If you’re considering buying or selling an online business, two prominent platforms you’ll encounter are Empire Flippers and FE International. Both are well-known marketplaces specializing in eCommerce, SaaS, affiliate sites, and more, offering a range of opportunities for entrepreneurs.
Each platform, however, comes with its own set of strengths, weaknesses, and unique approaches to facilitating transactions. This article explores the key differences between Empire Flippers and FE International to help you choose the right option for your needs.
Whether you’re an aspiring entrepreneur looking to acquire a profitable online business or an experienced seller aiming to maximize your asset’s value, understanding these platforms is key. From the types of businesses available and their sale price multiples to the user experience and the support provided, there are several factors to evaluate.
Let’s break down these aspects to give you a clear and comprehensive overview of what each platform has to offer.
Overview of Empire Flippers and FE International
Empire Flippers
Founded in 2010 as AdSense Flippers, Empire Flippers has grown into a premier curated marketplace for buying and selling online businesses. With over $530 million in facilitated transactions, it has cemented its status as a leading player in the industry.
Empire Flippers is renowned for its rigorous vetting process, ensuring only high-quality and credible businesses are listed on their platform. This meticulous approach minimizes risks such as scams and fraudulent activities, offering peace of mind to both buyers and sellers.
The company operates on a global scale, supported by a team of industry-leading professionals, including M&A advisors, vetting advisors, and business advisors. This diverse expertise ensures comprehensive support throughout every stage of the process—from valuations and listings to negotiations and business migrations.
Empire Flippers’ dedication to exceptional customer service and attention to detail has earned it multiple Inc. 5000 awards, a testament to its rapid growth and industry recognition.
FE International
FE International is a specialist M&A advisory firm focusing exclusively on the sale of online businesses, particularly in the SaaS, e-commerce, and content site sectors. Known for its expertise in handling high-value transactions, FE International often works with businesses valued in the millions.
The firm’s approach is highly personalized, emphasizing confidentiality and discretion. This makes it an attractive choice for sellers of larger, more complex online businesses who value privacy during the sale process.
FE International’s team is composed of seasoned professionals with a deep understanding of the digital business landscape. They offer a full suite of services, including business valuations, targeted marketing to potential buyers, and managing the entire sale process from start to finish.
The firm’s success lies in its ability to effectively connect buyers and sellers, ensuring transactions are completed efficiently and to the satisfaction of all parties involved.
Types of Businesses Offered
Empire Flippers
Empire Flippers offers a diverse range of online businesses, catering to various investor profiles and business models. Some of the prominent types of businesses listed on their platform include affiliate marketing sites, Amazon FBA businesses, SaaS companies, eCommerce stores, and content sites. They also list businesses involved in dropshipping, display advertising, and membership sites, among others.
The platform is known for its thorough vetting process, ensuring that each business listed meets certain criteria of profitability, traffic, and revenue stability. This curated approach helps potential buyers find high-quality assets that align with their investment goals and risk tolerance. Whether you are looking for passive income through affiliate sites or more involved assets like eCommerce stores, Empire Flippers provides a wide selection to choose from.
FE International
FE International specializes in higher-value online businesses, particularly focusing on SaaS, eCommerce, and content sites. They have a strong reputation for handling complex and larger transactions, often involving businesses valued in the millions.
FE International’s portfolio includes a variety of digital assets, such as subscription-based SaaS models, scalable eCommerce platforms, and high-traffic content sites.
The firm’s expertise lies in valuing and marketing these sophisticated online businesses to a network of serious and qualified buyers. FE International’s approach is tailored to the unique needs of each business, ensuring that the sale process is managed with the utmost care and confidentiality. This makes them an ideal choice for sellers of larger, more complex online businesses looking for a professional and discreet transaction process.
Sale Price Multiples and Commission Structures
Sale Price Multiples
The sale price multiples for online businesses listed on Empire Flippers and FE International can vary significantly based on several factors, such as the type of business, its profitability, growth potential, and market demand. On Empire Flippers, the multiples are calculated by multiplying the average monthly profit of the business by a factor that typically ranges from 20X to 40X or more. For instance, a business generating $5,000 per month in net profit could be listed for $125,000 to $200,000, depending on the multiple applied.
FE International also employs a multiple-based valuation system but tends to focus on higher-value businesses. The multiples here are influenced by factors such as the complexity of the business, its scalability, and the level of competition within the market.
Businesses like SaaS platforms, eCommerce sites, and high-traffic content sites often command higher multiples due to their potential for long-term growth and stability.
Commission Rates
The commission rates for Empire Flippers and FE International differ in both structure and percentage. Empire Flippers applies a tiered success fee system based on the sale price of the business:
- For sales up to $700,000, the fee is 15%.
