Terasol's Insights to Innovative Software Development Services

How to Sell an App Idea In 2022?

Written by Kanika | Oct 4, 2021 6:30:00 PM

You're an innovative person who comes up with new ideas, discovers new things, and has a creative mindset in general.

One day, an app concept appears in your head. Having a great concept doesn't always imply having the time, money, or other resources to put it into action.

Don't only think about such ideas; discover a means to earn profit from app ideas as soon as possible. Now you're looking for the best technique to present a concept to a business? 

Now you look for an answer to the question, "How to sell an app idea to a company or an investor?" 

Although you can sell an app idea to companies, there are certain things you need to figure out before actually selling the app:

  1. Does it solve any specific problem?
  2. Is your idea a unique, feasible, and efficient solution to the problem?
  3. Is your app idea a better solution and has a unique selling proposition?

Let us see what more you need to know about selling an app idea.

Selling Is An Art!

The selling section has been separated into two major categories:

How To Sell An App Idea?

You know you have a great app idea, but how to pitch an app idea and to whom?

How To Sell App Idea To Company or Third Party Firm

There are smaller corporations, as well as mid-size companies based outside of the United States, that may be interested in purchasing your software project.

While you're seeking a buyer for your app, certain IT companies may be interested in acquiring promising app concepts and ideas.

If you look through the multiple LinkedIn profiles of these companies' workers, you'll discover people with titles like "Investment manager" – these are the people in charge of investments and acquisitions.

1. Formulate and Put the Idea into Paper

First, write down all of your abstract ideas. Make all of the information logically organized and legible. Describe your app, including what it will do, what features it will have, and what value it will provide to consumers. Define your app's major target audience.

Next, explain what your product can do and what problems it can answer for potential users. Make a list of any ideas you have for your app's design, name, marketing, monetization techniques, or anything else. It doesn't have to be particularly extensive, but it will come in handy as you begin developing your business plan.

2. Research and Analyse the Information on the market and the users

No matter how confident you are in the quality of your app idea, make sure you do the research and have all of the necessary information about the broader market, your competitors, and your potential users. Know the overall market of the app idea you have. Check to see if your concept has previously been implemented in another app. Analyze the competitors' solutions' pros and cons. What are the other distinguishing traits of your users? 

3. Create a Business Concept

Based on the preceding two processes, the business concept should be a detailed paper. This is the stage where you should polish your app concept and show a clear business plan. It should include answers to any questions that your investors may have.

Typically, a business concept presentation will have the following topic blocks:

Cost Estimate for Development:

You need to estimate the cost of the development of an app. As a result, you should come up with as realistic a project development estimate as possible so that investors can evaluate if investing in your idea and its development is financially feasible.

Business Plan:

Explain your business plan as thoroughly as possible, as this is how your software will generate revenue in the long term. As a result, the business model must be lawful, acceptable by the industry, and revenue-generating. 

Roadmap for Growth:

Know the details: 

  • Number of downloads expected throughout time;
  • Number of daily, weekly, and monthly active users expected
  • What is the expected retention rate, and how can you achieve it?

4. Strategy for monetization

What do you believe your app's revenue model will be. You need to know how to can make money from an app idea. You may design the ideal revenue generation plan for your app idea once you understand your target audience's thinking and financial situation. The following are the most prevalent options for app monetization:

Invest in a paid app model

There are various free apps available in the app store, but most of them are either useless or provide a very minimal function. People will gladly pay for your services if your software is unique, advanced, or both. As a result, the premium app model is the most straightforward revenue source to adopt.

Paid Model for Pro App

These apps offer a simple app that is free to use. Users can access (only very) minimal functions with this app. They limit advanced capabilities and require that you upgrade to the pro edition to use all of their services.

Freemiums Apps 

The most popular model for app entrepreneurs to rely on for their major revenue is in-app advertisements. Almost all current apps rely on this strategy for a significant portion of their earnings. Companies are charged based on the ad's screen size and length.

Virtual Goods for Sale

For the time being, this concept is only employed in entertainment apps, particularly gaming apps. Users can buy virtual objects like guns, automobile components, and other items to modify their in-game avatars in games like PUBG, Call of Duty, and NFS.

