App Selling FAQ: 15 Common Questions Answered

Selling your mobile app can be a straightforward process if you’re well-prepared. Here’s what you need to know:

Preparation is key: Organize legal documents (ownership proof, tax records, transfer agreements) and ensure your app runs smoothly across devices.
Show financial transparency: Provide detailed revenue data like monthly recurring revenue (MRR), user analytics, and financial projections.
Price it right: Base your app’s value on revenue, user engagement, growth potential, and market demand. Use comparable sales and leave room for negotiation.
List effectively: Platforms like CatMRR require polished listings, including revenue verification and high-quality visuals.
Ownership transfer: Follow platform-specific steps for transferring app ownership securely (e.g., Apple App Store, Google Play).
Secure payments: Use reliable payment methods like escrow or wire transfers, and consult a tax expert for reporting.

How to sell your mobile app

Getting Your App Ready for Sale

Before you list your app for sale, there’s some groundwork to cover. From sorting out legal documents to ensuring your app runs smoothly, this preparation phase can make or break the sale process. A well-prepared app not only speeds up negotiations but also builds trust with potential buyers.

Legal Documents You Need

Start with proof of ownership. Buyers need to see clear evidence that you own the app and its intellectual property - this includes trademarks, copyrights, and patents. If you’ve worked with contractors or co-founders, ensure you have signed agreements confirming ownership rights.

Next, gather your tax records. Buyers often want to review business tax returns from the past two to three years. Keep these records organized by year, along with any 1099 forms from app stores, to verify your reported revenue and establish financial transparency.

Prepare transfer agreements to make negotiations smoother. Draft an asset purchase agreement detailing what’s included in the sale, such as source code, user data, marketing materials, and app store accounts. It’s wise to consult a business attorney to address liability concerns and include non-compete clauses.

If your app operates under an LLC or corporation, ensure your business registration documents are up-to-date. Having accurate and current records makes the legal transfer process much cleaner.

Once your legal paperwork is sorted, shift your focus to the technical side. Ensuring your app meets technical standards not only supports a seamless handover but also reassures buyers during their evaluation.

Technical Setup Requirements

Testing your app’s cross-platform functionality is crucial. Make sure it works smoothly across different devices, operating systems, and screen sizes. Be upfront about any bugs or limitations - this transparency can help build trust with buyers.

Your source code organization matters, too. Clean up your codebase by removing unused files, adding clear comments, and including a README file. This document should explain the app’s architecture, dependencies, and build processes. Buyers often assess code quality to determine how much work will be needed post-purchase.

If your app has backend components, pay attention to database and server documentation. Provide detailed information about server architecture, database schemas, API endpoints, and instructions for transferring hosting accounts. This makes the transition process smoother for the buyer.

Don’t forget to organize your app store assets. Gather everything from screenshots and promotional videos to app descriptions and A/B test data that show off your marketing strategies. These materials can highlight the app’s potential for future growth.

Revenue Data Preparation

Accurate and detailed revenue data is key to determining your app’s value. Start by tracking monthly recurring revenue (MRR). Compile at least 12 months of data, including subscription tiers, acquisition costs, churn rates, and lifetime value. Buyers use this information to estimate future earnings and set a fair purchase price.

Use app store analytics to back up your revenue claims. Export reports from App Store Connect or Google Play Console that show downloads, revenue, and user engagement. If your app has a global audience, include geographic data - apps with international appeal often attract higher offers.

Include transaction reports from payment processors like Stripe or PayPal. These records should align with your claimed revenue and provide additional verification for buyers.

Your user analytics are just as important. Metrics like daily active users, session lengths, retention rates, and feature usage offer a snapshot of your app’s performance. Tools like Google Analytics or Mixpanel can help you compile this data. Strong engagement metrics often justify a higher asking price, especially for apps in competitive markets.

Finally, prepare financial projections to showcase your app’s growth potential. Use historical data to create simple spreadsheets that highlight revenue trends, growth rates, and any seasonal patterns. This gives buyers a clearer picture of the app’s future prospects.

How to Price Your App

Once you've prepared your app's documentation and gathered performance data, the next critical step is setting the right price. Your pricing strategy can make the difference between a quick sale and a listing that lingers. Price too high, and buyers may lose interest. Price too low, and you risk undervaluing your hard work. Striking the right balance means understanding what drives your app's value and using that information to set a price that's both competitive and fair.

What Impacts Your App's Value

Several factors influence how much your app is worth:

Monthly revenue: This is often the biggest driver of valuation.
User base size and engagement: Apps with a large number of active users are more appealing to buyers.
Performance consistency and growth: Buyers are drawn to apps with a proven track record of steady performance.
App category and market demand: Certain categories might fetch higher prices based on current trends.
Technical quality: Clean, efficient code and minimal maintenance needs add to an app's appeal, while apps requiring frequent updates might see lower offers.
App store ratings and reviews: Positive feedback builds buyer confidence.
Diverse revenue streams: Apps with income from multiple sources in premium markets are seen as less risky investments.

By evaluating these factors, you can create a pricing strategy that maximizes the value of your app.

