You have undoubtedly heard of people selling successful businesses, making millions, and instantly retiring. Apps are no different. With the market growing the way it is, investors are always looking for new apps to buy. Because the app market is so young, buyers will pay top dollar for rights. The times I have sold the rights to apps have been fortunate circumstances that netted me lucrative profits. When I have wanted to take on a new project or adventure, selling a particular app’s rights has provided me with both the capital and the freedom to pursue other options. No matter the app, there is always a buyer out there. I know some appreneurs who have retired at a very young age simply by selling the rights to their app at the perfect time.

Because of this emergence of a new market from the buying and selling of the app rights, it is important that you know the process and expectations. In the event that a buyer wants to procure the rights to your app, these will include, but are not limited to, source code, user base, future revenues, and development team. Think of someone’s purchasing the rights to your app like buying a web site domain. Basically, once the transaction is complete, the app is no longer yours. You may wonder why you would ever want to give up your creative work, but you will learn that once the app bug bites, it is hard to limit your app creation. Likely, you will start with one app and then quickly make another. The creative process will continue, and before you know it, you will have a plethora of apps. Having multiple apps is a great business model for sustained revenue, but it is also very time-consuming and stressful. The purpose of this book is to guide you in making an app successful. So, can you imagine carrying out all of the steps I’ve outlined for you for all your apps? Hopefully, your answer was yes, but once you reach 10 to 15 apps, this is simply unfeasible. Hence, selling the rights to an app is a wise business move that will free up some time and make some quick cash. Until recently, only large companies sold app rights, but thanks to the appearance of some very good web sites that act as brokers, this is now a possibility for all appreneurs. I have sold a few individual apps as well as my entire game guide company.

You should set a goal and then proceed accordingly when trying to sell rights. Decide whether you want to sell one app, an entire series, or a developer account. If you are trying to sell individual apps, your best option is the web site Sellmyapplication (www.sellmyapplication.com ). I have had some great results with Sellmyapplication, which charges a very reasonable fee to post an ad for your app on its site. One of the key benefits of the site is the size of its community. I have listed quite a few apps on the site, and I usually received inquiries within a day. Furthermore, the seller also gets to interact directly with the buyer, eliminating the need for a go-between and saving you money. This direct buy system works well because no one knows his or her app better than the person selling it. I have not found a better platform for selling an app. Sellmyapplication also has a great market for buying preexisting apps and code snippets. I have purchased, for an extremely reasonable price, some awesome code snippets that I was able to use in my own apps.

Selling the Rights at the Right Time

If you do decide to sell your app or app company, you need to make sure it is a decision you will not regret. Usually, appreneurs who sell their rights do so when they want to move on to a new series or project and do not have time to maintain their current apps as well. Finding buyers on your own is almost impossible and is more of a headache than it is worth. When selling my first company, I initially tried to take on the task of finding buyers singlehandedly. It was a daunting and frustrating process that could have been made easier had I known about the team at AppBusinessBrokers ( www.appbusinessbrokers.com ). I have found this group to be knowledgeable and professional. What they do is gather all the information a potential buyer of your app/app company will ask and serve as a broker. They have a wide client base and can help you sell your apps to investors in a timely manner. In addition to their large client base and extensive knowledge of the market, they are also accessible; they even take the time to talk to you on the phone before beginning the process. This is the kind of customer service that makes selling apps less of a hassle.

Buying Preestablished Apps

As an appreneur, you may also be approached to buy an app. Buying apps is generally a business risk, as the majority of apps for sale are those that are trending down despite the efforts of the seller. For the appreneur with a knack for generating sales, what would otherwise be a business risk may be a business opportunity. Before buying, or even considering buying, an app, ask yourself a few simple questions:

• How well established is this app?

If the app has been around for a while, has been ranked fairly consistently, and shows up high in search results, then buying the app may be a great investment. If the app’s ranking is way down from its initial release (remember to use AppAnnie to track this data), then you are taking a huge risk. Buying the latter type of app is equivalent to salvaging a leaky boat while it is in the water. Sure, you could try to plug the holes and do repairs, but it may be sinking so fast that any patch efforts are in vain. The most important factor to consider when buying an app is how well its keywords rank. If an app has established keywords and shows up high in the rankings, then buying the app could be a great move.

• How much is the app selling for?

Price will determine if buying the app is more logical than developing, or having someone develop, something similar. Most studios can give very accurate quotes on what it would cost to build an app like one that is already in the App Store. Remember, the only thing you cannot buy when having an app developed is rankings. If the app is ranked well, then do not bother trying to compete and develop your own version.

• Do the users like the app?

A cause for concern is if the application is flooded with bad reviews. In that case, you need to be very wary. Recently, some appreneurs developed fake fingerprint scanners, ghost finders, and lie detectors. These apps are just scams, and some poor person downloaded the app, thinking it did these things. Do not buy these—ever! Apple is cracking down on fraudulent apps and removing them from the App Store; likewise, the company is blocking new ones. You will be disappointed when you spend thousands for this app, only to have it taken down by Apple or not approved at all. If a seller is willing to scam users, then that person will have no quams about scamming you.

Selling Apps That Have Never Been Listed in the App Store

In addition to buying and selling preexisting apps, another app opportunity may present itself: flipping apps. Flipping is a term that originated in the dot-com era and denotes the buying or building of a web site in order to immediately sell it. Although flipping has not yet gained popularity in the app world, it is an inevitable eventuality. Already there are a few appreneurs who make apps similar to ones that are popular in the App Store and who sell them without ever uploading them to the store. This is a huge gamble; you will not know how well the app has done. You won’t be able to know if Apple will accept the app or if it will sell as you anticipate. Flipped apps are generally less expensive than preestablished apps because of the risk involved. I personally have never flipped an app. It is too much of a risk for me. I have bought and sold plenty of apps, but only when I know what to expect. If flipping catches on, then I will adjust my business model, but until then I will stay away from this practice.

Now, I will reveal with hesitancy a well-kept secret of mine. Because I decided to hold back nothing in this book, I will tell you how I maximize profit by selling an app’s rights at the perfect time. If you are able to successfully follow the trends of your apps and anticipate what will happen well before it does, you can make a considerable profit by selling the rights before an app begins to trend down. One consideration of buyers is how the app is trending. They will usually only be interested in the app if it is trending up or flat. If your app is trending down, and you sell it, you will receive fewer offers and less profit. The previous chapters painstakingly described the importance of trend data. To be a successful appreneur, it is imperative that you learn how to read this information. Once you become adept at data analysis, you can make serious money in markets people didn’t even know existed. When I foresee that an app is about to trend down, I put it up for sale at a high price. Ideally, you will have a few very interested buyers soon after, because the app is doing well. By using this strategy, you are maximizing two things: time and money. If you do not have to worry about remarketing, repromoting, and readvertising an app, then you will have more time to devote in other places. I have found that the best time to sell the rights to an app is in late February, when holiday season sales begin to slow. Typically, your app will trend up during the holiday season; it will likely come down in the spring. If you are able to sell your apps before they trend down, you will make money, and fast. This template, of course, will not work with every app, but it is a good starting point.

This chapter is probably one of the most complicated in the book. There are many risks associated with buying and selling apps, risks not advisable for the amateur appreneur. I would highly recommend getting some experience under your belt before attempting buying or selling. The app buying and selling world is comparable to the stock market. Do it right, and you can make a fortune. Do it wrong, and you will lose your fortune—fast.