A well-crafted mobile app can be a great source of ongoing revenue, but many developers decide to go a different route and sell off the entire app to the highest bidder. There are plenty of interested buyers around and niche websites are bustling with this type of trade, but smart developers are careful not to give up their valuable assets too easily. Here are some of the factors that can increase the value of your mobile app and help you cash in on your work:
Good user stats
Any prospective buyer will certainly take a hard, long look at the numbers. Apps with a large following will certainly fetch a much higher price in the open market. However, total number of users is not the only relevant parameter that will be placed under the microscope. If your app has become popular in recent months and attracts a large number of new users, it will have an advantage over a widely used app that has been on decline for a while. In short, the numbers must show promise of growth in the near future if your app is to generate any traction in the market.
Contemporary investors are more than aware that popularity of your app means little without a proper monetization mechanism in place. There have been far too many “next big things” that failed to bring back expected riches and investors now want to see a steady cash flow before they decide to risk their funds. This doesn’t mean your application needs to be making millions, it just needs to have a logical commercial component built into the system, like space for commercial ads or possibility of in-app purchases. This is one aspect that developers often fail to consider when they are designing the apps and it can cost them dearly when the time comes to sell.
Loyal users are the best possible advocates you can dream of. No matter how hard you try to describe your own product in the best possible light, a single spontaneous review left by a genuine user will always be far more believable. Good apps regularly draw glowing reviews from major industry blogs, so you should make sure your app is well represented there before you start thinking about flipping it for cash. User-created videos on YouTube featuring at least a few screenshots from your app could boost the price you can get for the app even further.
Strong online presence
Internet presence is essential way of proving you are serious about your business. Everyone knows that search engines and social networks are great ways to promote your app to the users, but these channels are just as effective when you need to persuade investors about the long term potentials of your app. Visibility of the app can have a huge influence on its future marketability and you definitely want to gain a prominent position on the App Store and Google Play, as well as in the Google Search results on selected key phrases. At the very least, online visibility will save your potential business partners the trouble of having to search for facts about your app.
Targeting a market gap
It sounds really simple but it is worth repeating – unique apps that serve a relevant purpose are more valuable than generic applications with no clear target group. In the copycat world of mobile programming, few developers are able to come up with truly original ideas and execute them well enough to draw a dedicated user base. It may be difficult to come up with an application that does something no other app can, but this is a formula that practically guarantees a bidding war among the possible investors. In other words, it pays off to think out of the box.
Selling at the right time
In the mobile app market, timing is everything. Selling the ownership rights to your app before its value peaks would be a big mistake. While the temptation to sell as soon as possible and focus on the next project might be understandable, a little patience can be worth a lot of money. The smart thing to do is to boost number of users and other key parameters to a respectable level first and only hit the market when you are ready for the big bucks.
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