- For sales between $700,001 and $5,000,000, the fee is 8%.
- For sales over $5,000,000, the fee is 2.5%.
This tiered approach is designed to balance costs for both smaller and larger transactions.
FE International, on the other hand, typically charges a more standardized success fee. However, the exact percentage may vary depending on the specific services provided and the complexity of the transaction. FE International’s fees are often negotiated on a case-by-case basis, reflecting their personalized and often more intricate approach to handling transactions.
User Experience and Listing Information
Empire Flippers Listing Experience
The listing experience on Empire Flippers is designed to be streamlined and thorough. When you decide to list your online business, you start by filling out a detailed form on their website.
This form requires information about your business, including financials, traffic data, and other relevant details. Following the submission, you will typically be contacted by a staff member who will conduct a preliminary review and may schedule a call to ask additional questions about your site.
Once your business is approved for listing, it undergoes a rigorous vetting process. This involves a thorough review of your business’s financials, traffic, and operational aspects to ensure its legitimacy and value.
Empire Flippers assigns a vetting specialist to guide you through this process, which can be quite detailed but is aimed at protecting both buyers and sellers. The vetting process includes verifying documentation, such as profit and loss statements, and checking for any potential red flags.
After the vetting is complete, your business is listed on the Empire Flippers marketplace with detailed information, including financial metrics, traffic statistics, and other relevant data. Prospective buyers are required to make a monetary deposit to gain access to private website information, which helps filter out serious buyers and adds a layer of security for sellers.
FE International Listing Experience
FE International offers a more personalized and tailored listing experience, particularly suited for higher-value and more complex online businesses. When you decide to list your business with FE International, you will typically engage in an initial consultation to discuss the valuation and sale strategy of your business. This consultation is often conducted by experienced M&A advisors who have a deep understanding of the digital business landscape.
The listing process involves a detailed valuation of your business, which includes analyzing financial performance, market position, and growth potential. FE International then creates a comprehensive marketing package that highlights the key strengths and opportunities of your business.
This package is presented to a network of pre-qualified buyers, ensuring that your business is exposed to serious and capable purchasers.
FE International’s approach is highly confidential and discreet, which is particularly important for sellers of larger or more sensitive online businesses. Throughout the listing and sale process, FE International provides continuous support and guidance, managing negotiations and ensuring a smooth transaction from start to finish.
Due Diligence and Purchase Support
Due Diligence Process
The due diligence process is a critical step when buying or selling an online business. Both Empire Flippers and FE International have robust systems in place to ensure transparency and accuracy.
At Empire Flippers, the process begins with a thorough vetting of the business before it is listed. This includes verifying financials, reviewing expenses, confirming seller ownership and identity, and analyzing the business’s backlink profile, among other factors.
Once a buyer shows interest, they are encouraged to conduct their own due diligence, which involves a detailed risk assessment. This includes checking for potential red flags, verifying analytics data, affiliate portals, and profit and loss statements.
Empire Flippers offers a comprehensive checklist to help buyers evaluate the business carefully, ensuring they make an informed decision.
FE International also performs a meticulous due diligence process, tailored to the needs of higher-value and more complex online businesses. Their approach includes a detailed analysis of the business’s financial performance, market position, and growth potential.
FE International works closely with both buyers and sellers to gather and verify all necessary information, minimizing the risk of unforeseen issues after the purchase.
Post-Purchase Support
Post-purchase support is an essential consideration when choosing between Empire Flippers and FE International. Empire Flippers offers a structured handover process to ensure a smooth transition of the business. This includes access to detailed documentation, facilitating communication between the buyer and seller, and providing support during the migration period.
Empire Flippers also has a dedicated team that assists with the transfer of assets, such as domain names, social media accounts, and other critical components of the business.
FE International, recognized for its high-touch approach, provides extensive post-purchase support as well. They focus on ensuring the transition is handled professionally and efficiently, minimizing any disruption to the business.
The FE International team remains available to address any questions or concerns after the sale, helping buyers succeed in managing their new business. This level of support is particularly valuable for buyers of larger or more complex online businesses, where a seamless transition is vital.
Legal and Transactional Support
Empire Flippers
Empire Flippers provides a structured legal and transactional framework to facilitate smooth and secure transactions. When a buyer expresses interest in a listing, they can “unlock” the listing to gain full access to detailed information about the business.
This process is governed by the Empire Flippers Terms of Use, which prohibits users from sharing confidential information or using it for any purpose other than evaluating the asset.
