Last updated on August 21st, 2024
Are you searching for the best way to pitch an idea to a company? Specifically, are you wondering, “How do I sell an app idea to a company or an investor?” I was in your shoes a couple of years ago, and eventually, I discovered the ideal approach. I’m going to share the most effective way to pitch an app idea to investors. Why, you ask? Because that’s the foundation of business growth and creating job opportunities. Think about Angry Birds—as it turns out, the man behind its success, Niklas Hed, co-founder of Rovio, saw potential in what started as a simple sketch.
Today, Rovio Entertainment and the Angry Birds brand are valued at over $2.5 billion. This staggering success wouldn’t have been possible if Niklas hadn’t taken an interest in that lone sketch, and the billion-dollar idea might have ended up in the trash. However, relying solely on luck isn’t enough; you need to work hard and master the art of selling your app idea for the best price. So, who’s ready to become a millionaire (or even a billionaire)?
How to Make Money from an App Idea?
Honestly, no one wants to buy app ideas. Anyone willing and able to put in the months of effort to develop an app already has dozens of ideas of their own. Developers aren’t on the lookout for someone to sell them an app idea. In fact, in casual conversations with app developers, you’re likely to hear, “Hey, I have an idea for an app. It’s like Tinder/ Uber / WhatsApp, but for [a specific niche]. If you build it, we can share the profits 50/50.” This scenario is quite common and can be incredibly frustrating for developers.
The truth is, an idea alone has no intrinsic value. Even billion-dollar app concepts only start to hold real value once a proof of concept is developed. To make an app idea worth millions, you need to put substantial work into market research, project management, capital raising, development, and marketing. These are the elements that give your app idea its value. If you’re ready to invest the time and effort required, you can turn an app concept into a profitable venture. But simply having an idea without the commitment to build upon it will not attract any buyers.
Also Read: Leading 50+ Innovative Mobile App ideas for Startups
Create a Unique App Business Concept So As To Sell App Ideas To Companies
I know there have been hundreds, if not thousands, of blogs and videos on creating the “perfect business plan” for your app startup. Most of them offer the same advice: learn from your competitors and create something better. While this strategy is valid and time-tested, that’s not our focus here. This blog is about developing a UNIQUE app business concept, with an emphasis on the “unique” aspect. For instance, take Uber. There are countless Uber-like startups, but only a few of them truly thrive. The reason for their success is that instead of just offering a generic app-based service, these unique companies either identified a specific niche audience to serve or introduced a distinctive service that only they could provide.
Here are a few app-based startup ideas:
Rather than developing a basic document scanner app, consider creating one that can scan documents in any language and translate them into another language instantly. Instead of designing a standard interior design app that lets users choose colors from a predefined palette, innovate by incorporating AR/VR features to allow real-time changes in wall colors and furniture selections from any online home design catalog.
You can also focus on niche user categories. For example, while many apps target online chat rooms for gamers, you can create a platform with virtual study rooms for students. Moreover, think of a taxi service app tailored for pet owners who want to travel with their pets comfortably.
Study Pros & Cons of Your Competitors’ Application
I know that I did tease all the blogs that gave the same information, but I repeat that the advice is 100% solid. After researching all the similar apps to your app idea, you’ll have a few apps who’ll be your perfect nemesis that you first need to understand and then surpass. Learn about these apps and the services they offer.
Dive deeper into their customer feedback to understand how users feel about the app and its offerings, identify what their app is missing, and figure out how your app can provide what theirs lacks. You must have already read in some blog to pay attention to your competitors’ user ratings and reviews. Well, I’d like to add another point: observe the release dates of their latest version updates – they could be lagging in technical, visual, or other aspects.
If you address these gaps, where your competitor’s app is deficient, people will most probably choose your app over theirs. By offering something newer and in line with current technological trends, you are raising the bar for others, and if you consistently do so, you’ll stay on top of the app marketplace.
What’s Your App’s Advantages Over Competitors?
I’ll help you make the best app in your industry, but first, you have to answer my question. Why would I download your application instead of your competitors’? This isn’t some kind of trick question or reverse psychology tactic. This question is the key to making the best app in your chosen industry.
Simply providing what your competitors lack in their app is only a temporary solution until they catch up, which they likely will within a month or so. To create a lasting impact and a real monopoly, you need to offer something that no other company has done or will be able to do in the near future.
This could be an innovative feature, a unique user experience, or an unparalleled level of service and support. Consider what will set your app apart in a crowded marketplace and resonate deeply with your target audience. Think about long-term strategies that can continually evolve and adapt to stay ahead of the competition. Only then can you truly dominate your industry with a groundbreaking application.
