Translate.com sold on Flippa for $853,000

Translate.com sold on Flippa for $853,000

Translate.com is a translating website with almost 2m visitors per month. The business sold last November on Flippa with a winning bid of $853,000. The auction, which had no reserve created a lot of interest and attention in the buying community.  

We caught up with the buyer Volodymyr to discuss the purchase. In the interview below, he talks about how long he was looking for an online business before purchasing the site, his immediate plans and why Flippa is his preferred platform.

 

Interview with the buyer – Volodymyr Nesterenko

Were you looking for a website with this type of organic traffic for long before you bought this site on Flippa?

No, we were not looking specifically for translation traffic, we were just watching what was for sale. We started doing that about 2 years ago and normally we pay more attention to career and education (SaaS) and pet care goods (Amazon Affiliate model). Previously we had a couple of good deals there. There were also sporadic opportunities in the ESL (English as a Second Language) space too, but no deals, so when Oleksii spotted Translate.com, we decided it was a good place to start.

 

What made you choose to buy Translate.com? Where you aware of the site before it became available for sale?

We hadn’t heard of Translate.com before, but we were ready to buy something in the ESL space. The domain name is absolutely epic, but we’d have never done it if it was only about the domain. The previous owners did a good job, there was a real product with a well automated workflow under the hood. On top of this, tens of thousands of freelance translators from all around the world.

 

What were your immediate plans when you first bought this site? Have you executed these?

The immediate plan was to transfer everything smoothly and not to break anything. For example, we had to take over two mobile applications and numerous integrations, such as an integration with Zendesk which enables our B2B clients to translate support tickets. Translate.com carries out human translation in a really frictionless way and we didn’t want clients to feel any pain because of the ownership change. After the transfer, we audited the programming code, did some critical fixes. We are now renovating the site and apps and also working on a strategy for this line of our business. Realistically, we can increase revenues 10x in 2-3 years.  

 

How did you find your experience with Flippa?

The listing was hot (more than 170 bids) and the overall deal wasn’t easy but everything worked well. We spotted the sale on Flippa, which tells for itself, and we appreciated a simple process too. Listing page, chat with a seller, the auction, escrow service – everything was great and we didn’t need anything on top. Maybe some extra help with the asset purchase agreement, but that’s it. We are watching many platforms where people buy and sell business and Flippa is definitely one of the few on the top of our list

 

Start-up hustle a fairytale: ‘build it from scratch’ not only success story

Start-up hustle a fairytale: ‘build it from scratch’ not only success story

Don’t start a business, buy one. Co Founder of Flippa @Mark Harbottle says ‘Buy your way to growth’. ‘Why aren’t more founders considering acquiring an existing business with traction — not only as a growth strategy but as a go-to-market strategy for their start-up? Why not acquire a business with existing products, customers and cash flow — something they can leverage as a foundation to grow their empire?’


 

According to the Small Business Association (SMB), 30 per cent of businesses fail in the first two years and 50 per cent within five years. US census data suggests only 9 per cent of small businesses, where the owners run them full-time, have more than $1 million in sales annually. So if you manage to “hustle” your way through the first few years of your start-up, chances are your business won’t grow beyond $1m in revenue.

Of course, it’s not all doom and gloom. There are many great founders capable of producing amazing products. Some early-stage start-ups solve real problems and have a huge market opportunity, but the majority struggle to find sustainable distribution channels and consistent growth.

 

This was originally published in The Australian, click here to continue reading.

Broker Interview – Domain Magnate

Broker Interview – Domain Magnate

This week we caught up with Michael Bereslavsky, the founder of Domain Magnate a broker partner of Flippa. Michael has used Flippa for several years and has had 49 transactions on platform totaling $446k.  In the video interview below, Michael talks about his experiences on Flippa, his advice to buyers and sellers and a run through of three businesses he currently has listed for sale on Flippa. See the full interview below and a summary of Michaels advice. 

 

Advice for buyers

Don’t look at buying a website as a passive investment, but as a business. As such any business has risks, it needs a strategy, procedures, clients, employees/contractors, management and growth. Viewing it this way will help you get a clear picture of the main components of a deal: risks and how to assess and mitigate them; short and long term growth opportunities; trends and numbers.

 

Advice for sellers

Be more upfront about your numbers and risks, and what it really takes to manage the business, and provide good after sale support. Focusing on the long term perspective, and really helping your buyers, rather than simply trying to get the deal closed quick every time, will help you get repeat buyers, good deals, and even higher prices.

The three businesses in order as mentioned:

Business 1: TopTool Advisor $16,500

Business 2: Advertising business $64,500

Business 3: SaaS business $75,000

To find about more about how Domain Magante can help with your business sale, you can submit your site to see if it qualifies for direct acquisition. Domain Magnate is always looking for content businesses and likes to close deals quickly and professionally, and can often give you an offer and start a deal within days.

Alternatively, If you have a question on a specific listing you can reach out via Flippa. 

 

 

New features. Reduced Flippa fees. It keeps getting better.

New features. Reduced Flippa fees. It keeps getting better.

This month Flippa has again demonstrated a commitment to building out a frictionless sales experience with the world’s largest network of buyers. Did you know that 4250 new verified buyers join Flippa each month?

