Blatant Traffic Frauds on Flippa (buy and sell website)

Read this before your buy a website on Flippa.

Recently, I was watching an auction on Flippa that eventually sold for over $100K.

I watched the auction becuase I was curious how much the market would pay for a site that seems to provide an inflated or fake traffic stats. This is only my assumption and you should not take my word for it becuase I could be wrong.

So let's discuss why I think the traffic stats are fake.

Basically, the site claims that it generates over 56% of its traffic from Organic search traffic from Google.

In total, the site generates 2.6 million visits per month. Yes. You read it right. 2.6 million visitors every month and 1.2 million of them from Google.

I find this traffic stats very hard to believe becuase the site is not that popular. Plus, the auction also fails to provide a list of keywords that it ranks for to justify this many organic traffic.

So it's really tough to verify that the organic traffic is real.

To my surprise, almost everyone watching the auction were seemed to be sold that the organic traffic is real and only one person out of the 70 comments questioned it.

I guess everyone was on the same notion at the time that I was that if it shows on the Google analytics that traffic is labeled Google / Organic, it must be real.

But when I put 1.2 Million Organic Traffic every month into perspective, I start become very skeptic. It is just so hard to beleive this site receives this many organic traffic.

So I started digging around and do my own due deligence.

One comment from the auction is that the main keywords that the site ranks for only have 8,000 searches in Google every month. Plus, the site only ranks #3 in the search results so it is likely only getting a third of that.

If this is the case, how can this website generate 1.2 Million Organic traffic every month?

Right away, I was sold that the traffic stats was fake.

But how can you fake the organic traffic stats? Google is so advance with their algoritm that it's bullet proof with any rigging.

At that point, my focus shifted to "how can I fake website traffic stats so that it looks like it is receiving organic traffic from Google?"

Thank goodness for Google search, I may have found my answer.

There are a few sites that provide traffic or solution to fake traffic referrers.

Basically they redirect the inbound traffic from anywhere and redirects it to Google before it lands on the website destination.

The result is, when traffic arrives on the destined site, Google analytics thinks the traffic it's getting is from Google.

Bingo!

These sites are so good at it that they are able to provide Facebook, Twitter, Tumblr, StumbleUpon and even the new search engine DuckDuckGo as referrers.

Here are the two I discovered. There's probably more out there so if you know submit them on the comment.

FakeReferrer.com does not provide traffic but allows you to redirect your link via their shortening url so that if you share or use this link to buy traffic, the visitors will be rerouted to Google first before it arrives on your site. It cost $10 to shorten 10 URLs.

TrafficHitz.com provides traffic to your website that are reffered from Google and other popular sites like Facebook, Stumble, Tumblr etc. The price is pretty cheap $2 for 1,000 visitors. So I suspect that the traffic are most likely popunders or interstitials.

After this discovery, I had to test it for myself to make sure it really works. I've been seeing a lot of people selling websites on Flippa with huge organic traffic but the site doesn't even rank at all.

I own a content sharing website so I wanted to test the fakereferers for myself. Since I wanted traffic I used TrafficViews becuase it's an all in one solution to do my test. I'm sure I will get the same results if I used Fakereferers.

I purchased traffic referred from Google, Stumble, URL.com and DuckDuckGo

I did the test for about a month so I can really see the quality of the traffic and if it makes my stats look legitimate.

I buy popunder traffic all the time. Usually with 10 seconds average session duration and expectedly, TrafficViews have similar duration. So I think they use popunder traffic to provide visitors.

Surprisingly, it worked. My Google Analytics showed that the site received huge amount of organic traffic. This is upsetting to me becuase if this is possible, then people are getting scammed by thinking they are buying a website that is naturally receiving organic traffic.

Of course, for pros like me, we don't get fooled by this becuase all you really have to do is asked the seller to disclose the keywords that the site ranked for and then you do your research there. It's not that hard to tell.

Note:

Keep in mind that I'm writing this blog to inform you of what is possible out there and what are the available tools people can use to rig and fake traffic stats.

I'm not endorsing on rigging and faking your traffic. I beleive it's important for people to know that this stuff exist so they can be more informed and have better judgement next time they purchase a website on Flippa.

Why Use Escrow Over Paypal When Buying and Selling Websites on Flippa?

  

VS 

Obviously, I wouldn't recommend using escrow for low amount transactions becuase it will end up costing you more money.

Remember This: Escrow charges around $40 for transferring money to your bank account.

I would only recommend using Escrow for transactions over $500.

Lately, I've been very good at preventing fraud that I upped that amount to $5,000.

I will cover my methods of preventing fraud in another article. So for now let's discuss why using Escrow is safer than Paypal for both buyer and seller.

Paypal works as a payment processing like credit card companies. So all they are obligated to do is collect the payment, verify that the payment is legitimate through their automated verification software. And in case of dispute, they want the buyer to provide proof that the tangeable goods we're in fact delivered to the buyer.

The issue becomes more complicated for buying and selling websites becuase there is no Tangeable Goods to deliver. Websites and Domains are virtual.

So Paypal have not real business in getting involved with any disputes when it comes to virtual goods sale.

Basically, I've face a few scenarios that went my way and the buyer's way.

Paypal Scenario #1: Buyer Files a Chargeback

This is a very common occurance for flippers on Flippa. Sometimes a buyer will use a stolen credit card and pays for the site using it. The real owner receives the bill at the end of the month and calls the credit card company to reverse the transaction.

