How To Sell An Idea For An App

My app idea has come to me… "What's next?

If you've ever asked yourself a similar question, you'll find our article helpful! Lucky for you, you're aware of the fact that you've only just begun your long journey to creating a successful app. Nobody knows about it.

As a matter of fact, many people believe that 99 percent of future profits come from coming up with great app ideas. Unfortunately, reality isn't always as rosy as we'd like it to be, and it often deceives us. The good news is that we have a detailed plan to fix your problem. It's as simple as that.

You see — you don't necessarily have to work on your app idea and get an app developed all by yourself. In fact, it's a time-consuming process. What we suggest you do is to sell your app idea to a 3rd party company that has the time and resources to develop the app — which you get for the rest of your life.

With its strong value proposition and a wide range of functionalities to choose from, you are confident that users will enjoy using it. It's also important to note that it has good monetization potential. However, Idea valuation is a challenge because ideas are intangible and cannot be quantified in any way. Your idea's value can range from $5,000 to $500,000.

There is a lot of information on the internet about how to sell an app idea which can be overwhelming. To make your life a little simpler the companies you can sell it to and the steps you can take to make money from your app idea will be discussed in this blog post.

I think we should get started.

The Art Of Selling

We have divided the selling part into two major categories:

Selling to a 3rd party company
Selling to the big giants

Sell-your-app-idea-to-a-third-party-company-1

#1 — Selling Your App Idea To A 3rd Party Company

This part includes a number of steps to start with. They are:

Making Sure The Idea Is A Viable One

Make sure that your app idea is viable before you take any steps toward selling it. In order to validate your ideas, you will need to conduct market research, competitor analysis, and focus group interviews.

To begin, market research is necessary. Identify your target audience with a market overview: For whom and why is your app more likely to appeal?

Study your competitors after that. Identify the strengths and weaknesses of your competitors' ideas by comparing yours to theirs. You should also reach out to people who represent the people who will be using your app and ask them what they think.

Look out for ways to improve your idea

A good idea isn't the only thing that needs to be validated. In addition, you'll be able to gain valuable insight into how to improve your app idea.

Reuse your research results in your app idea to make it even more competitive. Your app will become more appealing to potential investors and tech companies who may be interested in using it for their business ventures.

Think about future mobile app development trends as well. Applications powered by on-demand, mobile commerce, AI, and augmented reality are on the rise.

Get Your Prototype In Place

Creating a business plan is a difficult, but necessary, task that must be completed. If you use this tool, you'll have an easier time communicating with investors about the opportunities your application creates for their company's success. Regarding an application that is still just an idea, pay attention to these sections of the business plan:

As a result, you should come up with as accurate a project development estimate as possible so that investors can see the economic feasibility of investing in your idea and its development.

Create A Sales Pitch

To sell your app idea, you need to tell a 30-second story that will convince the audience that it's valuable and make them want to pay for it (or not).

However, your sales pitch should be directed at your target investors (investors interested in a specific niche), focus on the problem you plan to solve and how you plan to do it, as well as list your most important benefits.

And Bump It Up With A Robust Business Plan

— Get a Development Estimate:

As a result, you should come up with as accurate a project development estimate as possible so that investors can see the economic feasibility of investing in your idea and its development.

See More:

Cost Breakdown For On Demand Delivery Apps

— Business Model

Explain your business model as clearly as possible, since this is how your app will make money in the long run. As a result, the business model needs to be legally compliant, industry-accepted, and revenue-promising.

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With Customized On-Demand Solutions by OyeLabs

— Marketing Strategy

It's also important to suggest ways to market your app, backed up by cost estimates. Keep an eye on your niche's brand development strategy, social media promotion, SEO, and other tactics.

Get Your App Registered

The next step in protecting your intellectual property rights is to register your app's name and logo as a trademark. Don't forget to do it! Afterward, your application idea is ready for potential investors to hear about. Keep in mind the importance of software licensing to safeguard against hackers and piracy.

Get In Touch With Potential Investors

— Make a list of tech companies that are willing to invest in app projects.