Adding to our Quickbooks online integration launch last month we’ve added a new Google Analytics integration, Non-Disclosure Agreement functionality for higher value listings and free syndication to a network of partner sites.

 

Google Analytics Integration

With one-click connection to GA, business owners can now publish traffic data on their listing and in-turn assist buyers with verifying the health of a business.

How does it work?

 

Step 1

Simply choose to list your website or online business with Flippa, step through our simple listing builder and choose to connect your Google Analytics account. You’ll be asked whether you wish to connect your traffic data. When prompted, log in to GA and choose the account associated with your website.

Step 2

Once you have connected and launched your listing, a pop-up box will be visible to buyers that your business has connected your site traffic from GA. 

 

 

There will also be a table displaying your websites monthly page views and number of users to the site. 

 

Non Disclosure Agreement for Higher Value Listings

High-value listings can now protect sensitive information with a simple to use Non-Disclosure Agreement.

 

Buyers that want access to key confidential data, like your business name or profit & loss statement will now have to register as buyers, create a profile, go through Identity Verification, accept the NDA terms and finally, identify why they are interested in your business. This replaces the old NDA functionality on Flippa.

 

Free Syndication

Flippa will now syndicate your listing to multiple directory businesses for free. Simply ask your account manager. This is available for listings over $50,000 only.

 

So what is the new pricing scheme?

It’s simple. You pay a listing and a success fee. The listing fee is due on all listings and the success fee is payable when you sell.

 

All listings, regardless of type, size or location, are charged at a $15 per month listing fee. While we are the only true marketplace and platform to buy and sell a business this also makes Flippa less expensive than the mainstream directory websites.

Of course, you can choose to cancel your listing at anytime.

As it relates to Success Fees. These are payable by the seller or designated owner of the account. These fees are now variable and are based on your final selling price. For further detail, refer to success fees

 

The breakdown:

If you sell a website, domain, app or business between $1m to $5m your success fee is now 5%

If you sell a website, domain, app or business between $500k to $1m your success fee is now 7.5%

If you sell a website, domain, app or business between $1 to $499k your success fee remains at 10%

 

Finally, Flippa also partners with a network of brokers. Instead of owning the sales process yourself and working with a Flippa account manager, you can choose to work with one of our network of partners. These brokers will manage the sale for you and you will still get the benefit of the Flippa platform and the world’s largest network of buyers. If you do choose to partner with a broker the success fee is 15%. This is shared between Flippa and the broker.

 

We currently do not charge buyers for use of Flippa.

 

We are committed to building out a frictionless sales experience and we think we are making good ground. That said, we are always looking for feedback so if you require clarification or would like to provide feedback feel free to get us on [email protected].

 

Sold on Flippa: A SaaS business that builds your Instagram following

Sold on Flippa: A SaaS business that builds your Instagram following

With 800m users worldwide, Instagram is a critical marketing medium for small business. Brands can tell stories, share customer stories and start a dialogue and all this leads to engagement and ideally paying customers. Pushgram, a SaaS business that sold on Flippa helps businesses and users grow their Instagram community and increase engagement with their brand.

 

What is the product?

Pushgram is marketing software that helps small businesses on Instagram by automating activity including comments, likes and follows. It’s designed to boost interactions, engage with users and to connect with their target audience. Rather than manually carrying out such activities and searching for your target audience, Pushgram does it all for you.

Pushgram charges its users a monthly fee and has three different pricing plans based on the number of ‘actions’. This differs to most competitors who charge based on time. ‘Actions’ are the tasks the software undertakes on its user’s behalf. When a users Pushgram account likes a picture, comments, follow or unfollows a user, each of those actions is counted as 1 action.

 

What makes this such a popular product?

The service is reliable, effective and reasonably priced. If users settings are optimized and they’re using likes/comments/follows and unfollows, they can expect to gain as much as 75+ real and targeted followers a day. It mimics a user’s natural behavior.

Pushgram also works from a branding perspective. It can be set up so that it engages with audiences that are interested in your brand. This is particularly important for users and business that rely heavily on Instagram as a sales funnel. It’s also safe to use.

Customers are not breaching any Instagram rules by using Pushgram. Instagram has terms and conditions around selling or purchasing fake followers and likes but not for this type of software. The increased engagement that you gain from Pushgram is organic, from real users with real accounts. It is an easy solution to an otherwise manual and arduous task.

 

Who is the Pushgram customer?

The Pushgram customer is individuals and users who use Instagram for business and want to increase their following and grow their brand.

 

What made this business so appealing to prospective buyers?

The business has been operating for almost three years and has annual profits of $40,000. The business has a low time commitment to run, with the previous owner spending a few hours a week replying to customer emails and engaging the assistance of a developer when necessary. The business is well set-up, has an established customer base and a social presence of over 10k.

How did Flippa assist with the sale?

Flippa carried out a direct marketing campaign for Pushgram which included an interview with the seller which was written up and sent out to our database in a marketing email. From this, a buyer came forward and made an offer. Pushgram’s listing had over 648 views and the owner utilized Flippa’s escrow service which guarantees safe and secure payment.