Business Idea: A Marketplace For Premium Websites

By Daniel Scocco

As you guys know whenever I get an business idea that for some reason I can’t execute I write about it here, so maybe someone else will try it.

Today’s idea is nothing ground-breaking, but I think there is a demand for it. It’s basically a marketplace where people can buy and sell premium websites.

At this point you might say: “Wait, but ain’t Flippa.com doing that already?”

Well, the idea came to me exactly after being an active user on Flippa for a long time.

What I noticed lately is that the ratio of small/crap sites to large/premium ones is like 100:1. As a result if you are either trying to buy or sell a premium site you might get frustrated. If you are trying to buy one you’ll need to spend a lot of time looking for the gems in the middle of the mud. If you are trying to sell one you might not be able to find serious buyers, exactly for the same reason (i.e., they won’t have the patience required to find your gem).

Creating the platform for such a marketplace would be easy. The challenge lies in attracting the right buyers and sellers, and providing a good experience for them.

One differentiator you could use is to qualify both buyers and sellers before they can interact with the marketplace. For example, buyers might be required to provide background information and proof of funds, while sellers would need to get each website approved (to make sure it is a premium website) before being able to list it.

The business model is easy to figure out too: charge a success fee on each auction/sale. Considering we are talking about premium sites, even 1% per successful transaction would be enough money to make a profit at the end of the month.

What do you guys think?

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16 Responses to “Business Idea: A Marketplace For Premium Websites”

  • Mayur Somani

    Its a great idea. Although, if you are a buyer, you can use filters on flippa to find premium websites easily. For sellers, you are right. Its very difficult to find the right buyers on flippa.

    • Web Marketing Tips

      getting buyer is always a tough task. That’s where marketing and advertisment came.

  • Muzi Mohale

    Interesting Daniel, I’m busy with a marketplace of startup websites. Idea also born from using flippa and noticing the large number of new websites for sale.

    Indeed there is demand for premium websites marketplace which will help both buyers and sellers save time.

  • Available domains blog

    I think you are right about the issue. Allocate your resources and start the website soon. I wish you good luck.

  • Joshu Thomas

    I agree with you !! Especially if the website approval method is most critical – its great if each website is manually approved as a premium website. This could make it a lot easier for potential buyers.

    Cheers
    Josh

    • Web Marketing Tips

      good idea, if you want to make it successful.

      Like in big forums there are moderators so that everything can be manage easily and smoothly.

  • Chris Guthrie

    Hey Daniel,

    Speaking from the perspective of someone who just sold a premium website (i.e. more than what typical Flippa websites sell for) most people that are running larger websites don’t like it to be easy for people to see how much their sites are making because of fear of competition etc.

    On the premium end you need to work with Investment Bankers if you want to get top dollar and what they do is qualify every buyer before they even get to see the URL. In other words I’d feel much more comfortable showing off my premium website to people with net worth in the millions of dollars than to people that are just scanning listings of high earning sites looking to see what they can copy.

    But as to your business idea – there are already are online marketplaces where you can go to look at premium websites and most of the time it’s investment banker websites. Just be prepared to provide financial documents and income statements etc. so that they know you have the money to actually afford buying the website you’re looking into.

    Here’s a link to the press release of the site I most recently sold through an investment banker:

    http://foundersib.com/Founders-Investment-Banking-Advises-thg-WebMedia-LLC-on-Strategic-Sale-of-NetbookReviewscom-to-IReviews,-Inc_53_pg.htm

    Let me know your budget for sites and I might be able to direct you to some good places to look.

    Chris

  • kiks

    You have a great idea go for it. I will be one to list a premium site for sale.

    • Web Marketing Tips

      he is giving away ideas so that you can a website or platform for that.

  • jason

    The ratio of bad to good is pretty accurate, but you guys keep making great content, so you’re definitely in the 1 category.

    • Web Marketing Tips

      great content and search engine traffic plays an important role if you want to get good price for your websites.

  • steve

    Good idea, but what do you consider premium website? Any qualifications that has to be meet first in order to fit in the category?

    • Web Marketing Tips

      yes daniel would love to know your explanation about it and yes with few examples.

  • Web Marketing Tips

    Daniel we would love to know your definition of premium websites with few examples.

  • Mike

    That’s a nice idea, Daniel. I do consider Flippa is a good place to sell websites but recently, the ratio of relist is increasing that makes me think of some crap buyers bid for big price and doesn’t pay at all. That prevents legitimate buyer have a change to touch to the website and it really hurts seller as well.

    An idea like that is nice, and I do like it a lot. But what are the market size for people who have net worth of thousands dollars to start off?

    • Web Marketing Tips

      flippa is certainly facing problem.

      They build this and bring a new platform for the sell and purchase, but now they should trace negative points and sort it out.

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