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Idan Waller35 min readIf you are a developer and find yourself thinking, <<how can I sell my mobile app?>> then you're not alone. Many developers face this question when seeking to leverage the potential of their apps.
Selling and marketing your app can be a difficult process if your app is not a top-charting app. The ideal situation is a thriving app with solid revenue with an ARPDAU of at least $0.05 and D1 user retention of at least 50% and a growing user base.
Not every app has this luxury, but your app can still be an attractive buy for investors.
Understanding how to sell a mobile app successfully involves more than just developing a great product; it's about strategizing and presenting your app in a way that highlights its value and potential to prospective buyers.
This journey begins with a comprehensive approach to gathering data and crafting a compelling pitch that resonates with companies and investors alike.
Let's dive into how you can position your mobile app as an attractive investment.
The first step is gathering data about your app and crafting a pitch that will make the app look attractive to companies and investors.
Before pitching your app, make sure you have data ready to show. Here is some information to keep track of:
Getting funding will be easier if you can get someone interested in your app in a pinch. The goal is to hook a listener on the app in 20-30 seconds. Powerful people say less. If you have the self-worth to believe in your app, investors will, too.
Mastering how to sell apps goes beyond having a groundbreaking idea; it's about communicating your app's value in a concise and impactful manner.
The elevator pitch is your first opportunity to capture the interest of potential buyers or investors.
By honing this brief presentation, you highlight not only the uniqueness of your app but also your commitment to its success.
Investors like simple pitches that tell a story, and the pitch should take no longer than 5 minutes. An experienced venture capitalist once stood before a group of app developers at a hackathon and gave them a simple formula for crafting a pitch deck in 3 pages. Here is that formula.
Page 1 - The World Before: Describe the world before the app and the problem. For example, if you have an Android app that renews an eyeglass prescription, paint a tedious day renewing a prescription: booking a day off work, driving to the eye doctor, and spending hours taking an eye test. They won’t have time for afternoon karaoke with their children.
Page 2 - The World After: Describe how the world looks after your app fixes the problem. Using the previous example. Now, people can renew eyeglass prescriptions online in half an hour without a trip to the doctor. They’ll save money on gas and have time for their children.
Page 3 - The Money Pipe: Describe how your app will make money for you and the investors. Keep this brief. This section is where you can describe everyone on your team and their roles.
Whether you are pitching to someone at a party or a group of investors, keep the pitch short. Powerful people use fewer words. If you have the self-worth to believe in your app, investors will, too.
What would you say are the qualities of a good app? Can we describe it as a piece of technology that is easy to use, helps you solve a specific problem, and is reliable in terms of performance? That sounds right. Still, the so-called “consumer-centric” qualities that we’re talking about here are not the only ones that investors are looking for.
As it turns out, 99.5% of consumer apps and 87% of business apps fail. Investors are aware of this risk and are looking for ways to mitigate it. You need to put them at ease, but how? This is where “business-centric” qualities like competitive features and market positioning, user loyalty and engagement, and potential for monetization and growth enter the scene.
Sure, an app must have a user-friendly interface and other convenient features such as single sign-in, offline functionality, and cross-platform compatibility. And yes, it’s always nice to have push notifications, gamification features, and quick sharing buttons for social media. But guess what? These features don’t make your app special. Too many good apps have them.
Investors are interested in truly unique features that can’t be found anywhere else. Think custom algorithms, AI integrations, and innovative tech frameworks. Adding AR or blockchain to an app is OK, but finding a creative way to use them is even better. Unique features are crucial in terms of market positioning, but they also show forward-thinking development and utility.
Some apps with unique features that we like are Blinkist, Photomath, and Calm. The first two use AI, but in a specific way that hasn’t been used before–Blinkist for speed-reading and Photomath for doing math from photos. Calm is not just another meditation app; it’s a safe space where you can fall asleep with Matthew McConaughey’s raspy drawl in your ear.
A quick lesson in app monetization: downloads mean nothing if you can’t get your users to click on an ad or engage with your app in a way that makes money. Sad, but true. The metrics that investors actually want to see are Daily Active Users (DAU), Monthly Active Users (MAU), user retention, and other figures that show the app’s stickiness and value for users.
