Mobile apps have a high potential in terms of revenue. According to statistics, the top 200 products in digital stores bring developers and publishers over $80,000 daily. At the same time, beyond this threshold, income significantly decreases but still remains quite tempting. Although the top 200 apps are only a tiny part of the total number (more than 5 million), many people strive to get into it.
Developing mobile apps from scratch is challenging. Luckily, you can buy a finished product and earn money with it. But how to buy a profitable app that will really become successful? It is difficult to say unequivocally that this or that product has good potential from the start and will definitely bring profit. There are many things to consider and pay attention to when buying one. That is what our article today is about. Keep on reading if you plan to enter the mobile app market.
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What to Consider When Buying an App?
There are many reasons why someone wants to how to sell an app idea. For example, the developers could not cope with the load, the product stopped generating income due to poor-quality marketing and monetization, or there was a conflict within the team. If you decide to buy apps from developers, these reasons shouldn’t affect your work. That is why you should pay attention to the following factors.
Brand reputation
Before you start an app business, you should research the developers’ history in detail. The quality and potential of a product should not matter if the people behind it did questionable things in the past. It is important even if their actions weren’t all directly related to the app. Study the developers’ past, ask around on thematic forums, and read user reviews on other company products (if any).
Developer accounts’ reputation
The previous point was about the devs’ reputation in general in the digital space. Now you need to check their reputation directly on the app stores. Stores rank products in many ways, and developer trust is one of them. Even if the app is transferred to your account after purchase, you can encounter difficulties if its previous owners committed some illegal activity. In addition to minor problems, it can also lead to blocking the app.
Following guidelines
Each marketplace has its own rules, guidelines, and restrictions that must be followed so that the product is not blocked. If the app didn’t pass the review and moderation, the developers are required to either fix the flaws or remove the item from the store. Until then, they won’t be able to post updates, so if the app you’re considering hasn’t been updated in a while, see it as a red flag. You will get a frozen asset if you ignore it.
Legal stand
There are specialized platforms for buying and selling mobile apps, and you can also negotiate directly with developers. Regardless of which option you choose, be sure to check who owns the product you’re interested in. There is always the possibility that the platform or person acquired the item illegally. It is not superfluous to consult with a lawyer specializing in the digital sphere and check the domains and creators’ social media accounts.
Copyright
If you compare a website vs app for business, you will notice a significant similarity. Both can be patented as a trademark (or undergo this procedure at the time of purchase). When you buy an app, all rights to the brand and trademarks are transferred to you. Make sure you get all the relevant documents so as not to get in trouble with past owners or copyright infringers in the future.
App metrics
Tracking the product’s performance when buying it and conducting market intelligence tools might not be the best idea. After all, success depends on the marketing campaign and App Store Optimization. Even excellent and high-quality apps can have low download and retention rates.
It is quite possible that you understand marketing better than the developers, and you can take the title to a whole new level. However, getting to know what the creators have been able to achieve is useful for understanding their mistakes.
How to Buy an App?
For making money from mobile apps which you buy directly from other developers, the deal should follow the laws. With the help of a specialist, draw up an agreement that transfers the rights to the app to your full disposal, regulates other related issues, and satisfies the requirements and wishes of all parties. If you decide to use the services of specialized platforms, the service provider usually deals with all legal issues. Intermediaries charge a certain percentage of the transaction, which is about 10% on average.
Once the legal issues are resolved, the app can be transferred to your accounts on the app stores, or the developer can completely assign their account and the app they manage to you. In the first case, it is important that your account complies with the terms of digital stores. In the second case, the seller should make sure there are no assets in their account that were not included in the transaction. After transferring an app or account and entering up-to-date billing information, all app profits will go to you.
Where to Buy App: Popular Platforms
If you are wondering, “How do I buy an app?” then know that you have two options. You can negotiate with developers directly if you have contacts. Alternatively, you can go to marketplaces that collect offers from different creators. Some platforms specialize in reselling high-potential products. They usually refine undervalued items and find buyers for them.
The most popular sites where you can purchase finished apps are AppBusinessBrokers and Flippa. If you’re interested in templates or products that haven’t been completed yet, check out Codester, SellMyApp, CodeGrape, and CodeCanyon. You can select the categories and filters you are interested in to find what you need faster. If you don’t know what you want yet, read our article “What is the Most Popular App Right Now” to choose the most promising title.
Most Profitable Apps at the Beginning of 2023
You might ask, “Are apps profitable for real?” The correct answer is “Some of them.” Many do have great potential, but success depends on tons of factors and a little on luck. The list of top paid apps and free titles changes regularly, but certain categories more likely to be successful have remained the same for a long time. Here are the most in-demand groups and products that have the highest revenues:
- Games: Genshin Impact, PUBG Mobile, Candy Crush Saga, and Roblox;
- Entertainment: Netflix, Spotify, TikTok, and YouTube;
- Social media: Facebook, WhatsApp, Instagram, and Snapchat;
- Dating: Bumble, Tinder, Hinge, and Badoo;
- Health: FitBit, MyFitnessPal, Strava, and Calm.
It is not easy to achieve the success of these tech giants, but everyone has a chance. For the purchased product to bring you the desired profit, you need to think about a monetization strategy. In our ASO blog, you can read more about Android app monetization strategies. You can make your product completely free with ads like Duolingo, go freemium like the Whats App business model, or make access to features completely paid like Netflix.
Final Recommendations on Buying Apps
As you might have already understood, buying apps still requires a careful approach from you, although it is a simpler task than developing them from scratch. It is crucial not to run into scammers or unreliable developers, so you should study all the information about the creators and the product itself in detail. Here are our final recommendations on what to avoid when buying an app:
- Avoid new products. A newly launched app can hide many flaws. At the start, many metrics can be impressive and high, but you shouldn’t trust them fully.
- Don’t buy the #1 title. There is a possibility that the developers manipulated the traffic and used bots. Pick #2 and #3 items as they tend to be more reliable in terms of reputation.
- Don’t rely on lists of the best new products. Such fame is extremely short-lived; it is better that the app becomes the best in what it was designed for.
- Do not trust paid traffic. Analytics still give approximate numbers, so you can’t say for sure how much of the traffic was paid and how much the creators had to invest in it.
Buying an app can become a profitable business with a good deal and a competent approach. The main thing is not to lose sight of all the points we have described in the article.
