Today we sit down with app entrepreneur Michael Patzer, who has completed 9 successful Flippa sales with a 100% positive feedback rating. In this interview Michael gives us the inside scoop on his latest sale, a $10,000 app portfolio, while also sharing insightful tips and strategies others can use to achieve success selling apps on Flippa.
What lead you to become an iOS App Developer?
I studied Finance at the University of Southern Indiana and graduated in 2009. In 2010, I started learning how to develop iOS apps. It didn’t take long before I was hooked, and I decided to make a career out of it. Since then, I have built and sold more than a dozen apps, and I’m currently employed full-time as an iOS Engineer at an e-mail marketing company.
What are some of the apps you’ve sold on Flippa?
I have always enjoyed building both useful and fun apps, and the apps I sell typically follow this trend. For example, I built and sold County Finder, a location app which allows users to quickly and easily look up counties via search or maps. I have also built and sold game apps, such as Word Frenzy, a fun word building game. In addition to games, I also enjoy building functional utility apps such as a text language translator app that I sold for $800, as well as an audio recording and playback app that I sold for $600.
Tell us about your recent $10,000 app portfolio sale
The portfolio was composed of 4 adventure and lifestyle apps: Alti, Ella, Zen Habits, and Life Hacks. Alti is an altimeter and compass, while Ella tracks elevation changes over time (e.g. for hiking & road trips). Zen Habits displays up to date content from the famous Zen Habits blog in a minimalist style, and Life Hacks gives users a feed of thousands of different life tips and tricks for different categories. During the auction the portfolio received more than 60 bids on top of nearly 100 watchers, and it was ultimately closed out via Buy It Now (BIN) for $10,000.
What prompted you to sell your app portfolio?
I developed the apps in the portfolio with a business partner of mine who is a mobile app designer. These apps reflect our shared interests and hobbies, and we built them for other likeminded people to enjoy. For us, it wasn’t so much about the money as it was about providing a good user experience. As our real-world careers took off, however, it became more and more difficult to find time for the apps. Rather than earning passive income while they became less relevant, we felt it would be best to find a buyer who would keep the apps updated and continue to improve them.
Why do you use Flippa to sell your apps?
Flippa makes it really easy to create a listing and get instant exposure. There are a ton of people buying apps on the platform (a lot of the website & domain buying audience seem to be interested in apps now too), and Flippa has the lowest commission in the industry by far. All in all, I’ve used Flippa for 9 transactions totaling over $14,000 in sales. As a result, I’ve gained a solid understanding of app valuations and the types of apps buyers are interested in acquiring.
Any advice for other entrepreneurs looking to sell their apps?
One piece of advice would be around iCloud. The main challenge in selling the portfolio was that all apps in it had previously used iCloud, and Apple would not allow them to be transferred. Even removing iCloud didn’t solve the issue. In this case, you will have to sell the entire app developer account along with the apps, and you need to explain this in the listing description. Another piece of advice is to be realistic about app valuations. It’s easy to overvalue something you’ve built, but buyers want an asset that can give them a return on their investment (usually in 1-2 years).