If many users interact with your app every day, it is useful to them. It solves their problem and brings them value. Over time, they will turn into loyal users and recommend your app to their friends and online. That’s growth potential that appeals to investors. And when you eventually ask them to subscribe for more value, they will gladly click the button.
I talk about MyFitnessPal a lot, and I don’t even practice food tracking. But I have a good reason: it keeps me in professional awe. Fitness & health apps are a market worth $2.10 billion in 2024. Collectively, they have over 850 million downloads and 350 million users. MyFitnessPal alone has generated $12.25 million, over two times more than its runner-up, Strava.
In other words, MyFitnessPal is an unchallenged market leader in its category. Let me tell you, this is no small deed. According to users and analysts, this app is so loved and popular because it provides an easy and stress-free solution to a difficult and stressful problem: dieting. This is smart market positioning that appeals to basic human psychology and needs.
Another app I know suspiciously a lot about, even though I am an adult man, is Flo. When it first rolled out, it was free and had a few basic features built around its main functionality, which is period tracking. Over time, it became an all-around app for tracking women's reproductive health from ovulation to pregnancy with insights, tips, and secret community chats.
The point of Flo’s success story is that an app must have a space to grow. Just because you don’t have the means and budget to develop your app’s full potential, that doesn’t mean you shouldn’t think about its future features, untapped markets, and earning opportunities.
Want to get an immediate, honest valuation on your app? Just choos iOS or Android and type its name below!
Once you have a pitch prepared, you’re ready to look for places to sell your app.
Navigating how to sell a mobile app through marketplaces is an essential strategy for developers looking to find the right buyer. These platforms offer a unique opportunity to showcase your app to a wide audience of potential investors and companies interested in acquiring new technologies. By understanding the intricacies of listing your app, you're taking a significant step toward making a profitable sale.
Similar to eBay and other online stores, app marketplaces are platforms where you can list your app, and interested buyers can contact you to request more information and submit offers. These platforms are a great option for smaller apps that have less than $5k per month in revenue or less than 5k downloads. The two biggest app marketplaces are Flippa ($375 million in sales) and Empire Flippers ($280 million in sales).
Selling on these websites is similar to selling on an online store.
Flippa - This popular website flipping platform is the most popular option for apps as well. The commission is cheap, and submitting a listing involves fewer steps. Buyers are left to do their due diligence and sellers can be more prone to copycats due to the platform’s hands-off approach.
Empire Flippers - This platform offers more protection in exchange for higher commission rates for smaller apps. The vetting requirements are more stringent, but once your app is accepted, the platform claims that 84% of listings have successfully sold.
Flippa vs. Empire Flippers Comparison
| Features | Flippa | Empire Flippers |
| Confidential Listings | For $100, a listing can be upgraded to hide information about the app until buyers sign an NDA. | Requires proof of funds to view specific information about a listing, in order to prevent copycats. |
| Listing requirements | No requirements. $29 to list. | At least $2,000 in monthly earnings. Google Analytics traffic data for at least 3 months. |
| Due Diligence | For $1.5k, buyers can buy a due diligence service to verify traffic and revenue, check for bot traffic, and identify asset transfer risk. | A dedicaters witd team handles the transfer. They verify domain ownership, Google Analytics traffic, earnings, expenses, and seller information. Seller businesses worth over $100k can provide seller interviews to create legitimacy. |
| Commission | 10% commission for sales under $50k. 7.5% commission for sales between $50,001-$100,000. 5% commission for sales above $100k. | 15% commission for sales under $700k. 8% commission for sales between $700,001-$4,999,999. 2.5% commission for sales above $5 million. |
While exploring how to sell an app, consider that app marketplaces offer a unique platform where your app can be listed for potential buyers.
App aggregators such as Bluethrone are a new option for sellers. Instead of acting as an intermediary between sellers and buyers, Bluethrone directly buys apps.
Bluethrone requires all prospective apps to pass the 5K rule. Potential apps must be making at least $5k in monthly revenue, and have at least 5,000 downloads.
To sell your app on Bluethrone:
Selling directly to companies
Big companies have many submissions every day. Many companies such as Apple and Google have policies that discourage unsolicited ideas. Everyone wants to be acquired by a larger company, making it much harder to be seen. It will be easier to get companies to listen if you know someone at the company.
