If you’ve created an app and have already made some money from it, you might consider flipping your app. This is when you sell your app to somebody else.
If your app was successful, it probably attracted a lot of attention from people who want to use it and from companies that want to buy it from you. As the old saying goes, “Success has a thousand fathers but failure is an orphan.”
Lots of companies want to buy successful apps, especially if they compete directly with existing apps. In some cases, companies may buy an app just so they can shut it down. There’s value to being the only type of a certain niche app in the marketplace. The risk with this, of course, is that another similar app can pop up in the place of the one you have bought and shut down so you will need to do it all over again.
In other cases, they may want to add it to their family of successful apps to improve the image of their brand. Many web-based app producers are doing this exact thing right now. They are building a successful online brand by bringing in new, successful apps under the umbrella of their brand image.
In either case, it should be clear that developing apps is a great online business strategy right now because there are at least three ways to make money: Selling your app directly to users on your own, selling your app to another company so they can shut it down and reduce their competition within their niche, or selling your app to a company so they can add it to their stable of successful apps and reinforce their brand.
The Best Reason to Flip
If you choose to sell your app on your own, there is a great profit potential, especially if your app is unique and popular. But you still have to worry about managing your sales, promotions, marketing and a lot of other headaches. In many cases, the best option is to simply flip your app.
The number one reason to flip your app is … money. Successful app creators sometimes get offers in the six or even seven figures for their app.
In fact, many people develop apps not so that they can make money from selling their app on their own, but from selling it to other companies.
The most successful apps become brands, and branding lends itself to other income sources like licensing, franchising, other product lines. All of these are potential profit streams.
If you are skilled at running your own business, manage these revenue engines yourself. But if you aren’t experienced, your best option might be to take the money and run.
Don’t Wait Too Long
Apps rise and fall in popularity very quickly. There are lots of apps that were hugely popular at one time but are now rarely used — such as Fat Booth, Paper Flicker and MySpace.
Your best bet is to sell your app while it is at the height of its popularity. If you create a successful and popular app, there inevitably will be copycat apps rushed to market to cash in on your success. Some may even become more popular than your original app.
Every situation is different, but in a lot of apps the best option is to sell when you believe you getting the optimal price. Conditions on the Internet can change in an instant, so it’s better to get out while you are still on top.
Where to Flip Your App
If your app is successful, buyers will come to you. For everyone else, there are websites such as Flippa that specialize in offering apps for sale.
If your app is a smash hit or you believe has peaked in popularity, another option is to “reskin” your own app. This means rather than simply releasing an updated version, you rework your app as an entirely new product and brand. You can then either offer it for sale on the same app store you have been using, try to sell it on another app store, or try to sell it to somebody else on Flippa or another flipping site.
If creating or selling apps is not your style after all, there are other proven ways to make money online, such as promoting affiliate offers.