Once an offer is accepted, the terms of the purchase are covered by Empire Flippers’ Terms of Use. However, buyers and sellers have the option to enter into a custom Asset Purchase Agreement (APA) that includes specific terms agreed upon by both parties. In such cases, the buyer and seller would need to hire a lawyer to draft this custom APA.
Empire Flippers also ensures that the migration process is legally compliant. For instance, if the purchase includes any type of delayed payment, such as an “earn out” payment, the buyer is required to operate the business in a manner that protects the seller’s ability to receive the deferred payments.
This includes devoting sufficient resources to ensure the business operates with a reasonable likelihood of success and not transferring or assigning material aspects of the business without the seller’s prior written consent.
FE International
FE International offers robust legal and transactional support, emphasizing confidentiality and formal agreements. Before gaining access to detailed listing information, potential buyers are required to sign a Non-Disclosure Agreement (NDA) that is valid for two years.
This NDA applies to all listings on FE International, ensuring that sensitive business information remains confidential.
When an offer is made and accepted, FE International drafts a Letter of Intent (LOI), which marks the beginning of the advanced due diligence process. Following the LOI, FE International prepares a legally binding Asset Purchase Agreement (APA) that formalizes the specifics of the deal, including the assets to be transferred, non-compete duration, and post-sale training.
This comprehensive approach ensures that all aspects of the transaction are clearly defined and legally enforceable.
FE International’s legal support extends to ensuring that all transactions are handled with the utmost care and professionalism, protecting the interests of both buyers and sellers throughout the process.
Pros and Cons
Empire Flippers Pros & Cons
Pros
Empire Flippers offers several advantages that make it a popular choice for buying and selling online businesses. One of the key pros is its curated listings, which ensure that only high-quality, profitable businesses are listed on the platform.
This stringent quality control process protects both buyers and sellers by minimizing the risk of scams and fraudulent activities.
The platform also boasts a large audience of serious buyers, which can lead to faster and more successful sales. Additionally, Empire Flippers requires buyers to provide proof of funds, ensuring that only serious and financially capable buyers are involved in the process.
The wide range of services included, such as thorough vetting, detailed documentation, and post-sale support, adds significant value to both buyers and sellers. The remote and efficient operations of the Empire Flippers team, with their comprehensive written documentation and processes, further enhance the user experience.
Cons
Despite its many advantages, Empire Flippers has some notable drawbacks. One significant con is the limited number of listings below $100,000.
The platform primarily lists businesses with monthly profits of at least $2,000, resulting in most listings being in the six or seven-figure range. This makes it less suitable for buyers or sellers operating in the lower price brackets.
Another con is the high fees associated with using Empire Flippers. The platform charges a blended success fee that can go up to 15%, which is near the industry’s high end.
These fees can add to the overall cost of selling a business, potentially reducing the net proceeds for sellers.
The strict vetting process, while beneficial, can be time-consuming and may exclude some businesses that do not meet the platform’s criteria. This can be frustrating for sellers who want to move quickly and may find it challenging to list their smaller or less established businesses.
FE International Pros & Cons
Pros
FE International has several strengths that make it an attractive option for those involved in higher-value online business transactions. One of the key pros is its expertise in handling complex and larger transactions, often involving businesses valued in the millions. FE International’s personalized approach and focus on confidentiality make it an ideal choice for sellers of larger, more sensitive online businesses.
The firm’s ability to connect buyers and sellers effectively, ensuring that transactions are completed efficiently and to the satisfaction of all parties, is another significant advantage. FE International’s comprehensive marketing packages and detailed valuations help highlight the key strengths and opportunities of the listed businesses, attracting serious and capable buyers.
FE International’s post-purchase support is also noteworthy, with a dedicated team available to address any questions or issues that may arise after the sale. This ensures a smooth transition and helps buyers succeed in taking over the new business.
Cons
While FE International offers many benefits, there are some potential downsides to consider. One con is that the platform’s focus on higher-value businesses may limit its appeal for buyers or sellers operating in lower price ranges.
FE International’s services are generally tailored for more complex and larger transactions, which might not be suitable for everyone.
Another potential con is the more personalized and often more intricate nature of the transactions, which can result in higher costs and more time-consuming processes. While this level of service is valuable, it may not be as cost-effective or as quick as other marketplaces for smaller transactions.
Additionally, FE International’s success fees, although negotiated on a case-by-case basis, can still be significant and may add to the overall cost of the transaction. This needs to be carefully considered by both buyers and sellers when evaluating the total cost of using the platform.
Personal Experiences and Case Studies
Empire Flippers Experiences
Several users have shared positive experiences with Empire Flippers, highlighting the platform’s efficiency and support throughout the buying and selling process. One notable case involves a buyer who purchased a website through Empire Flippers and had a highly satisfactory experience.
