Online Business Brokers & Marketplaces Compared

When you’re ready to buy or sell an online business, one of the first big decisions you’ll face is whether to use a broker or a marketplace. They both connect buyers and sellers, but they offer different levels of service and are often suited for different types of deals.

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What is an Online Business Broker?

Think of an online business broker like a real estate agent for digital assets. They provide a full-service experience, guiding both the buyer and seller through the entire process, from valuation and marketing to due diligence and closing. They typically charge a commission on the sale.

Pros of using a broker:

• Expert Guidance: Brokers have experience in valuing, packaging, and marketing businesses. They can help you set a realistic price and present your business in the best light.
• Vetting and Filtering: Reputable brokers often vet both buyers and sellers, which means less time wasted on unqualified leads or “tire-kickers.”
• Confidentiality: Brokers can help maintain confidentiality during the sale process, which is important for many business owners.
• Negotiation Support: They handle negotiations, which can be complex and emotional, ensuring you get the best possible deal.
• Due Diligence Assistance: They often assist with or facilitate the due diligence process, ensuring all necessary information is exchanged and verified.
• Access to Qualified Buyers/Sellers: Brokers often have a network of serious buyers or businesses not publicly listed.

Cons of using a broker:

• Commission Fees: Brokers charge a success fee, typically a percentage of the sale price (e.g., 10-15% or tiered structures). This can be a significant cost.
• Less Control: You hand over a lot of the process to the broker.
• Minimum Thresholds: Many top brokers focus on businesses above a certain revenue or profit threshold (e.g., $100,000+ in revenue/profit).

What is an Online Business Marketplace?

Online business marketplaces are platforms where buyers and sellers can list businesses for sale, often with more of a “do-it-yourself” approach, similar to eBay. Some marketplaces offer various levels of support, from simple listings to some vetting.

Pros of using a marketplace: How to Get Started with Buying an Online Business

• Lower Fees: Generally, marketplaces have lower listing or commission fees compared to full-service brokers.
• More Control: You have more direct control over your listing, communications, and negotiations.
• Wider Range of Businesses: Marketplaces often have a broader selection of businesses, including smaller assets or pre-revenue projects.
• Direct Interaction: You can directly communicate with potential buyers or sellers.

Cons of using a marketplace:

• More Work for You: You’ll be responsible for marketing your business, vetting buyers, and managing the due diligence process.
• “Tire Kickers”: You might encounter more unqualified buyers or curious individuals who aren’t serious about purchasing.
• Less Vetting: While some marketplaces do some vetting, it’s often not as rigorous as with a dedicated broker, meaning you need to be extra diligent.
• Information Overload: You might have to sift through a lot of listings to find a gem.

Popular Online Business Brokers and Marketplaces

• Empire Flippers: Often considered a market leader for vetted online businesses, especially for e-commerce, content sites, Amazon FBA, and SaaS businesses. They’re known for their thorough vetting process and broker support, typically for businesses with profits of $100,000 or more. They use a stacked commission structure.
• Quiet Light Brokerage: Highly regarded, especially for high-revenue online businesses and e-commerce listings. They offer dedicated broker support and are known for fair valuations. Their commission is typically around 10%, with a sliding scale for larger deals.
• Flippa: Often called the “eBay of brokerages,” it’s a true marketplace with a vast number of listings, including smaller online assets and websites. It offers a more self-managed approach with hybrid fee structures and various upsells. You’ll need to put in more time to manage your listing and vet buyers here.
• FE International: A long-standing and respected broker, particularly strong in SaaS, content, and e-commerce businesses. They specialize in mid-market businesses (often $1M+). They have a high success rate (over 94%) and offer comprehensive services, including due diligence.
• Acquire.com: Good for small-to-mid SaaS startups.
• Website Closers: Specializes in digital businesses across a wide range of listing prices, from small to very large (up to $500 million). They offer comprehensive services including valuations and due diligence.
• BizBuySell: One of the largest marketplaces, often good for niche or even physical businesses, in addition to online ones.

Choosing the Right One:

Your choice will depend on your business’s size, revenue, niche, and how much hands-on involvement you want. If you have a larger, higher-revenue business and prefer a guided process, a full-service broker like Empire Flippers or Quiet Light might be a better fit. If you’re selling a smaller asset or prefer a more DIY approach with lower fees, marketplaces like Flippa could be suitable.

Read more about The Ultimate Guide to Buying and Selling Online Businesses Review:
The Ultimate Guide to Buying and Selling Online Businesses Review & First Look
What to Expect from Buying an Online Business
How to Get Started with Buying an Online Business
How to Value an Online Business
Due Diligence Checklist for Buying an Online Business
The Benefits of Selling Your Online Business What to Expect from Buying an Online Business