Should i sell my iOS App for 200k?
Hello, i do have an iOS App app that makes me around $4k net per month. I have an offer to sell for 200k I am renting for $2k. Shall I sell it and put the money as a down payment for a house?
Will the $4k/ month be perpetual? What's your growth rate of user base? Revenue per user is stable/ declining / growing? Finally, look for competing offers, to bump up the $$.
Here’s a method to valuate your app: https://en.m.wikipedia.org/wiki/Discounted_cash_flow Make some assumptions and try to crank it out. This is a very common method for valuing companies, projects etc.
Selling a $50K/year cash flow product for $200K is quite low, only 4x revenue. This is like a 25% yield. I bet if you searched hard for a buyer you could get at least $500K-2M - 2.5-10% yield - especially if you branded it as a business
What app
What kind of app what does it do how is the growth potential for that market and how did you grow it so far
If user growth has been declining for more than 3 months or revenue slowing down then get out ASAP. If it is increasing then don’t sell
At least $500k
Where do you find buyers for apps? Are there any sites or portals that help you find them?
Sell it and move onto the next best thing. I’m going to assume this is a side hustle since you’re full time at Amazon and as so, if you’re not putting 100% into it and it likely will not sustain. Give them a counter offer that’s not too greedy. Then invest it in short term investments until the next bubble in 1-2 years.
Are you going to grow it further? That’s 50 months of revenue up front, sounds like a good deal.