Flippa Sets A New Record – $1 Million In Sales For One Week

Flippa announced on their latest blog post that they set a new record – $1 million in sales for one week. Here is a screenshot of the stats:

Flippa Sales Record

While that’s pretty impressive by itself, what I found interesting was this little nugget on the blog post:

“…the average price of property sold in the last seven days was $2,675, and a big slice of the action was in more modestly priced properties.”

If the average was really that low, then that means there were a lot of websites sold the past seven days! So much for a summer slow down.

What I want to know is if this $1 million figure includes auctions that don’t actually close. As you all know, I cover the most active and top selling auctions on my Market Snapshots and there are a fair number of websites that don’t actually close. There was one week where two of the top sellers were relisted the following week because apparently the buyers bailed when they “sold” the first time around.

I’m seeing more and more auctions relisted because buyers don’t follow through. It seems to be a problem at Flippa right now. If my gut feeling is correct – that they count all auctions that end as “sold” (regardless of whether they actually close or not), then this figure is exaggerated. Still though, they had a good week so I won’t take that away from them. Congrats Flippa!

  • “If the average was really that low..”

    There are lies, damned lies and statistics. Choosing a week when one or two large sites sold (or apparently sold) could make a big difference to the average price.

    I did a quick calculation of the average for the day after that blog post i.e. 21st of August. My calculation came nowhere near the $2,675 figure. In fact, it wasn’t even half or a quarter of that. It was a whisker over $600.

    Get a dumbass poster bidding a few million dollars for a site and Flippa’s average will shoot up to $100K. When that happens expect a press release to boast about the new record.

    “What I want to know is if this $1 million figure includes auctions that don’t actually close”
    Of course it does. It’s about PR, about pumping up the faithfully, it’s getting them to shout Hallelujah! πŸ™‚

    Good question, Travis. Funny how others don’t see the elephant sized fly in this ointment.

    • Travis

      Clinton:

      As always, great analysis and insight. I didn’t even think of the obvious – that the average sale price would be pulled up if just a few big sales took place…duh. I don’t know how I missed that!

      The bottom line is the numbers were indeed exaggerated.

      Travis

  • This is an outstanding effort for the guys at Flippa, and definitely an indication that the market is not slowing down, rather, it is speeding up.

    Although, as much as startup sites are selling for less and less every day, this to me also indicates that the quality of websites that are listed on Flippa is also increasing, which is great! Means that people are getting the hint about what the real opportunity is on Flippa.

    • Travis

      I agree – although you can’t ignore the number of auctions that don’t actually close. There have been a handful of high-valued sales that never actually occurred.

      Travis

      • Notice how they don’t talk about median πŸ˜‰

        • Travis

          Exactly…lol. Justin over at FlipFilter has all the data so I should track him down to get the median prices over the past few months. It would be interesting to know.

          Travis