Being in the community is an excellent way of getting to know people in the industry. Hackathons and business development events such as TechCrunch, HackZurich, and hackNY are great ways to connect.
Here are some other events for app promotion events:
App Promotion Summit. Attendees here can expect to network and trade secrets in app growth.
MAU Vegas. Focused on marketing and inclusivity, this event is a great place to find creative and modern ways to sell your app.
MWC Barcelona. A networking event focused on the future of the mobile industry. Themes include Augmented Reality, Fintech, and 5G.
In addition to selling your app to large companies, understanding how to effectively sell your app online is crucial for maximizing its reach and profitability. Explore effective strategies for online app sales in our detailed article: How to Sell My App Online.
Earlier, we talked about your app’s growth potential. Let’s expand on that and answer a rarely addressed question: Is your mobile app a scalable venture opportunity?
App investors usually want to know specifics that may confuse you during your pitch. One of them is your app’s scalability potential. So, let’s talk about that. What do they want to hear? More importantly, what makes an app scalable?
A scalable app has a measurable potential for growing its user base, expanding into new markets, and adapting to increased, evolving, or changing demand. But there’s a catch: scalability must not compromise the app’s performance, hurt the user experience, or alienate the existing use base in any way.
To ensure scalability, you must build your app with future growth in mind. But where to begin? Think in terms of infrastructure, demand, and scalable features:
You don’t scale an app that doesn’t bring any money, even if you have resources. That’s simply a bad investment, which means a scalable app must also demonstrate the ability to generate consistent and predictable revenue.
First, you need a scalable monetization model that will capitalize on your app’s growing user base. For example, in-app purchases are more scalable than one-time purchases because they provide a continuous revenue stream. Subscriptions could also work well, but you need to constantly upgrade your offer with new features and value to avoid churn.
To prove your app will stay profitable over time, prepare projections using monetization metrics such as Average Revenue Per User (ARPU), Lifetime Value (LTV), and conversion rates in relation to metrics that indicate app growth, such as new users and retention rate.
Challenges that hinder app growth include market saturation, low user engagement/high churn rate, and outdated technology. Don’t avoid discussing these subjects because potential buyers will ask you about them. It’s better to have your answers prepared.
Here are some points to consider:
Big businesses can afford to invest in apps that may not fulfill an immediate monetary need. Some smaller businesses, however, can only afford to invest in things that will immediately grow their business. Bluethrone is a simple and straightforward option. As the first online app aggregator, Bluethrone purchases apps directly. If your app has at least 5k in monthly revenue and over 5k downloads, consider selling your app via Bluethrone.
If you are having trouble selling your app, consider a different tactic.
Consider repurposing your app for an adjacent company’s niche. Small businesses are often looking for apps built specifically for them.
For example, if you have built an app like Yelp, it is unlikely to beat Yelp. However, perhaps there is a local restaurant with a few locations in their chain looking to expand.
A mobile application could help their brand grow. With a few modifications, it could be 10x or even 100x their revenues. A button to share dishes on Twitter, Facebook, and Instagram might double or triple their social media presence. The app could notify customers about new deals and promotions.
A digital stamp card feature could offer repeat customers a free dish for every 10th purchase. Here customers can write a Yelp review and get a discount on purchases. The app becomes a home where people who love the business can show their loyalty to the brand in exchange for perks and benefits.
Your app could help them grow their business and create a loyal customer base that could multiply their revenue.
If you are attached to your application, there is the option of partnering with Bluethrone instead. Bluethrone has added a route for developers to form a partnership and streamline the process of selling their apps. You will gain access to Bluethrone’s unlimited resources and team of experts while maintaining ownership of your app.
For more information, visit Bluethrone’s website.
Learning how to sell a mobile app effectively can be greatly aided by examining case studies of successful sales. These stories provide valuable insights into the strategies and tactics used by developers to attract and secure deals with major companies. As we explore these examples, pay attention to the key factors that contributed to their success.