Despite initial nervousness about wiring a large sum of money to a company he didn’t know well, the buyer found the process to be smooth and well-managed. The Empire Flippers team alleviated his concerns through an initial introduction call and ensured that the transaction was handled professionally.
Another seller shared a similar positive experience, noting that Empire Flippers’ prior knowledge of his website, from a previous sale, streamlined the vetting process significantly. This allowed his listing to go live on the market sooner, and he received an offer within 48 hours of the listing being posted. The seller appreciated the fair terms, conditions, and commissions of Empire Flippers, which made the selling process straightforward and protective of his interests.
In addition, buyers have praised Empire Flippers for their in-depth vetting process, even though it may not substitute for personal due diligence. One buyer noted that while the vetting was thorough, it was still important to conduct their own due diligence before making an offer.
This approach helped build confidence in the transaction and ensured that the buyer was well-informed about the business they were purchasing.
FE International Experiences
While FE International does not publicly share as many detailed case studies as Empire Flippers, the experiences of its clients often reflect a high level of satisfaction with the personalized and professional service provided. Sellers of higher-value online businesses appreciate FE International’s expertise in handling complex transactions and the confidentiality maintained throughout the process.
FE International’s clients often highlight the firm’s ability to connect them with serious and qualified buyers, ensuring that the sale process is efficient and successful. The firm’s comprehensive marketing packages and detailed valuations are also praised for their ability to highlight the strengths and growth potential of the businesses being sold.
Moreover, FE International’s post-purchase support is frequently mentioned as a significant advantage. Buyers and sellers alike appreciate the ongoing assistance provided by the firm, which helps in ensuring a smooth transition and addressing any issues that may arise after the sale.
This level of support is particularly valuable for larger and more complex online businesses, where a seamless transition is essential for continued success.
Choosing the Right Platform for Your Needs
Evaluating Your Business Model
When deciding between Empire Flippers and FE International, it is important to evaluate your business model and how it aligns with the strengths of each platform. If you have an online business that fits into the categories of affiliate marketing, Amazon FBA, or content sites, and it has a relatively straightforward ownership structure, Empire Flippers might be the more suitable choice. Their platform is well-versed in handling these types of businesses and has a large audience of buyers actively searching for such assets.
On the other hand, if your business is more complex—such as a SaaS company or a high-value eCommerce site with multiple stakeholders—FE International’s expertise would be more beneficial. FE International specializes in valuing and selling businesses with intricate structures, often using methods like EBITDA for businesses valued over $10 million.
Understanding your business model also involves examining factors such as product margins, owner time involvement, and traffic sources. For example, if your business relies heavily on organic SEO rankings and has stable revenue streams, FE International’s detailed valuation process could highlight these strengths to attract potential buyers.
Considering Your Financial Goals
Your financial goals play a significant role in choosing the right platform. If you are looking to sell a smaller online business with a lower valuation, Empire Flippers’ tiered commission structure might be more appealing. However, if you are selling a higher-value business, the personalized and often more negotiated fees of FE International could provide better value, despite potentially being higher overall.
Consider the age of your business, its gross and net income over the last three years, and the stability of its revenue streams. These financial metrics are critical in determining the value of your business and will influence which platform can best showcase your business’s financial health. For businesses with stable and growing revenue, FE International’s comprehensive marketing packages can emphasize these strengths to attract serious buyers.
Additionally, think about the operational costs and the ease of transferring the business to a new owner. If your business has complex operational processes or significant owner responsibilities, FE International’s post-purchase support could be invaluable in ensuring a smooth transition. Conversely, if your business is relatively simple to manage, Empire Flippers’ streamlined process might be sufficient.
Conclusion
In conclusion, choosing between Empire Flippers and FE International depends on the specific needs and goals of your online business transaction. Empire Flippers is ideal for those looking to buy or sell a wide range of online businesses, including affiliate sites, Amazon FBA businesses, and smaller eCommerce ventures. It stands out for its robust vetting process and access to a large pool of potential buyers.
On the other hand, FE International specializes in higher-value transactions, particularly in SaaS, eCommerce, and content sites. It offers a personalized and confidential approach with an impressive success rate of 94.1%.
When making your choice, consider the complexity of your business, your financial goals, and the level of support you require during and after the sale. Whether you opt for Empire Flippers’ curated marketplace or FE International’s tailored services, choosing the right platform will significantly impact the success of your transaction.
Take the time to evaluate your business model, financials, and the specific strengths of each platform. By doing so, you will be better positioned to achieve a successful and profitable transaction.