Some of the best examples in businesses:
Coke has never revealed its recipe, and it’s not just the recipe itself but the intrigue it creates that helps sell Coke. Similarly, in India, Reliance Jio disrupted the entire telecom market by offering free SIM cards with free calling, free messaging, and free internet for almost two years. This bold move reshaped the landscape, demonstrating that only companies and startups with the most innovative app ideas and the bravery to experiment with unique approaches can thrive in today’s competitive environment.
If you mix the same two chemicals every time, you’ll get the same result each time. To succeed, find a distinctive formula for your app-based business idea and offer something your competitors can’t. The key lies in providing unique app features and the most user-friendly app design, rather than getting bogged down by questions like, “how much does it cost to design a mobile app?”
How to Sell an App Idea & is Your Idea Worth It?
You don’t have to spend thousands of dollars to test whether your app idea will work. You can check the viability of your app idea with just a few hundred dollars by creating a dummy website. This is an innovative and cost-effective way to gauge interest in your app concept. Design and build a website that showcases your app idea as if it already exists. Include descriptions of features, dummy app screen designs, and an app download button.
Market this website link on social media and other digital platforms targeting your desired audience. Consider running a small ad campaign for as little as $50 to calculate your Return on Investment (RoI). This campaign will provide a rough estimate of your cost per download. Analyze the website’s visitor statistics and track how many people click the download button.
Although the button won’t actually download anything, the data collected will give you an idea of the level of interest in your app. If you receive a positive response, you’ll know it’s worth pitching your app idea to investors.
Read More: Top Innovative Artificial Intelligence App Ideas
How Will Your App Idea Generate Money?
Any investment aims to make a profit. So, if you’re wondering, “how to make money from an app?” you’re on the right path. The key question now is: how will you sell your app idea and generate profit from it? Before settling on a revenue model for your app, there are several important questions you need to address. For instance, what is your target market? What are their needs and preferences? Are there existing apps that serve a similar purpose, and how are they monetized? Understanding these aspects will provide valuable insights into your potential audience and competition.
The answers to these questions will help you formulate an effective revenue plan for your app idea, ensuring that you can not only launch your app successfully but also sustain its profitability in the long run. Firstly, what demographic are you targeting as your audience? Secondly, is your app’s target audience financially reliable? Thirdly, how do you plan to introduce your app solution to them?
Lastly, what methods of interaction are you considering for your target audience? By understanding your target audience’s mindset and financial circumstances, you can develop the ideal revenue model for your app idea. Some of the most popular revenue options to choose from include:
Go for Paid App Model
There are numerous free apps available in the market, yet many of them either fall short in terms of quality or provide only rudimentary services. However, if your app stands out as unique or offers advanced features—or even both—users will be willing to pay for your services. Therefore, the paid app model emerges as one of the simplest and most straightforward revenue models you can implement.
Pro App Paid Model
Many camera apps adopt this model, offering a basic version of the app free of charge. This free version typically includes only fundamental features, allowing users to perform essential tasks. However, to access the full range of advanced features, users must purchase the pro version. This approach provides a more comprehensive revenue strategy than the basic paid model, as it entices users with an initial, no-cost experience while encouraging them to upgrade for enhanced functionality and services.
Include In-App Advertisements
In-app advertisements represent the most commonly utilized revenue model among app startups. Nearly all recent apps rely significantly on this approach to generate a substantial portion of their income. These apps monetize their platforms by charging companies based on the screen size of the ad and its duration.
Implement In-App Purchases
The in-app purchasing model is the second most preferred revenue model following in-app advertisements. It is particularly ideal for apps designed for games, photo or video recording, editing, or any application that offers an extensive range of services and features. This model operates as a micro version of the paid pro app model. Rather than paying a substantial fee for the entire app, users only pay small amounts for specific features or add-ons they require. This approach is known as “Freemium apps,” a combination of “Free” and “Premium.”
Selling User Data (Legally)
If your app idea involves collecting non-sensitive user data such as age, location, and preferences, you can generate revenue by selling that data to interested companies. However, it’s crucial to tread carefully, as there’s a thin line between generating revenue ethically and violating user data laws. You must provide a disclaimer to users upon downloading the app, clearly stating the types of data you will collect and how it will be used. As long as you operate within the legal boundaries, you should have no concerns.
Selling Virtual Goods
This model is currently exclusive to entertainment apps, particularly those in the gaming industry. Popular games like PUBG, Call of Duty, and Need for Speed offer virtual items such as weapons, vehicle parts, and other enhancements that players can purchase to upgrade their in-game avatars. Enthusiastic gamers are often willing to spend money on these virtual goods to enhance their gaming experience and gain a competitive edge.
How to Advertise Your Future App?
Several visionaries have shown that a groundbreaking idea is what truly sells a product. Steve Jobs was the driving force behind Apple’s success, and Elon Musk is propelling Tesla into the future of electric vehicles.