Draw Something: This popular mobile game was developed by OMGPop, a small startup based in New York City. In 2012, Draw Something became a sensation, with millions of daily users and strong revenue from in-app purchases. According to reports, OMGPop's CEO Dan Porter prepared a detailed pitch deck that demonstrated the game's potential for growth and monetization. Porter also made sure to highlight the app's strong user engagement and retention metrics, which were key selling points for potential buyers. In March 2012, the game was acquired by Zynga for $180 million, a huge payday for the small team behind the app.
What can we learn from this example?
Waze: This popular navigation app was developed by a small team in Israel and launched in 2009. Waze quickly gained a loyal user base thanks to its unique features, such as real-time traffic updates and the ability to report incidents on the road. In 2013, Google acquired Waze for $1.1 billion, recognizing the app's potential to disrupt the traditional mapping and navigation industry. According to reports, the Waze team prepared a detailed pitch deck that demonstrated the app's growth potential and unique value proposition. They also emphasized the app's strong user engagement and the potential for monetization through advertising.
What can we learn from this example?
Supercell: This Finnish mobile game developer has had several successful app sales, including the popular games Clash of Clans and Clash Royale. In 2016, Supercell was acquired by Tencent, a Chinese tech giant, for $8.6 billion, making it one of the most successful app sales in history. Supercell's success can be attributed to its focus on creating high-quality games with strong replay value and monetization potential. The company also invested heavily in marketing and user acquisition to build a large and loyal user base.
What can we learn from this example?
WhatsApp: This messaging app was developed by a small team in 2009 and quickly gained a large and loyal user base thanks to its simple interface and focus on privacy. In 2014, Facebook acquired WhatsApp for $19 billion, recognizing the app's potential to disrupt the traditional messaging industry. According to reports, the WhatsApp team prepared a detailed pitch deck that demonstrated the app's strong user growth, engagement, and retention. They also emphasized the potential for monetization through advertising and business messaging.
What can we learn from this example?
Overall, these examples demonstrate that it is possible to sell a successful app to a larger company, even if you are a small team or an independent developer. With the right pitch, value proposition, and marketing efforts, you can attract the attention of potential buyers and negotiate a successful sale. It's important to be prepared and have a clear idea of what you want to achieve from the sale, as well as to be flexible and adaptable.
Before attempting to sell your app to a company, it is important to thoroughly research the market for your app. This includes understanding the competitive landscape, identifying potential customers or target markets, and determining the price point and revenue potential for your app.
Some key factors to consider when conducting market research include:
Competitive landscape: Who are the main competitors in your space, and what features and functionality do they offer? How does your app compare in terms of value proposition, pricing, and user experience?
Target market: Who is the target audience for your app, and how does this align with the company you are hoping to sell to? It is important to have a clear understanding of the needs and preferences of your target market to tailor your pitch and customize your app as needed.
Price point and revenue potential: What is the price point for your app, and how does this compare to similar apps in the market? How much revenue do you expect to generate from your app, and what are the key drivers of this revenue (e.g., in-app purchases, advertising, subscriptions)?
Depending on the needs of the company, you may need to customize your app to better fit their needs. This could involve adding specific features or functionality or tailoring the design and branding to fit the company's style.
Some potential areas for customization could include:
Features and functionality: Is the company looking for specific features or functionality that your app does not currently offer? Consider adding these features to better meet the needs of the company.
Design and branding: Does the company have specific design guidelines or branding elements that you need to incorporate into your app? Make sure to align the design and branding of your app with the company's style to create a cohesive brand experience.
Partnering with other companies or organizations can be a great way to promote and distribute your app. These partnerships could include co-marketing efforts, cross-promotion, or even joint ventures to jointly develop and sell the app.
Some potential benefits of partnerships include:
Increased reach and visibility: Partnering with a well-known company can help to increase the visibility and reach of your app, potentially leading to more downloads and revenue.
Joint development and innovation: Partnering with another company can provide opportunities for joint development and innovation, potentially resulting in a more differentiated and valuable app.
Increased credibility: Partnering with a reputable company can help to increase the credibility of your app, potentially making it more attractive to potential buyers.
Even with a great pitch and a well-designed app, you still need to promote your app to potential buyers. This could include creating marketing materials such as website landing pages, social media posts, email campaigns, or using paid advertising to reach a wider audience.
Some strategies for marketing and promoting your app include:
Content marketing: Create blog posts, articles, infographics, or other types of content that showcase the value and benefits of your app.
