Buying an app is similar to buying a website, with a few key differences. You’ll want to conduct due diligence for your purchase, both by carefully examining the app and by finding other information about the application and the seller.
Review app store listing
When researching if the app is of good quality, the first thing we recommend doing is reading the app’s listing very carefully, looking for any discrepencies in what they have provided in the Flippa listing description.
Additionally if the listing has reviews, you should have a read through these to see what end-users have thought of the app. Multiple bad reviews can be a leading indicator that the app might not be worth it.
Download and test the app
By downloading the app and testing all of the advertised features, it will give you a quick understanding on whether the app has been built well and if it’s using false claims to drive downloads.
While using the app, you should also check for any obvious bugs or defects with the platform. Any bugs or defects will most likely require fixing, which will cost developer time and money.
Also, checking for any potential improvements on the app at this stage is a good way of determining the potential the app has for growth. If you are looking for an app to generate passive revenue without wanting to grow the app’s potential, this might not be a deciding factor.
Request read-only analytics access
Both Apple and Google provide amazing analytics dashboards where you can view the performance of the app. By reviewing the analytics data for the app, you will be able to verify claims made on the listing, as well as identify key information about the app’s audience, such as location breakdown and retention.
Research similar applications
When trying to build any successful product, you must know your competitors. When purchasing an app, research should be undertaken into similar apps to see the benefits and weaknesses your app has over the competitors.
Licences for platforms used
If the user has utilised any platforms or templates to build the app, you should ensure the proper licenses are included in the sale of the app.
One important step before purchasing any type of business through Flippa is ensuring the seller isn’t fraudulant. The following can assist in reducing the risk of fraud occuring:
- Google the name of the seller and the app to check for red flags.
- Skype or call the seller to discuss the sale.
- RipOffReport should reveal if the app or business has been mentioned in any scams.
- Pacer.gov will reveal details of any legal action taken against the seller or business.
- If the seller is local, or the value of the transaction is large, arrange to meet with them to discuss or view further details of the app.