I know that you can see feedback of sellers in Flippa but I don't know how much to trust that feedback.
If you are new and looking to buy a starter site would it make sense to go with a company like this that has done all the research on the niche, created the site and conducting 2 days training at their offices?
I see them advertising all the time in other business selling locations so was curious what you thought of them.
What questions should I ask if I call?
Melissa, for your first buying experience it's probably best to choose a seasoned seller. Look for someone who's received a decent amount of positive feedback. We'll be adding a UserID search functionality soon so you should be able to see what other auctions they've had. One of our more prolific sellers is a regular here so I'm sure she will also have some comments on this!
Melissa I've only had a very quick look around the IBFS site and looking at the Australian businesses (my home land) was interesting. For example they talk about a business IN Noosa named NoosaTouristGuide . com . What business? It sounds like they have a bunch of domain names with business 'ideas' behind them. In fact it looks like one business idea fits all at first glance, perhaps that is true or not but either way perhaps it works too...?
Some of the promises they make look fine amongst such a slick website but not sure they are credible. I'm not sure I'm reading it right but it appears a couple of the 'businesses' are selling for 15,000 pounds...and these are for 'businesses' that are no more than a domain name and an idea.
The creative use of copy to portray a domain name as a business that already exists and not only that that they claim "Our successful business model cuts through any competition with its unique sales and SEO techniques." well really I'd be very cautious. Take what I said as a result of literally a ten minute look over the site. I'm sure there are more revealing aspects to this than I've found so far.
This is a registered company, a UK based LTD, with a published postal address and phone number and company details available at Companies House. They can be further investigated if you're willing to pay a small fee for a copy of their accounts and credit history. In contrast, Flippa sellers have feedback provided from previous buyers. For some of these sellers with a lot of good feedback you can contact their previous customers and make enquiries.
Which is more credible is up to you.
I do note that this company starts their home page pitch with the wording: "..we can provide you with a new online business (no experience needed), a new lucrative income and a new way of life! Our tried and tested e-Business Model has brought lots of existing clients great ROI ..."
There's all the usual sales pitch but I don't believe they are hiding that their core product is ...a brand new business. Some Flippa sellers, similarly, disclose it very clearly. Others don't.
"No experience, full training, ongoing support and help means you can rest assured when you buy an internet business from Internet Businesses For Sale.co.uk your guaranteed success!"
Now that's something you can sue them on. If you don't get what they've promised you have what's apparently a solid company behind the promise - someone you can sue. It helps that they're not in some third world dictatorship but in a country with a decent legal system. Some would argue that Britain is worse than many third-world dictatorships, but that's a different discussion
I had a look at the Australian business section and they say "(this) Spanish Tourist Guide is tailored for you." Oops! Prices seem to be around $10K.
They do seem to offer much more than what the Flippa turnkey sellers offer. I haven't examined their offering in great detail - and they may provide excellent value - but $10K seems a bit steep.
Melissa, are they willing to let you speak to past customers to see how successful they've been? Would they let you choose which customer you're going to contact?
If I were starting I'd rather pay $10K and have a guaranteed way of getting that back if not successful than pay $500 and take a chance.
Thanks everyone for your advice and help.
Michelle, the price is very, very high but I intend to see if they'll haggle. he he
Thanks, 3Six, for the questions. Any other question suggestions if I call them? What would be a good way of comparing their services against the much cheaper starter sites available elsewhere like Flippa? Are there any other companies like this that bundle starter sites with some training?
How did you get on Melissa? Did you call them?
Clinton, yes, I did contact them and they sent me a document on how it all operates. I decided it's not worth the money.
Michelle, thanks for your views. I agree. As you say, "The creative use of copy to portray a domain name as a business that already exists and not only that that they claim "Our successful business model cuts through any competition with its unique sales and SEO techniques." well really I'd be very cautious."
Luke, that seems to describe a lot of the Flippa listings as well
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