There are several legal considerations to keep in mind when selling an app to a company, including intellectual property issues, contracts and agreements, and data privacy concerns. It may be helpful to seek legal advice or engage a lawyer to help navigate these issues.
Understanding the legal implications is a key part of how to sell an app, especially when negotiating with companies.
Some key legal considerations to keep in mind include:
Intellectual property: If you are selling an app that you developed, it is important to ensure that you own all the necessary intellectual property rights (e.g., copyrights, trademarks, patents) and that you have the right to transfer these rights to the company. If you are using any third-party content or code in your app, make sure to properly license this content and ensure that you have the right to use it.
Contracts and agreements: It is important to have a clear and legally enforceable agreement in place when selling your app to a company. This could include a purchase agreement, a license agreement, or some other type of contract that outlines the terms of the sale, including the price, any customization or development work, and any ongoing support or maintenance obligations.
Data privacy: If your app collects or processes personal data (e.g., user names, emails, location data), you need to ensure that you comply with relevant data privacy laws and regulations (e.g., GDPR, CCPA). This includes having a clear and comprehensive privacy policy in place and obtaining any necessary consent from users before collecting or using their data.
Understanding the legal aspects of selling your app is just one piece of the puzzle. Equally important is valuing your app correctly to ensure you're not losing out financially in the deal. For more insights into how to value your app effectively and avoid common pitfalls, be sure to check out our comprehensive guide: How to Value an App Without Losing Money. This guide will provide you with key strategies and tips to accurately assess your app's worth in the marketplace.
When selling an app to a company, you may need to negotiate the terms of the sale. This could include the price, any customization or development work, ongoing support and maintenance, and any other considerations. It can be helpful to have a clear understanding of your goals and what you are willing to compromise on before entering into negotiations.
Some tips for negotiating the sale of your app include:
Do your homework: Research the company and the market to determine the value of your app and what you can reasonably expect to receive in terms of price and other terms.
Be prepared to compromise: While it is important to stand firm on key issues, be prepared to make some concessions to reach a mutually beneficial agreement.
Consider non-monetary terms: In addition to the price, there may be other terms that are important to you, such as ongoing support and maintenance, or the ability to retain certain rights or control over the app. Consider these non-monetary terms as part of the negotiation process.
Get everything in writing: Once you have reached an agreement, make sure to get everything in writing in the form of a legally enforceable contract or agreement. This will help to protect your interests and ensure that both parties are held accountable to the terms of the deal.
As we wrap up our guide on how to sell apps, it's clear that whether through marketplaces, direct sales to companies, or app aggregators, the key to a successful sale lies in thorough preparation, a compelling pitch, and a strategic approach to the market.
Remember, every app has its unique value proposition, and finding the right platform or buyer can make all the difference in achieving a profitable and satisfactory sale.
There are many platforms for selling your app to a company. It can be confusing to decide what avenue to choose when exiting with your app. Bluethrone simplifies the process by offering consultation that is catered to you and your app’s business development needs.
When pitching your app to potential buyers, make sure to highlight metrics that showcase the app’s value and stickiness, such as Daily Active Users (DAU), Monthly Active Users (MAU), and retention rate. Profitability and scalability metrics like new users, Cost Per Install (CPI), Lifetime Value (LTV), and Average Revenue Per User (ARPU) can help you communicate the app’s monetization and growth potential.
The app isn’t ready to sell until it has a monetization model that provenly works and is sustainable over time. Beyond revenue, investors also want to see metrics like user growth, engagement rates, and positive user feedback, which provide the app’s value and market potential. In addition to that, having a well-documented codebase makes the purchase easier and cleaner.
App investors frown upon products built with outdated technology because that usually means high maintenance costs and lower scalability potential. Aside from that, apps that are built for saturated markets present a significant risk due to increased competition and limited unique selling points.
Idan Waller
A die-hard digital entrepreneur and app industry innovator, I’ve dedicated my career to revolutionizing mobile applications. After growing in direct response marketing and founding the 100K and 10M clubs, I co-founded BlueThrone with my brother Alon. We’re committed to elevating extraordinary apps and shaping the app industry’s future, focusing on creating unparalleled user experiences worldwide.
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