Buying a profitable mobile app is becoming increasingly popular with app entrepreneurs. With Flippa, one of the most popular app marketplaces, you can buy, sell and browse thousands of iOS and Android app businesses for sale. But how do you ensure that you buy a profitable app? In this article, seasoned app investor Steve McGarry shares his tips on how to buy a profitable app.

How to Buy a Profitable App

Buying a profitable app requires a thorough understanding of the app market, and you can buy apps on marketplaces either via brokers or directly from the developer. There are teams that specialize in buying undervalued apps, so it is important to do your research and be sure to ask questions.

For a mobile app to be profitable, it should cater to the broader mobile app market. Popular apps tend to be gaming apps, dating apps, fitness apps, entertainment apps, and other apps that offer users a unique experience. Many apps find it to be more profitable to offer a free download and monetize with ad networks. However, if you have a premium app you could charge a fee for users to download the app.

If you’re currently selling products on your website and mobile site, you can generate more revenue by successfully building a mobile app. Building a profitable app requires a lot of work and strategic planning. Research the market, identify the features and functions that will set your app apart, and make sure you have a reliable development team.

Buying a mobile app is also an option. You can look for apps on Flippa or other app marketplaces. Look for apps that have a customer base, generate revenue, and have potential for growth. Investing in an existing app that has been successfully monetized can be profitable. But you need to consider all aspects like daily active users, daily income, paid promotions done by previous owner, current active users, and more.

For example, the Food and Grocery Delivery Hyper-Local App for sale on Flippa is one of the most profitable mobile apps on the market. It has a customer base of over 200,000 users, and it has been generating consistent revenue since its launch.

Conclusion

Buying a profitable app can be a great way to generate income and build an app business. It is important to do your research and understand the app market before you invest in an app. If you are looking to buy a profitable app, Flippa is a great resource, and there are teams that specialize in buying undervalued apps.

For more answers to your questions about business brokers and about selling a business in Atlanta, visit Atlantabusinesses.com.

What is the potential profit from owning an app?

The highest-ranking apps on the App Store generate an average of $82,500 daily, while those in the top 800 make about $3,500 per day.

What steps can be taken to ensure an app is profitable?


9
Research the Competition. …
10
Market the App.

1. Ensure your app stands out from the competition.
2. Keep the design and functionality straightforward.
3. Make navigation and usage as easy as possible.
4. Don’t cut corners when developing your app.
5. Foster an emotional bond between your app and users.
6. Identify and address common issues.
7. Select a memorable, appropriate name.
8. Don’t rely solely on professional help.
9. Investigate what other apps are doing.
10. Promote your app to its target audience.

What is the process for purchasing an application?

You can acquire apps from various marketplaces either through brokers or from the original developers themselves. There are also specialists that specialize in buying apps, enhancing them, and reselling them for a profit. Additionally, there are funds that conduct similar transactions but on a much larger scale. The most popular marketplaces for these types of deals are Flippa and AppBusinessBrokers.

What is the sale price of a successful app?

In short, the value of an app is usually between 12 and 36 times its monthly income, after expenses are taken out. To find out the income, the gross revenue must be reduced by all costs associated with generating that amount.