May 072011 Tagged with , , , , , 0 Responses

Tips on Using the BIN In a Website Flipping Auction

If you’ve tried selling websites in an auction on Flippa, you may have noticed the Buy It Now (BIN) choice. You may have even used it, but did you use it to your best advantage? On the other hand, if you’re new to website flipping, you’re probably not familiar with what the BIN is, so here is an explanation.

First of all, Flippa is at present the preferred place for individuals looking to buy or sell websites. It’s the largest too. When a seller lists a site for sale, he or she can put in the BIN option at any time. If a buyer finds the BIN price acceptable, he or she can buy the site immediately and the auction ends at that moment. It sounds easy, but what isn’t that easy is using the BIN to tactically to maximize the potential of the site price.

As an example, a seller put up a BIN price of $6,500, and a buyer immediately ends the bidding by purchasing the site with the use of the BIN. Seems like each one got what he wanted, right? However, the buyer told the site owner later on that he was willing to go up to $10,000 for the site! Essentially, the original owner lost out on around $3,500. So in this case, the seller should have waited, instead of putting up the BIN price prematurely.

Lesson learned; but when is a good time really to exercise the BIN? Check out the tips below to boost the profitability of your site.

Experienced website flippers recommend that you use the BIN option when the auction is coming to an end. One example is if there is a tense bidding battle happening between two or more buyers about two hours within the close of the auction then you should put in the BIN price.

Both experienced flippers as well as newbies should be aware that: if a bid is placed within four hours before the auction ends, Flippa extends the bidding for an additional four hours. But some prospective buyers could just as easily to leave the bidding having to wait for so long. At the same time, you as the seller are perhaps raring to have the process finalized as well.  

So the smartest move you can make is to fix the BIN option a bit over the most recent buyer bids. So for instance the last bid is around $5,000, then set a $5,500 BIN. A buyer who really has his eyes set on your website will grab that price. Although the buyer may have to shell out $500 more than he was prepared to give, the main thing for him is he got the website  and saved time because the bidding ended automatically. And you as the seller have save time as well, and probably got a higher profit than you anticipated.

Another situation where you would need to use the BIN option is when the auction closes within the next 6 to 2 hours. When this happens, it’s better to not wait until Flippa extends the bidding. In order to be certain that you make the sale even on a slow auction, offer a BIN to save time for both you and the buyer and just get the site sold. Before deciding on the price of the BIN, look at the latest bid.

For instance, there are still 8 hours left on an auction, and the latest bid is at $3,200, you can assume that the bid may get to as high as $3,500. At this point, it would be a good strategy to place a BIN of $4,000.  

By sticking to these guidelines and exercising good business sense, the BIN option is a smart choice to generate more revenue when you flip websites.

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