5. Marketing Strategy

It's also crucial to make marketing suggestions that are backed up with expense estimates. Keep an eye on the brand development plan, social media promotion, SEO, and other strategies used by your niche.

6. Choose the Right App Development Process

Once you know the business concept and how to sell the app idea, you might have to know the best suitable app development process for the same. There are different approaches in the market:

  1. POC- Proof of concept
  2. Prototype 
  3. MVP

the next thing to analyze before selling any app is what app model will you go with. 

7. App's Launch and Growth

Your app's debut should be preceded by extensive testing. The information about launching activities is already included in your business concept presentation. So, assuming you've addressed that issue, all you have to do now is put your plans into action.

Keep up the excellent work and build your app to attract investors - raise the number of users, provide new features, boost retention and engagement, connect with your users, and so on.

8. Get in touch with potential Investors

You will need an investor who can invest in the development of your app. You can go for any venture capitalist, accelerator, angel investor, or Micro VC. However, you can also approach a 3rd party company, all you need to do is:

  • Make a list of tech firms that are interested in investing in app development.
  • Choose businesses that are relevant to your industry.
  • Make contact with the possible investor and make your case.

Never reveal too much about yourself or your application. Under the mutually agreed-upon non-disclosure agreement, all of the information you submit should be released (NDA). Due diligence will be performed by your potential buyer. If you think you'll need a lawyer, make sure you get one.

9. Define the Terms and Conditions 

Although selling an app concept is difficult, there are ways to make it successful. For the time being, you'll have to haggle over a price and other favorable terms.

10. Finalize your App Idea Before Selling

Selling an app idea to a corporation is harder than selling a ready-made app. After going through all of these procedures, many people believe that finishing their software is more useful than selling a mere idea.

Ready-made apps take more time and money to develop than simple concepts, but they are also more profitable.

At this point, consider all of the benefits and drawbacks of each option. This is especially true if you have the necessary technical skills to finish your software.

If the costs of technological development outweigh any profit you may make from selling a ready-made solution, you might wish to sell your idea.

Selling the App Idea to Big Giants of the Market

Selling the app idea to Apple: 

Apple would undoubtedly be willing to purchase your app concept and make it into a popular product. However, how do you contact them? There is no one you know who works there. Apple, unfortunately, does not take proposals or suggestions. Employees and contractors are not to be contacted with proposals, materials, or works, according to Apple's Unsolicited Idea Submission Policy.

Furthermore, Apple's policy stipulates that if you submit an idea, Apple will treat it as its own and will not compensate you or reward you in any way. So, if you believe your app has the potential to fit into Apple's plan, you'll need to create a high-quality, well-known product, and maybe you'll be lucky enough to sell it.

Selling the app idea to Google:

In terms of the number of apps available, this is the largest app store. Whether you say, "I have an app idea," and it's something new, you might want to check the Google Play Store to see if there's something similar.

Google does not explicitly indicate that it does not accept ideas.

So, if you're feeling charitable, you can submit your concept via an online form, but don't expect any compensation.

If you want to make money by selling your app to Google, you must first create a high-quality app, market it, and ensure that Google is aware of it.

For Google (or any other big tech company) to notice your app, it must be of sufficient quality to help the company compete and surpass its competitors. Another option is to provide a solution that will aid in the company's product improvement.

Wrapping Up 

If you still want to pitch an app idea to Facebook, Google, or Apple, keep in mind that tech titans don't pay for mere ideas. These businesses buy ready-made solutions with the ability to improve their products and be on the leader board.

The value of an app idea is determined by how well it is implemented. If you pitch an app idea to a larger app development company, they'll be eager to buy your solutions to improve their products and compete against their competitors. Numerous companies buy high-quality projects all across the world.

However, don't expect to get wealthy overnight: generating millions of dollars from selling your app concept will necessitate a lot of hard work, including developing the app and ensuring that it continues to expand.

If you have a unique idea and want to sell an app but do not know anything about app development. You can contact us, we will help you make your dream app become a reality and you can then earn millions by selling a ready-made app.