While you don’t need to become a celebrity business rockstar like them, you do need to find unique ways to market your app ideas. Hiring an excellent marketing team to devise a flawless marketing strategy for your app is essential. However, remember that no one will understand your app as well as you and your development team.
Therefore, it is crucial to discuss and align on the right marketing approach with your technical team. Some mobile app development companies also offer marketing services to their clients, which could be a viable option to consider.
Where to Find Investors for Your App Concept?
As we approach the conclusion of both this blog and the realization of your app vision, you may wonder where these elusive benefactors dwell who can help you launch your dream company with your innovative app idea.
Discovering investors is not as challenging as it seems; the real challenge lies in capturing their interest in your app concept. This is something we will delve into in the next section. We have already written an extensive blog dedicated to the process of attracting app investors. For now, let’s focus on where you can encounter potential investors:
Startup Platforms
Start your journey by exploring platforms like Startups.co and Gust.com, which are renowned for connecting entrepreneurs with investors and resources tailored to launching new ventures.
Business Angel Networks
Another potential goldmine is joining business angel networks such as Funded.com, Angel Capital Association, and Angel Investment Network. These platforms enable you to connect with affluent individuals interested in investing in startups.
Crowdfunding Platforms
Crowdfunding platforms like Kickstarter, Peerbackers, Indiegogo, RocketHub, and OurCrowd offer an opportunity to secure funding directly from the public. These platforms allow you to pitch your app concept to a broad audience and attract small contributions from a large number of backers.
Business Incubators & Accelerators
Consider programs like 500Startups, TechStars, and Y Combinator, which provide invaluable resources, mentorship, and funding. These incubators and accelerators can significantly boost your app’s development and market entry.
Professional Social Networks
Utilize professional social networks like LinkedIn, Xing, and Plaxo to broaden your reach and connect with industry professionals, potential partners, and investors who can support your app’s growth.
How to Pitch and Sell App Ideas to Interested Investors?
Did you successfully follow all the steps mentioned above? Fantastic! Now, you are ready to venture into the competitive world of investors and venture capitalists (VCs). Don’t worry—it’s not all that intimidating! Although the competition is fierce, with numerous app ideas being pitched to every major VC, there are ways to make your proposal stand out and capture their interest.
Your primary goal is to showcase your app-based business idea in such a compelling manner that it gets funded swiftly. Here are a few strategies on how to present and pitch your app idea effectively. Remember, investors are primarily looking out for their own interests. They might offer you the lowest possible deal to maximize their gain, so approach with caution. Investors are here to earn money first and assist you second, regardless of how they present themselves.
Inexperienced entrepreneurs often err in appraising the value of their app idea. It’s essential to remember that valuation is not static; it fluctuates. While negotiating, have a baseline price in mind, but focus also on key aspects such as partnerships, equity in the company, and royalty rates. These elements can be pivotal in closing a deal. But, this all follows only after you’ve made them eager to invest in your app. To achieve that, you need to deliver the most convincing presentation imaginable.
How Much for Your App Idea?
Now that you understand the essentials of selling an app idea, the next big question is: how much is your app idea worth? Determining its value is crucial and involves multiple factors such as market demand, unique features, and potential competition. Assessing market demand requires a thorough analysis of current trends, user needs, and the overall interest in similar apps. Unique features can set your app apart, making it more appealing to potential buyers or investors. Additionally, understanding potential competition helps in positioning your app strategically to stand out in a crowded market.
This is an area that still requires thorough exploration and assessment, often involving detailed market research and financial forecasting. Market research helps in identifying target audiences, user behaviors, and preferences, while financial forecasting can project potential revenue and profitability, providing a clearer picture of your app’s value.
That’s all for today’s guide. If you’re looking for further assistance on where to begin with your app idea, feel free to reach out to our expert sales team. They are ready to provide you with the guidance you need to embark on your venture successfully. Our team can offer personalized advice and detailed strategies to help you navigate the complex landscape of app development and sales, including tips on pitching your idea to investors, optimizing your app for user engagement, and planning for long-term growth. Whether you’re a first-time developer or an experienced entrepreneur, our experts are here to support you every step of the way.
Important: Groundbreaking 105+ Best App Ideas to Reshape the World
How can iTechnolabs help you to build an App Idea?
iTechnolabs is a leading app development company that specializes in turning ideas into successful mobile applications. We have a team of experienced professionals who can guide and assist you in every stage of the app development process.
Firstly, we offer IT consultation services to help you refine your app idea and make it more marketable. Our experts will conduct thorough research to understand your target audience, analyze market trends, and identify potential competition. This will give you a better understanding of your app’s potential and how to position it for success.
- Initial Consultation: Our experts will work closely with you to understand your vision and brainstorm ideas to make your app concept more marketable. This includes discussing your goals, identifying key features, and aligning our strategies with your business objectives.
