Revenue, Cost, Profit Claims
Flippa can only verify the numbers claimed and request that all sellers add proof of revenue for all businesses generating a profit.
Websites / Apps:
Read-only access or video walkthrough of revenue analytics, Admob, or eCommerce reports. Always ask for any analytics that may be associated with the account.
FBA:
Amazon Seller central video walkthrough or read-only access. Make sure to get proof of stock costs and shipping costs from the manufacturer. Look at every line item in the P&L and request for proof.
Verifying Ownership
Flippa verifies ownership of the main asset. However, if the listing has multiple assets we recommend that a full verification is done by the buyers.
Websites / Apps:
You can request read-only access to any analytics on the site or for other proof from the seller to verify ownership of the asset.
FBA:
Amazon Seller central video walkthrough or read-only access.
Monetization
Many online businesses will have more than one revenue source, so it is important to fully understand how the business is monetized.
Websites / Apps / FBA:
It is important to identify all the monetization methods an online business uses to make money. This can be done by making sure all revenue and cost amounts are equal to what’s claimed on Flippa. Once you have identified how the business is monetized, make sure you’re capable of performing those same tasks (such as posting affiliate links or stocking inventory), or can easily learn how.
Revenue Transferability
It is important to verify that all revenue can be swapped to a new owner, upon buying an asset. This is to make sure the business is still profitable upon taking ownership. Buyers should look over the terms of any third party accounts that are going to be transferred or created.
Websites:
Make sure that the revenue account can be transferred or that opening a new account is straightforward and easy. For example, AdSense accounts cannot be transferred, while PayPal accounts can easily be transferred.
Apps:
For in-app purchases, Advertising services like AdMob or ChartBoost can easily be swapped by placing your own ad IDs into the app. Many sellers can do this for you upon transfer. For in-app purchases, one just needs to take control of the app and change the payment destination.
FBA:
It is up to the buyer to make sure that the FBA account is transferrable. As a seller, you can make sure the business can be transferred by talking to Seller Central.
Tracking
Verifying traffic and analytic information is essential to making sure the business is performing as expected.
Websites:
While Flippa does show Google Analytics stats from the listing itself, we highly recommend getting the full picture by asking for Google Analytics “read-only” access.
Apps:
We recommend getting “read-only” access from the seller’s developer account to verify installs and revenue.
FBA:
We recommend getting “read-only” access to the seller central account to verify product sales and revenue.