There are plenty of tech companies that are willing to buy other projects if you're looking to sell the app. The simplest way to find tech unicorns is to do a Google search for them, as well as research recent acquisitions and investments in them. Make sure you don't limit yourself to one country or region. Anywhere in the world can be a buyer.

— Choose companies that are relevant to your business.

Analyze the company's profile, read about its recent acquisitions, and try to understand if your app fits into its business model and development roadmap before submitting your application.

— Contact the potential investor and make a pitch to them.

To begin pitching companies, you must first compile a list of necessary contacts. The channel you choose to use is entirely up to you. Messages and emails on LinkedIn can be the first step, followed by phone calls and personal meetings. Attend startup events and meetups to meet the representatives of these companies.

Never divulge too much information about your application. All of the information you provide should be disclosed under the mutually agreed upon non-disclosure agreement (NDA). Your potential buyer will perform due diligence. Be sure to hire a lawyer if you think you'll need one.

Define Your Terms And Conditions

It's not easy to sell a concept for an app, but there are ways to make it profitable. For now, you'll have to negotiate a price and other favorable terms.

So, for example, you're not obligated to sell an idea along with all of its intellectual property rights. Consider instead forming a partnership in which you will be entitled to a portion of the profits.

This is especially true if your idea is truly innovative and perfectly tailored to the business or user's problem.

Finalize Your App Before Selling It

As I've said, selling an app idea to a company is more difficult than selling a ready-made app. A lot of people feel that finalizing their app is more beneficial than selling a mere idea after going through all of these steps. In comparison to simple ideas, ready-made apps require more time and money, but they're also more lucrative.

Consider all the advantages and disadvantages of each strategy at this stage. This is especially true if you have the technical know-how to complete your app. You may want to sell your idea if the costs of technical development outweigh any money you might make from selling a ready-made solution.

However, selling your application at the MVP stage may be the most profitable strategy. As of this point, you've got a working solution, you've got real insights from your target market as well as the market itself, and you're able to show investors real business value.

#2 — Selling Your App Idea To Big Tech Giants

Sell To Apple

No doubt that Apple would be willing to buy your app idea and turn it into a successful product. But how do you get in touch with them? No one you know works there. In this case, your first step is to go to Apple's website and click on "Contact Apple". You're confused at first because there are so many ways to contact Apple. Then, you find a feedback option and begin describing your idea.

Sadly, Apple does not accept any suggestions. In their Unsolicited Idea Submission Policy, Apple makes it clear that employees and contractors are not to be approached with proposals, materials, or works.

In addition, Apple's policy states that if you submit your idea, Apple will treat it as its own, and you will not receive any compensation or reward in return. This means you'll never find out who the real hero is if you submit a revolutionary idea to Apple and they develop it and make it a success.

Although successful apps like Siri, which was purchased in 2010, are purchased by Apple. According to reports, Apple paid up to $200 million in dividends to Siri's investors in the past.

Sell To Android

Google Play, the app store for Android, has about 2.5 million apps. As far as the number of apps published, this is the most popular app store. The Google Play Store might be a good place to look if you have an idea for an app that isn't already out there.

Google does not explicitly state that it does not accept ideas. Like Apple, they do accept them, but they do not pay for them.

Do not expect money in return if you are feeling altruistic and submit your idea through a simple online form. In order to make money selling your app to Google, you must first create a high-quality app, market it, and ensure that Google will accept it.

Big corporations like Google, Apple, and Facebook often buy smaller companies to help them compete with each other. "Firework" – an app similar to TikTok — was recently reported as a Google acquisition target. YouTube's dominance could be threatened by TikTok's format of short 30-second videos. In addition to "Lasso", Facebook is also developing a similar app for short videos.

Wrapping Up

When it comes to app ideas, you won't get paid for having a good one. Work on the application and treat it as a business if you want to sell it. Your app would benefit from contacting many of the major players in the industry.

Apple, Android, Facebook, and other tech giants are just a few of the big players, but there are also a number of investors and companies that are willing to assist you at every stage of your app development process.

This is a process that can pay off handsomely if you don't take shortcuts and are patient with your app idea.