To any of you wondering how much your app is worth
Hello Everyone,
When I first read this article on techcrunch.com I thought maybe this app would sell for $3000.00 tops, it is about an iPhone app developer selling his app on ebay. The owner says he made $300 last month from this app. Because of the exposure the app is now up to $14,600.00 on ebay.
If this guy can get this much for an app with $300 a month revenue and declining (looking at the rankings.) Imagine what some of you guys who are in the top 200 can get...
hmm.... interesting strategy to get extra exposure..
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Wow, this just goes to show how naive people still are concerning apps. I think the price is so high because of the techcrunch article. Free exposure is like catching lighting in a bottle.
I wonder what it would go for without the exposure... I would guess $1-$3K maybe.
I thought apps were non transferable. Maybe the buyer is gonna change their name to Neal Schmidt.
I guess since it doesn't have much traction anyways, maybe the purchaser will relaunch the app, but then there are no guarantees that the $300 a month continues without the search traction, total download numbers etc.
Well, Techcrunch wrote about him, so I'd say that this is where the price comes from.
But, on the second thought - I've got an app that is very polished, very nice, and doesn't sell too much.. Perhaps I should sell it as well.. What do you think, guys?
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Wow, this just goes to show how naive people still are concerning apps. I think the price is so high because of the techcrunch article. Free exposure is like catching lighting in a bottle.
I wonder what it would go for without the exposure... I would guess $1-$3K maybe.
I thought apps were non transferable. Maybe the buyer is gonna change their name to Neal Schmidt.
I guess since it doesn't have much traction anyways, maybe the purchaser will relaunch the app, but then there are no guarantees that the $300 a month continues without the search traction, total download numbers etc.
Millions to you my friend is like finding $0.02 down the back of the couch
hardly haha.
seriously though I think there is somewhat of a natural cap to this sort of thing. If you are in the top 200 you are probably doing 30K/mo which means 1.5 mill at this valuation. So you are no longer in "idiots with money" territory but serious acquisition offers territory. In other words, I say there is no way this math works out if you have a successful app.
$300/month = $3600 a year, a $3.6k return per year on $15k is 24%, the app is cheap.
Your return is assuming the current app market stays the same and the app continues its current revenue. The difficult thing is knowing how the landscape will change.
You need 4 years of consistant sales to make your money back, yet the app store is not even 4 years old. Plus, you conveniently left out the $730 in Amazon server a year plus the $100 dev fee. Cuts into the return a bit.
$300/month = $3600 a year, a $3.6k return per year on $15k is 24%, the app is cheap.
except apps are not passive investments. I don't see it doing $3600 year for the next 4 years without any additional work put into it.
Most websites on flippa.com go for about 6-12 mo revenues, and websites are a more consistent revenue stream than apps. I would say fair market value for an app is probably in the same range, if not slightly lower.
Still, props to that guy for thinking outside the box.
Yea I can definitely see an app like yours getting a serious buyout. Like from ESPN, Yahoo, etc... But you don't seem like you are looking for an exit. Which is good.
Wow the auction is up to $16K... This is getting interesting.
Your return is assuming the current app market stays the same and the app continues its current revenue. The difficult thing is knowing how the landscape will change.
You need 4 years of consistant sales to make your money back, yet the app store is not even 4 years old. Plus, you conveniently left out the $730 in Amazon server a year plus the $100 dev fee. Cuts into the return a bit.
Yeah I didn't look into it in too much detail, but the return is in that ballpark.
There is risk of course, as with all investments, your money isn't safe in a bank either these days. I don't think it's too expensive all things considered.
Most websites on flippa.com go for about 6-12 mo revenues, and websites are a more consistent revenue stream than apps. I would say fair market value for an app is probably in the same range, if not slightly lower.
Maybe so, but I can't think that many developers who would sell for 6 months revenue, why not just wait those 6 months instead? That seems too low for me. As with anything, it's worth what someone is prepared to pay, and with little choice in investments giving a decent return at the moment I can see why it makes sense for someone to pay that much for it.
Good ROI in a risky environment should be 2 years. Not more.
If the app is making $300/mo now and without any additional development let's assume that it will be making $100/mo the second year. that makes 300*12+100*12=4800. Subtract $200 Apple's fees and Amazon hosting fees (let's say $100/year - minimal use) which leaves us with $4400 - that's the real amount that's worth investing. For $4400 you can also hire somebody to develop an app like that, so that's the right price.
I'd like to see the fool who bought this app for $16k.
__________________ Game Pack - All-in-1 Game Pack Shinro - A combination of Minesweeper and Sudoku Nibbles - Remake of a classic snake game Hooptie Browser - Humorous web filter
Maybe so, but I can't think that many developers who would sell for 6 months revenue, why not just wait those 6 months instead? That seems too low for me. As with anything, it's worth what someone is prepared to pay, and with little choice in investments giving a decent return at the moment I can see why it makes sense for someone to pay that much for it.
right, which is why there are not more apps that are sold I think. The majority of cases I've heard of are more talent acquisitions than app sales. The incentives just don't work out very well for a marketplace of apps.
Good ROI in a risky environment should be 2 years. Not more.
If the app is making $300/mo now and without any additional development let's assume that it will be making $100/mo the second year. that makes 300*12+100*12=4800. Subtract $200 Apple's fees and Amazon hosting fees (let's say $100/year - minimal use) which leaves us with $4400 - that's the real amount that's worth investing. For $4400 you can also hire somebody to develop an app like that, so that's the right price.
I'd like to see the fool who bought this app for $16k.
prediction: whoever buys the app will soon post in the promotion forum to get advice on how to promote it =)
I actually think the techcrunch factor should not be underestimated. If the buyer plays his hand right he can get some good media coverage for the app relaunch based on the fact that it is somewhat famous now. I would probably put in a bid at 10K, but no more than that.
prediction: whoever buys the app will soon post in the promotion forum to get advice on how to promote it =)
LOL true
__________________ Game Pack - All-in-1 Game Pack Shinro - A combination of Minesweeper and Sudoku Nibbles - Remake of a classic snake game Hooptie Browser - Humorous web filter
I thought apps were non transferable. Maybe the buyer is gonna change their name to Neal Schmidt.
I guess since it doesn't have much traction anyways, maybe the purchaser will relaunch the app, but then there are no guarantees that the $300 a month continues without the search traction, total download numbers etc.
He is selling the entire iTunes account with the apps so the new owner can keep traction, ratings, etc. It also comes with four other apps that he didn't even bother to mention because they are making about $1 a day each. Popular Brands, Popular Faces, Popular Places, Popular Movies.
I'm sure the new owner could submit the proper paper work for a name change if needed. Some companies prefer to sort there apps into a few different iTunes accounts anyways.
It could be Donald Trump who bought it. 16K is loose change in his pocket.
If Donald Trump bought this game I'd call him twice fool One for having his casino going bankrupt.
__________________ Game Pack - All-in-1 Game Pack Shinro - A combination of Minesweeper and Sudoku Nibbles - Remake of a classic snake game Hooptie Browser - Humorous web filter
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