Of course, Paypal would like to be on the credit card company's good side so they will honor the chargeback and take the money from the Seller's account.

When this haapened to me, it was for $3,500 and it put my Paypal account to negative.

I argued the chargeback but of course, Paypal already gave the credit card company their money back so it was pointless.

I have not met sellers that have won got their money back from buyer's filing chargebacks with their credit card company.

So I definitely learned a hard and expensive lesson there. Not only that I lost the funds, I also lost the website and the domain.

I tried to get the domain back but was unsuccessful. Once it's transferred to another account, there is very little thing you can do to get it back. Godaddy only told me that I should contact an internet lawyer. :-) Yes. This is what Godaddy told me even though I transfered the domain to another Godaddy account they were still unable to reverse the transfer becuase it's not their business to get in the middle of a dispute.

So you definitely have to be careful accepting Paypal payment becuase even legitimate buyers will play dumb with their credit card company and pretend they did not authorized the transaction.


Paypal Scenario #2: Buyer Files "Item Significantly Not As Described"

You have no idea how common this is in the world of selling websites in Flippa.

Buyer asks no questions, wins your auction, pays immediately via Paypal. Sound great right? A perfect buyer?

Well. When this happens, it usually throws a red flag on my fraud meter. I've become good at this I can smell it from a mile away. :-)

Obviously, not every buyer means bad for you. Some are just really no bs type and want the site without any questions.

So let's just discuss the bad ones.

Usually buyers that do this have an intent to try to exploit Paypal's no-care-for-seller-of-virtual-goods attitude to their advantage. These Flippa cowboys want a copy of your site and don't want to pay you a cent for it.

So they win the auction and pays for it immediately. So you transfer the domain and website and once they have it in their control, they dupe it and file and dispute on Paypal as "Item Significantly Not As Described" in an effort to get their money back and return to your the domain and the website.

The good news for sellers is, Paypal gives no protection to Buyers buying Virtual Goods. So even if the item you sold is "really" not as described, the disputed will be resolved to buyer's favour.

Where this becomes a huge issue is when naive buyers purchase a site that have fake traffic and revenue stats.

Just remember it is not Paypal's job to determine who is right or wrong. So before you purchase something do your due deligence to ensure the stats and reveue claims are real.

So why Escrow provides more Buyer and Seller Protection than Paypal?

Obviously, I wouldn't recommend using escrow for low amount transactions becuase it will end up costing you more money.

Remember This: Escrow charges around $40 for transferring money to your bank account.

I would only recommend using Escrow for transactions over $500.

Lately, I've been very good at preventing fraud that I upped that amount to $5,000.

I will cover my methods of preventing fraud in another article. So for now let's discuss why using Escrow is safer than Paypal for both buyer and seller.

Paypal works as a payment processing like credit card companies. So all they are obligated to do is collect the payment, verify that the payment is legitimate through their automated verification software. And in case of dispute, they want the buyer to provide proof that the tangeable goods we're in fact delivered to the buyer.

The issue becomes more complicated for buying and selling websites becuase there is no Tangeable Goods to deliver. Websites and Domains are virtual.

So Paypal have not real business in getting involved with any disputes when it comes to virtual goods sale.

Basically, I've face a few scenarios that went my way and the buyer's way.

Paypal Scenario #1: Buyer Files a Chargeback

This is a very common occurance for flippers on Flippa. Sometimes a buyer will use a stolen credit card and pays for the site using it. The real owner receives the bill at the end of the month and calls the credit card company to reverse the transaction.

Of course, Paypal would like to be on the credit card company's good side so they will honor the chargeback and take the money from the Seller's account.

When this haapened to me, it was for $3,500 and it put my Paypal account to negative.

I argued the chargeback but of course, Paypal already gave the credit card company their money back so it was pointless.

I have not met sellers that have won got their money back from buyer's filing chargebacks with their credit card company.

So I definitely learned a hard and expensive lesson there. Not only that I lost the funds, I also lost the website and the domain.

I tried to get the domain back but was unsuccessful. Once it's transferred to another account, there is very little thing you can do to get it back. Godaddy only told me that I should contact an internet lawyer. :-) Yes. This is what Godaddy told me even though I transfered the domain to another Godaddy account they were still unable to reverse the transfer becuase it's not their business to get in the middle of a dispute.

So you definitely have to be careful accepting Paypal payment becuase even legitimate buyers will play dumb with their credit card company and pretend they did not authorized the transaction.


Paypal Scenario #2: Buyer Files "Item Significantly Not As Described"

Firstly, Once transaction is completed, there is no reversing it. That is enough for sellers to have better sleep at night knowing the money they earned is theirs and no one can take it away.

As for buyer protection, Escrow allows you to have inspection days to even 15 days as long as you and the buyer agreed to this.

During this inspection, you will have the oportunity to review the website thoroughly and if you are 100% satisfied, you then notify Escrow the transaction is complete.

You as a buyer have the power to ensure you get what you paid for.

Of course, you have to provide these details on the terms clearly to make sure that in case there is a dispute, you have something for Escrow support to refer to.

If the website seller claims the website is receiving an average number of Organic Traffic on a daily basis and making an average x-amount of dollars, then you should add this into the terms so you can verify it during inspection period.

Well. I hope that helps.