Making a web or mobile platform from scratch is a pretty delicate and long-running venture. Alternatively, one can purchase a ready-made framework and drive some revenue after having optimized it to some extend. Moreover, the resource could be sold at a more favorable price after optimization.
Both those approaches turned out to be possible thanks to solutions like Flippa, no wonder why this person-to-person marketplace is highly demanded nowadays. Believe us; its creators manage to get their own share of profit.
This time we’re to discuss valuable and exciting details on developing software similar to Flippa, so let’s start.
Functionality Flippa delivers
We shall highlight the functions a site similar to Flippa should provide to succeed. Strictly speaking, it makes sense to divide all parameters into the three key sections:
● Supervision. Those are the instruments to administer the platform, for instance, analytical & statistical means, payment tools, marketing solutions, content management, etc.
● Sale. This group includes implements for sellers who decide to put their digital products on the market (proper registration, safe profile, order management, sales push instruments, and alike).
● Acquisition. Marketplaces like Flippa also take care of buyers and offer them various features they require. It’s about the possibility to sign up and set up accounts, tools to search and filter, check previous orders, explore lot of pages, look through ratings and reviews, and more.
To maintain a comprehensive picture, we should reveal the advantages and disadvantages Flippa has.
The pros of Flippa
● Timely charges. According to Flippa’s policy, all commissions are due to get paid after successfully completing a particular transaction.
● System verification. Every lot is getting verified against specified criteria, like, cost-effectiveness and statistics. Each sale process begins only when such inspection is successfully finished.
● Without limits. The service doesn’t impose any restrictions regarding the geography of application or time. Both selling and purchasing could be accomplished 24/7 from any location in the world.
● Net effect. The owners of the given p2p marketplace have managed to create a successful website that has a worthwhile ability called “network effect” when the resource’s first achievements give rise to more significant results without particular efforts from its creators. The secret is to entice more acquirers, then the number of salespeople will increase as well, so the framework will promote itself.
● Absence of middlemen. While taking advantage of peer-to-peer solutions, it won’t be necessary to resort to brokers. Clients can seek help from those mediators only in case they really need some advice.
● A chance to conceal certain data. Vendors can selectively supply the info about digital services on sale, meaning they could use such an opportunity to cover up some details.
● Top-up capacities. Flippa also enables salespersons to move lot intensively.
The cons of Flippa
● Data gaps. The point which is considered to be an advantage for salesmen serves as a disadvantage for purchasers. Having incomplete descriptions of lot when particular info is hidden to varying degrees, buyers are risking to acquire a cat in the sack.
● Challenges in the beginning. Obviously, Flippa is ready to assist brand-new clients to go into the flipping trade. However, it turns out to be not enough in case users have a lack of experience.
● Paucity of linguistic support. As of now, solely, English-speaking users can enjoy Flippa.
The Flippa site is evidently a decent platform providing multiple valuable possibilities. And, now we are to proceed to the most interesting part.
Flippa’s monetization strategy
Let’s explore this marketplace’s experience to figure out how the owners of p2p resources can earn a profit. The mentioned program presents sellers with the following alternatives:
- Possibility to carry out sales on their own, and Flippa provides everything individuals require to start online selling activities. In case they need certain assistance, they’re welcome to get consulted by a manager to puzzle out how to accurately establish sales procedures.
- Opportunity to engage experienced brokers who could advise along the selling way.
Around 49% of Flippa’s earnings emanates from software sales, with hostnames making up a minimum of 31% of deals. Even so, this organization also has other revenue streams we’re about to distinguish.
Flippa’s sources of revenue
The below you can find the key monetization techniques of such a peer-to-peer online system.
# Trading levy
Flippa’s creators call it “Success Fees,” which are charges levied for successfully accomplished operations. Such means are quite evident, and usually, the fees are 5%-15% depending on a specific case.
# Listing levy
That’s the fee the audience shall be ready to pay in order to list their lots on the site in question. Flippa levies a charge for posting lots’ ads. Based on the kind of a lot, it could be from $10 up to $49.
# Listing push
Clients can additionally foster their online products on sale. The company is eager to provide varied extra services at an additional cost:
● better search results;
● a chance to take advantage of video features for advertising purposes;
● promotion on social networks;
● noticeable banners on the website;
● immediate interactive support.
The price range is certainly broad - from $95 to $545.
# Bonus functionality
The given framework offers two packages: a cost-free option with basic instruments and a paid one delivering more advanced possibilities. The second package includes complimentary protection of privacy-sensitive info, the chance of receiving professional counseling on how to upgrade lots, etc.
More monetization options
Entrepreneurs planning to design a Flippa-like platform shall discover some exclusive monetizing tools since what is good for Flippa might turn out to be useless for another site. Here are a few ideas for you:
● Paid registry. In order to drive revenue immediately without the need to wait for successful business operations, one could levy a registration charge. Though, not all visitors will understand and accept this sign-up requirement.
● Subscribing. Users can choose to purchase a monthly/annual subscription to avail of all the features.
● Ads. Naturally, you don’t have to neglect advertising since it represents an excellent mechanism of business monetization. The task is to motivate future advertisers to work with a particular program.
How much it might cost to develop a Flippa-like resource
Before you start earing, you’ll have to invest. It’s critical to understand that multiple factors will contribute to the final price so that the budget will draw on such variables as:
● The sophistication of a startup, meaning how many functions you’ll decide to introduce;
● The price-list of IT engineers that depend on their expertise, reputation, geographical positioning, and more. By the by, the US programmers usually have higher prices compared to specialists from Eastern Europe;
● Peculiar requirements, say, the coverage area, platforms to be supported, and the like;
● Designing attitude, whether to make it from scratch or to implement ready-made templates.
To summarize, software development’s final value shall hinge on how many hours developers will require to complete the project. Design teams usually have hourly rates. As a general rule, writing a script of a marketplace takes 950-1600 hours.
Still, it’s vital to appreciate that building & launching a system is not all expenses. Even if a framework is running appropriately, it also demands certain funds to ensure its smooth operation. The post-launch expenditure usually includes:
● the support (continuing screenings, taking care of clients’ feedback, etc.);
● consistent modernization (upgrading the website to follow the modern digital style);
● charges for cloud servicing, hosting, and the like;
● promotion campaigns (decent marketing is a must to contend with analogous solutions).
It is hoped that our analysis didn’t confuse you, and you still wish to build a Flippa clone service. In any case, it’s better not to draw precipitous conclusions. Remember that the right monetizing strategy will transform all expenses into profitable investments.
So, do you think it’s possible to create a marketplace akin to Flippa to generate income?