I buy websites on Flippa, and it is always difficult to figure out is the site is worth the price, if it will lose rankings, is banned from AdSense, or has many bad links. Add to this that 50% or more sellers want to SCAM you, or are hiding important info, and investing in websites becomes a VERY risky adventure.
However most scams are easy to spot if you look closely and pay attention to important details.
Here is my video review of some obvious but very deceptive scammer who went as far as making a Fake Adsense Earnings Proof Video (some actually made a fake adsense dashboard. These are obvious things that you should always check:
Scams on Flippa video
The obvious scam signals
1) Verified AdSense income: When seller claims income from Adsense, Flippa offers mechanism to verify that income “belongs” to the specific website. In theory this cannot be faked, and you should see a green line on the Earnings graph inside the listing. I still go further, and ALWAYS ask sellers to provide additional screenshots of last 30, 90 and 365 days site reports, that highlight Revenue, Page Views and RPM tabs, and show 3 line on the graph.
If seller claims income from AdSense but it’s not verified, you should probably avoid this website, and move on. Sure there are exceptions. For example my $10000 website purchase – seller was using original site creator’s AdSense account AFTER he bought it … However he still managed to verify it with Flippa.
2) Always request Google Analytics access! – It is absolutely essential to have complete (read and analyze) Google Analytics access from the time you contact seller to the time you finish transaction (and preferably that seller makes you Admin after sale is completed, to retain old data).
NEVER, NEVER, NEVER Buy Websites Without Google Analytics Access (if available).
I never buy sites unless I’m given Analytics access. If seller refuses to give access – they are hiding something. NEVER buy such sites.
If seller agrees to give access after some back and forth, they could be a newbie, but you should still consider that they are hiding stuff. I never had luck with such sellers, and never ended up buying from them.
If seller gives you access to google analytics only for 24 hours or revokes access without telling you – don’t buy from them.
3) Fake Amazon Affiliate Income – It is VERY easy to fake Amazon income because of POOR reporting system by Amazon. When I say “poor” i mean it’s not designed for site sales.
Amazon reporting is based on Tracking IDs, which can be used on multiple websites. For example – seller claims $500 monthly income from Amazon Affiliate program. In reality, site can be making only $100/months, because same link (Tracking ID) is used on other websites, thus inflating income.
For example – search Google for dpsgeneral-20. You will get the AnalyzeID in 1st position. It is a paid service, but you can use it free (I clear cookies to continue using for free 🙂 ) … However I find this is the best such service available (and most accurate), so if you do this a lot – consider upgrading.
dpsgeneral-20 belongs to problogger.net and is also used on 3 other websites. So if one of those was for sale, seller could claim income from 4 sites. You get the gist … bottom line – Amazon income is easy to fake and you should spend extra time analyzing it, and since new Amazon affiliate rates go into effect on March 1, 2017 (which will result in 10-40% drop in incomes), I would not pay more than 10-15 multiple for a website earning primarily from Amazon
4) Screenshots can be Photoshop’ed Never trust screenshots exclusively. It’s very easy to fake any image, and make it look very realistic. Always ask for additional proof of income (video walk-through preferred).
5) If you feel that seller is hiding something or there is something fishy – WALK AWAY – If it smells bad, it probably is bad, and you should not lose money to find out if it’s in fact bad!
There are too many sites out there to deal with bad sellers / websites, etc.
Conclusion – Scams are abundant on Flippa and most sites there, are junk! Be very careful making a buying decision
To recap – many sellers on Flippa are scammers.
Never trust any seller or buyer, even if they have 100% positive feedback.
Most site on Flippa are complete garbage (overpriced, crappy, etc).
Always look for reasons NOT TO BUY a website. This is the only way to get good deals.
I speak from experience of having skin in the game – as of now I’m in for almost $50000, and am always looking to buy more. However it’s become increasingly difficult to find good site. If we weed out all the bad sites, most decent ones are now overpriced because so many new investors are getting into the game and are paying outrageous multiples.
Best of luck and don’t lose the money!