Is App Flipping The Fastest AND Highest ROI Investment Of 2024?

What is App Flipping and How Can You Become a Mobile Mogul?

Have you ever stumbled upon a mobile app with a great concept but clunky execution?

Or maybe you've seen a hidden gem in a niche market struggling to gain traction?

This is where app flipping comes in.

Similar to website flipping, app flipping is the art of acquiring undervalued apps, improving them with your expertise and creativity, and then selling them for a significant profit.

It’s like flipping houses, but with apps. And you can make a LOT of money doing it.

But before you dive headfirst into the app store, check out our tips on how to get started with app flipping for beginners.

Higher ROI Than Real Estate Flipping (And In Half The Time)

Imagine buying an underrated app for a fraction of the cost of building one from scratch.

Now imagine that app goes viral and you become a millionaire.

And you can buy apps for even just a couple hundred bucks instead of having to spend thousands.

Then with your creative vision and (if needed) the help of a few development freelancers from networks like Fiverr, you can revamp the apps with more modern branding, a cleaner and easier UI, and a more rewarding user experience.

Or, if you’re already savvy with coding and app development, you could be running a one man show and make bank.

Apps typically sell for 12 to 36 times its monthly profits, so if your app profits even just $1,000 a month you can flip it for over $30,000.

Factor in an initial acquisition cost of $1,000 when you first bought the app, and that’s a 2900% return on investment (ROI).

So if you’re quick with development or project management, you could flip apps WAY faster than any construction company could flip a house, and for a WAY higher ROI than the 27% average ROI of flipping a house.

How insane is that?

How To Do Your First Flip

After finding a promising undervalued app, the process of app flipping begins with acquisition, where you can use online marketplaces like Flippa or AppFlip for secure app purchases.

Browse listings, analyze financials, and be prepared to potentially outbid competitors to land the perfect app for your budget.

You can also try writing an email outlining your vision for an app directly to a developer, and try to negotiate a fair price based on your research on average app valuations. Bonus tip: Search development threads on Reddit to find potential sellers who might be open to a direct deal.

Once you’ve acquired your first app, it’s time to start improving it in order to get more downloads and a more user retention.

So what’s the equivalent of installing a new bathroom and HVAC system in a flipped house but for a flipped app?

To start, streamline the navigation. (Make sure to hire a freelance coding expert to help with the following and factor this cost into your profit margin).

Revamp the design for a modern look, and optimize user flow for intuitive interactions. Think "easy to use, hard to put down". If users can't figure out how to use your app in seconds, they'll move on.

Is the core function of the app valuable? Conduct user research through surveys or focus groups to pinpoint user pain points and identify opportunities for improvement.

Add new features, refine existing ones, or remove unnecessary clutter that bogs down performance. Remember, a smooth and intuitive user experience is key.

Finally, get your app discovered.

Revamp the app store description, create engaging visuals like screenshots and app previews, and explore marketing channels like social media advertising or influencer partnerships.

Analyze the current monetization strategy and consider a freemium model with in-app purchases to maximize revenue. A strong marketing and monetization strategy is the engine that will drive your app's success.

You can also use this simple strategy to 2x your app’s store rating when you’re ready to optimize your marketplace performance.

Cashing In On Your Improved App

Now that you've breathed new life into your app, it's time to cash in on your efforts.

You can literally just head straight back to Flippa and AppFlip again to sell the app.

It’s like of like buying crappy furniture at a flea market, spray painting it, and selling it at the same flea market again. But with apps.

List your improved app with a detailed description highlighting its features, user base growth, and revenue potential. These marketplaces expose your app to a broad audience of potential buyers, increasing your chances of a successful sale.

Alternatively, if your app targets a very specific niche or boasts a loyal user base, a direct sale to another developer or company in that niche might be lucrative.

Research companies operating within your app's niche and consider reaching out to them to explore their interest in acquiring your creation. This approach can potentially lead to a higher sale price compared to the open marketplace.

The final price tag depends on several factors. A significant increase in downloads and active users since your acquisition is a major selling point. 

The BMM Takeaway

Start small and try to find real “steal” investment opportunities, such as any app under $1,000.

As long as the infrastructure and coding of the app is functional, the hard work is already there. Then it just needs a facelift.

These are the real diamond in the rough apps. The ones that won’t need much “plumping” work done. Just a fresh set of paint will do.