- Market Research: We conduct comprehensive market research to identify your target audience, analyze market trends, and assess the competition. This involves in-depth surveys, focus groups, and data analytics to ensure your app meets market demands.
- Roadmap Development: We create a detailed roadmap outlining every step of the app development process, from initial concept to launch. This roadmap includes timelines, resource allocation, and milestone tracking to ensure timely and efficient project completion.
- UI/UX Design: Our team of designers ensures that your app is not only functional but also visually appealing and user-friendly. We incorporate the latest design trends and user feedback to create an intuitive interface that enhances user engagement.
- Prototyping: We develop prototypes to give you a tangible feel of your app, allowing for adjustments before full-scale development begins. These prototypes are interactive, allowing you to test and refine features and functionalities early in the development cycle.
- Development: Our skilled developers use the latest technologies to build a high-quality, scalable, and secure app. We follow best coding practices and employ agile methodologies to ensure flexibility and adaptability throughout the development process.
Conclusion:
With our comprehensive approach to startup app development, we ensure that your app concept is not only marketable but also successful in achieving your business objectives. Our team works closely with you to understand your goals and align our strategies to meet them. From market research and roadmap planning to design, prototyping, and development, we offer end-to-end solutions for a seamless app development experience.
FAQs for How to Sell an Idea for an App
1) How Much Is an App Idea Worth?
The worth of an app idea largely hinges on the execution. If you don’t act on the idea, its value remains at $0. However, if you assemble a talented team and work diligently to bring the idea to life, it could reach a million-dollar value, exemplified by successful apps like Angry Birds, Tinder, and Uber.
2) How Do I Sell an App Idea to Google?
Step 1: Launch Google Chrome on your device.
Step 2: Navigate to the Google proposal submission page.
Step 3: Select the appropriate category for your idea from the available options.
Step 4: Complete the form by entering your name, email address, website URL, a description of your company, and details of your proposal.
Step 5: Press the “Submit” button to send your proposal.
This method provides a straightforward way to pitch your idea to Google, but there are other potential avenues as well.
3) How Do Apps Make Money?
There are several ways to monetize your app. We’ve outlined the key methods below and discussed them in detail in the blog:
Opt for a Paid App Model – Charge a one-time fee for users to download and access your app. This method ensures you receive revenue upfront.
Implement a Pro Version – Offer a basic version for free while charging for an enhanced, feature-rich variant. This strategy can attract a broader user base while monetizing dedicated users.
Integrate In-App Advertising – Display ads within your app to generate revenue. This approach can be particularly effective if your app has a large user base and high engagement.
Use In-App Purchases – Allow users to buy additional features, content, or services within the app. This model is highly popular among gaming apps and apps offering exclusive content.
Sell User Data (Legally) – If done in compliance with data privacy laws, selling anonymized user data can be a lucrative revenue stream.
Sell Virtual Goods – Offer virtual items for purchase within the app. This strategy has proven successful in many gaming and social apps, providing users with enhanced experiences or status symbols.
4) How Do I Protect My App Idea?
Share your app idea and related information only with a select group of trusted individuals. Even when dealing with those people, as well as potential investors, it’s essential to have them sign a Non-Disclosure Agreement (NDA) before any discussions take place. Additionally, consider building a prototype or Minimum Viable Product (MVP) before presenting it to potential investors. Choosing your professional relationships wisely is paramount, particularly when assembling the team that will bring your app to life.
5) How Do I Start My Own App?
To start your own app, first conduct thorough market research to identify your target audience and competitors, and then locate an ideal app development company. Begin the design process by sketching your app’s concept on paper. Collaborate with designers to transform these sketches into detailed mockups. Once the design is finalized, proceed with both the frontend and backend development of the app. Perform Quality Assurance (QA) tests to ensure optimal performance and continually refine the app as needed. Launch your app on platforms such as Apple’s App Store, Google Play Store, or any other suitable third-party app store. Effectively market your app to your target audience through various digital channels to reach the right users. Finally, consistently enhance your app based on user feedback and regularly release new updates.
6) Where can I sell app ideas?
There are many websites and platforms that allow people to sell their app ideas. Here is a list of some excellent potential sources for pitching your app concepts to investors:
- Startup Platforms
- Business Angel Networks
- Crowdfunding Platforms
- Business Incubators & Accelerators
- Professional Social Networks
- Private Equity Markets
- Bank Loans or Venture Capital
7) Who Is the Richest App Developer?
According to studies, Nick D’Aloisio is recognized as the wealthiest app developer. He independently created Summly, an application that can condense large volumes of text into concise summaries of 1000, 500, or 140 characters. The app gained significant attention when Apple featured it on the App Store. This exposure was instrumental in helping him secure substantial funding for additional app development endeavors. Today, D’Aloisio has amassed considerable wealth through his innovative efforts in the tech industry.
