Companies often have to increase their prices as time goes on, but the way they go about doing so is crucial to their image. Sadly, Flippa did a major mistake when increasing their prices on December 13, 2016. They didn’t tell anyone.
Flippa has always had issues increasing their fees. In early 2014 Flippa sent out an e-mail saying they were lowering prices, which to their credit, the listing fees did lower from $29 to $19 for established websites, along with other listing fees being lowered. But there are additional fees when selling a site or domain name on Flippa. When you sell a site on Flippa, there is a success fee which takes a percentage of the sale price that the seller has to pay once the listing is successfully sold. Before Flippa’s 2014 price changes, the success fee was 5% with a $3,000 limit. After the changes to the prices, the success fee was raised to 10% and Flippa removed the $3,000 limit. These changes in 2014 helped sellers of sites that sell for less than $200, making the market for small starter sites grow significantly, flooding their marketplace with low quality sites.
But that was what happened in the past, surely Flippa would of learned from their mistakes because of the countless articles, forum posts, and messages they received angered by their users. On December 13, 2016, Flippa changed their pricing again. Instead of sending out e-mails, posting to Twitter, or any other way to alert their users, Flippa decided that writing a blog post on their site was the best way to tell everyone. Flippa proceeded to immediately change their prices to their old listing fees before the 2014 change and also increased the success fee once again.
As of right now, the following prices have changed on Flippa.
- Starter Sites listing fees increased from $9 to $19.
- Established Sites listing fees increased from $19 to $29.
- Website Classifieds listing fees increased from $0 to $9.
- Success Fee for all sales increased from 10% to 15%. The fee is discounted to 12% if you use Flippa Escrow. Flippa’s Escrow service has always charged buyers a 2.9% fee when paying with a credit card, which is where they make up the missing 3% they discount.
These increased fees will kill the starter site flood that the 2014 changes created. Sellers of starter sites were already making small margins on sites they were selling, but with the most recent changes, sellers of starter sites will most likely not be able to sell on Flippa anymore unless they increase the price for each site.
A major mistake Flippa made with this change is they didn’t warn anyone that the price hike was going to happen. When most companies increase their fees, they give a month or even a year notice for people to adjust to the changes. Flippa’s service is a crucial part of some people’s livelihood, and Flippa doesn’t care.
With other services that people rely on for their jobs, whenever they increase their pricing, they gave notice. There are tons of examples, but below is a short list you can look through.
- Upwork gave a 1 month notice in May about June price changes.
- Namecheap alerted users 1 week before they had to increase their .NET registration and transfer fees.
- Evernote in 2015 changed their pricing plan and added a new tier to their pricing. Current customers would stay locked into their current price for 1 year before being charged the slight price increase.
- Todoist changed their international pricing, but it only affects users after their current subscription ends, and they gave a 1 month notice.
If you are looking to sell your site or domain name, there are other options. SEDO, Bido, and many other services exist to sell your site and domain names.