Second Look Audit
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Methodology

Every listing gets the same 0–10 score. Five factors are worth 0–2 points each. The page for a review shows the points and the reason. Missing data has its own score, so a blank field is not treated as a perfect mark or as a failure unless the rubric says so.

Verdicts: 7.5–10 is Worth a look, 5.0–7.4 is Verify first, and below 5.0 is Avoid. A verdict is a reading of the deal math. It is not an accusation against a seller.

A note on the numbers below. The rubric works in whole raw points, 20 per factor and 100 in total, because the steps between bands are easier to read that way. The site shows every raw figure divided by 10, so a raw 14 is shown as 1.4 out of 2, and a raw total of 82 is shown as 8.2 out of 10.

1. Price multiple

Annual profit is the annual figure when we have one. When annual profit is absent, annual profit is monthly profit times 12. The multiple is price divided by annual profit. A missing price, a missing profit, or a non-positive price or profit scores 8.

  • 2.0–3.0×, including both ends: 20
  • 1.5× up to but not including 2.0×, or above 3.0× through 3.5×: 14
  • 1.0× up to but not including 1.5×, or above 3.5× through 4.5×: 8
  • Below 1.0× or above 4.5×: 3
  • Missing: 8

2. Track record

Months are whole months, rounded down. A short history is scored here and is not also punished as a red flag.

  • 36 months or more: 20
  • 24–35: 16
  • 18–23: 12
  • 12–17: 8
  • 6–11: 4
  • Under 6, or missing: 0

3. Earnings stability

When a monthly series exists, two checks apply. No single month may be above 40% of the series total. A month at exactly 40% still passes. The latest 3-month average must be at least 70% of the prior 3-month average. The series is ordered oldest to newest before those windows are taken.

  • Both checks pass: 20
  • Only one check fails: 12
  • Both fail, including a spike together with a decline: 4
  • Fewer than six months fails the trend check only. A short series with no spike scores 12. A short series that also spikes scores 4.
  • Series missing, empty, or with a total that is not positive: 8

4. Concentration

For synced Empire Flippers listings, the share is the largest assigned channel in the latest month of public traffic, using the reported user percentage. Unassigned traffic is ignored. A single supplier or SKU flag overrides the share.

  • Top channel under 50%: 20, treated as diversified
  • One channel from 50% through 80%, including both ends: 12. The rubric calls out about 50–70%. The next cut is above 80%, so 70–80% stays in this band.
  • One source above 80%, or a single supplier or SKU flag: 4
  • Unknown: 8

5. Red flags

Start at 20 when there is enough information to judge. Each distinct explicit flag subtracts 6 raw points (0.6 as shown), and the floor is 0. Repeated wording counts once. Not enough information scores 10, even if a flag string was passed in. A short track record does not subtract points in this factor.

On Empire Flippers syncs, the only flags we record are structured ones: a private blog network marker, and a site-penalty marker when the public payload says a penalty exists. We do not store the penalty text. An Amazon SKU count of exactly 1 sets the single-SKU flag on the concentration factor. It is not also a red flag.

The red flag guide

Every red flag we check, and why it matters

These are the patterns in the public rubric. They are a reading of the deal math, not an accusation against a seller.

  1. 01

    Profit from one spike month

    No single month should be above 40% of the earnings series. A month at exactly 40% still passes. One larger month means the average is a memory of a spike, not a run rate. That fails the stability check.

  2. 02

    Declining earnings

    The latest three-month average has to be at least 70% of the prior three. If it is not, the multiple is priced on profit the business is already leaving behind. A series shorter than six months fails this check because the trend cannot be confirmed.

  3. 03

    Dependence on one platform

    One traffic source above 80%, or a single supplier or SKU, scores at the bottom of the concentration factor. One account suspension or one product decision can take the earnings with it. A top channel from 50% through 80% is a milder mark. Unknown concentration sits in the middle.

  4. 04

    Expiring supplier or product permission

    If the right to sell the core product, or the supplier relationship, is running out, that is an explicit flag. Each distinct flag subtracts 0.6 points from a starting 2.0, down to zero. We record the flag. We do not copy the marketplace’s wording of it.

  5. 05

    Short track record

    Under six months of earning history, or a missing history, scores zero on track record. A longer record scores more, full marks at 36 months. A short history is not also subtracted inside the red-flag factor. That factor only moves for explicit flags, or stays at the halfway mark when there is not enough information to judge them.

  6. 06

    A multiple that is too cheap or too rich

    Price divided by annual profit. The preferred band is 2.0–3.0×. Below 1.0× or above 4.5× scores near the bottom. Missing or non-positive price or profit gets the missing-data mark, a below-middle score, rather than a perfect score.

What we do not score from

Empire Flippers numbers come from the public listings endpoint only. We do not copy listing descriptions, images, or seller narratives. Flippa, Motion Invest, and Microns rows are manual. Example rows are invented and labeled.

Second Look Audit

Independent scores for small online businesses already for sale. We read the fine print so you can decide with a clear head.

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Not affiliated with Empire Flippers, Flippa, Motion Invest, Microns, Amazon, or the companies and sources we cite.