FP - Flippa Newsletter: "Quality" feedback 6 months after the sale

[BrettM]

Flippa sent out their latest newsletter, and included an interesting change. They are now instituting 'quality feedback':

We send out a “quality feedback” invite to website buyers six months after the website auction ends. This invites the buyer to rate their experience as positive, neutral or negative and to provide qualitative feedback via a comment. This is then displayed on the seller’s profile as “site quality feedback”. The feedback left immediately after the sale will remain as “transaction feedback” on both profiles for both buyers and sellers.

Interesting, and I'm sure to stir up comments on both the buyer's and seller's side. They also include a section, re: "What If the Buyer Runs the Site Into the Ground?"

Certainly a "suggested read" in my books...

[Thomas]

Sounds like a complete nightmare. The Flippa marketplace is full of buyers who really aren't very smart. Especially now sellers have to pay the success fee themselves, the marketplace is becoming more and more buyer orientated (anyone remember the good old days of ebay?!)

From the full Flippa article: "For the most part, website buyers are aware when they’ve not kept their end of the bargain and able to distinguish this from seller feedback when a site has been neglected."

Not sure where they got this from, but I really don't agree with that at all. There are so many variables when it comes to running a website that in 6 months time anything could have changed.

For example (this is not real - just a made up case), say I had an autoblog that was doing well pre-Panda update. When selling, everything I state is fact and the earnings are steady. A few months down the line, Google's Panda update comes in, slaps the site and it loses all traffic. Earnings drop significantly. Most buyers on Flippa (from my experience) aren't involved enough in the industry to realise this so will blame the seller.

It's fine for people who sell crap sites that make no money as in this case the buyer probably won't be surprised if the site still makes nothing. But for those of us who sell proper sites with traffic and income, this could become a real issue. Whilst the majority of established sites will continue to do well, there are FAR too many uncontrollable variables that have nothing to do with the seller that will be blamed on them by inexperienced buyers.

Another point in the article is: "Second, it provides a greater incentive to ensure the new owner is well and truly up and running – even after the money is in the bank. There are always quirks with a complicated site, and the onus must be on the seller to help the buyer with these. If you don’t think the buyer is capable of running the website, don’t accept their bids."

I don't agree with this either. As a seller, it's my responsibility to give the buyer what they paid for. For those of us running real businesses, it's not practical for me to hand hold every buyer for free (or included in the sales price) after sale which is what they are implying. Sure, I'm happy to help out with the odd question, but my time isn't free and once the initial handover and basic training has been done, expecting me to go above and beyond after that is slightly unrealistic (in most cases I will, but I've had buyers in the past who have literally taken up weeks and weeks of my time and I've not seen a dollar from it).

I'm sure buyers will be happy with this change, but for sellers who actually make a living online, this is going to become problematical unless the buying demograpgic on Flippa changes significantly.

[BrettM]

I didn't think it's be a favourite of sellers .

You're right, it's really easy to buy a site and flame the seller as it didn't meet 'expectations'. Expectations based on what -- the buyer? the seller? something else entirely?

There's too much out of the seller's control to know what could happen. Here's a real case study... site sold (privately... I was uninvolved, but aware) in the pet niche. Maintained rank 1 for many months, even after the first few Pandas. Good site, great backlinks (lots of quality, or at least relevant). I was just looking at the site today -- ranking is now 3 or 4 (significant in a high traffic niche like pets) with lots of ads plastered over the site that's irrelevant to the niche IMO.

Looks like they saw a stable niche (pets), traffic, and the opportunity to monetize it in a (again, IMO) spammy way.

Again, maybe not the buyers problem... maybe Panda caught up.. but certainly not the sellers problem.

As mentioned in my initial post, certainly an interesting change... and one that won't necessary affect everyone positively. In general I like the overall idea, but I agree -- has a lot of potential to be misused.

Either way, buyer and seller, important to be aware I'd say!

[InstantWebsitesForSale]

Buyers are complaining a week after they buy a site that the numbers aren't what they were claimed, i can only imagine what they will say when you reopen that can of worms in 6 months, and he completely ran the site to low numbers. It will just be another way to hurt the sellers with zero recourse. One of the reasons I will not sell on eBay, the buyer has ALL the power with feedback extortion.

Jeff

[TeamFreedom]

I have been doing a lot of studying in regards to buying websites and whatnot. I have noticed that there are a lot of places that you can buy the sites. Then fix it up, get it ready for the next buyer. I did some A/B testing. I have been in this testing phase for quite some time. I have a friend who I had to coax into doing this but here is the gist

He had a site that he flipped on Flippa. 9 months ago. We checked on it every few months. Sent letters to the seller as a 3rd party. Now mind you, it seems that many buyers buy. Expect their money back, RIGHT AWAY. Like it falls out of the sky or something. Not quite sure as I am not in their headspace. I am relatively new to this scene as myself getting into something. I will admit that I am not the best at this nor will I yet take that claim. Yet, I love to learn.

Right now I am trying to figure myself out. I like flipping but it seems so much more complex than just building it from scratch. Knowing where everything came from seems suit me well.

This whole thing on Flippa is people have too much invested in their now. Not the later. Or the bigger picture. They are misinformed because what "Industry type Leaders" are saying. There is a LOT of misguidance which is why I enjoy Thomas & bryan's stuff. I hope that I can match up to them eventually.

Most of the time these people who buy the site are not aware they actually have to do work. Its a shame that many think that things can just be handed to someone and that's that..

Making money is a science..

Work however you deem to. Whether that is hard or smart. Put a price on your labors. Get paid. Implement.

Be honest as well. When you are honest, it gets you so far. So far. Learn the tricks of the trades as far:

1. How the industry of the site you are attempting to sell
2. How to approach these people.
3. Whatever weakness you might have, trade it with someone. So for example. You might suck hard core at talking to someone. Yet you are super awesome at content or something else. Get in the squeeze motion. Barter. Getting money all the time upfront isn't always the way to go since there are often times money in the background. I believe.

So far I have been trying something new as far as getting more happy buyers. I only have one but I tend to like to hatch. I am more of a control freak. I tried selling on Flippa a long time ago but wow that was a serious mess and a half. Things have revolutionized so much in the last years. I will help them a few months after the purchase of my site. Be sure to get agreements in all transactions.

Wow, I wrote a lot.

[Clinton]

Sounds like a complete nightmare. The Flippa marketplace is full of buyers who really aren't very smart. Especially now sellers have to pay the success fee themselves, the marketplace is becoming more and more buyer orientated (anyone remember the good old days of ebay?!)

From the full Flippa article: "For the most part, website buyers are aware when they’ve not kept their end of the bargain and able to distinguish this from seller feedback when a site has been neglected."

I can see feedback being used to blackmail sellers. If the buyer has forgotten about this six months feedback, Flippa sends him a helpful reminder closer to the time and it gives him the opportunity to take stock and demand some extra help or effort from the seller in exchange for leaving positive feedback.

I think Flippa instituted it as a result of posts in EP and elsewhere. While in principle it's a good idea to take stock after six months, there is plenty of scope for dirty games.

[akirk]

They might therefore wish to check out libel laws
- anything said of a negative nature specific to an individual which might damage their reputation must be able to be proved (onus of proof on the person making the claim)
- Flippa may also hold liability if published in their system
- UK has become an international location for libel cases - and under our laws the person being libelled seems to win most times!

can of worms if they are not careful...
and very different from ebay in the context of what is being sold - on ebay there are many home purchasers / many items which are a simple widget and the photo is sufficient to demonstrate condition / function / item...
on Flippa - far more grey in it all...

mmm - interesting times ahead!

Alasdair