Case is right.

 

[FlippaDomains]

If listing a name equals that @FlippaDomains has an exclusive 30 day right/brokerage period that should be made much more clear than what it is in the rule mentioned above.
I am afraid Test Case is right.

The short answer is - we do not enforce anything like this, so don't worry.

The longer answer is, I'm seeking to change the language to something that is timely, relevant and easier to understand...