Finding the Right Price

Here are some approaches to consider when pricing your app:

Revenue-based valuation: Subscription-based apps are often priced using revenue multiples, where average monthly revenue, growth rates, and market position are key. For one-time purchase apps, annual revenue might guide the valuation.
Asset-based pricing: If your app offers unique intellectual property, valuable user data, or innovative technology, this method might be suitable.
Comparable sales research: Look at recent sales of similar apps to get a realistic benchmark for your pricing.
Auction-style pricing: If you have multiple interested buyers, letting them compete can help drive up the final price.
Market conditions and urgency: If you need a quick sale, pricing slightly below market value can attract offers faster. On the flip side, a strong market might allow for a higher asking price.
Negotiation buffer: Set your price slightly above your minimum acceptable figure to leave room for negotiation.

How to List Your App on CatMRR

CatMRR

Once you've prepared all the necessary documentation, it's time to list your app on CatMRR. A well-thought-out listing not only attracts serious buyers but also builds trust by showcasing transparency. By preparing the required documents and setting a price, you ensure a smooth verification process and connect your app's valuation to buyer confidence.

Writing Your App Listing

Your app listing serves as the first impression for potential buyers, so make sure it's clear and professional. Include essential details like a support email and a website URL to establish credibility. Adding a privacy policy URL is also crucial to highlight your commitment to data protection.

To make your app stand out, include high-quality visual assets. Upload a 512x512 pixel app icon (under 5 MB) and a 1024x500 pixel feature graphic (under 5 MB) that showcases your app's key benefits. If you have a demo video, share it using a YouTube URL to give buyers an engaging preview of your app's functionality.

In the financial section, provide a transparent view of your revenue and performance metrics. Include details like monthly recurring revenue, subscriber counts, and any seasonal trends that might impact your app's performance. Buyers appreciate seeing consistent growth and understanding what drives your app's success.

Revenue Verification Process

After completing your app listing, CatMRR verifies your financial data to ensure accuracy. The platform uses a secure system that connects directly to RevenueCat via a read-only API token. This integration allows buyers to view your app's metrics without compromising your data, as it cannot be modified or deleted.

You remain in control of your data and can revoke access at any time. When submitting your revenue data through the RevenueCat API, include supporting documents like analytics screenshots, explanations for revenue spikes, and update logs. Typically, your listing will reflect the latest monthly recurring revenue and active subscription data within minutes, giving buyers up-to-date insights into your app's performance.

How to Increase Your Chances of Selling

Once you’ve nailed down proper preparation and pricing, the next step is to focus on performance and presentation. Making your app appealing to buyers requires a thoughtful approach. The goal is to show that your app is not just profitable but also well-maintained and ready for someone else to take the reins. By improving performance, crafting a compelling listing, and presenting your financials clearly, you can make the sale process smoother and more successful.

Improving App Performance Before Sale

A smooth-running app inspires buyer confidence and can justify a better valuation. Start by addressing the basics: fix any lingering bugs, speed up load times, and ensure the app performs seamlessly across devices.

Stay on top of market trends by updating features to match what users currently expect. Buyers want to see that the app is actively maintained and won’t require immediate technical fixes after the purchase.

If there are recurring user complaints, resolve them and roll out a stability update well before listing your app. Leaving issues unresolved can hurt the app’s perceived value.

Keep a log of recent updates to showcase your ongoing maintenance efforts. Highlight key integrations and be upfront about any technical debt, so buyers know exactly what they’re getting.

Promoting Your App Listing

Once your app is in top shape, it’s time to focus on marketing its strengths. Use verified metrics like Monthly Recurring Revenue (MRR) trends and growth stats to craft a compelling story about your app’s potential. Highlight stable growth and the factors driving revenue.

Create a growth story that outlines your app’s journey. Point out milestones like major feature launches, successful marketing campaigns, or partnerships that boosted user acquisition and revenue. This narrative helps buyers see both the app’s current value and its future possibilities.

If your app ranks well on CatMRR’s revenue leaderboard, use that to your advantage. High-ranking apps naturally attract more attention. Also, ensure your listing includes polished visual assets, such as a 512x512 pixel app icon and a 1024x500 pixel feature graphic, to grab attention immediately.

Timing matters too. If your app has strong seasonal performance, consider listing it just before its peak season. This allows buyers to see its full revenue potential in action.

Presenting Your Revenue Numbers

Clear financials are crucial to building trust with potential buyers. Provide consistent MRR data, along with key metrics like Average Revenue Per User (ARPU), subscriber numbers, churn rates, and lifetime value. These figures paint a picture of your app’s stability and user retention.

For an added layer of transparency, use tools like RevenueCat to provide real-time, verifiable financial data. This can go a long way in reassuring buyers.

If there are any irregularities in your revenue, explain them clearly. Buyers need to understand what’s typical performance and what’s an outlier. Transparency here can help avoid misunderstandings and build confidence in the deal.

Completing the Sale Process

With your preparation and pricing strategies in place, the final steps to complete the sale involve transferring ownership and ensuring secure payment. Here's how to navigate these critical stages.

Transferring App Ownership

The process for transferring app ownership depends on the platform where your app is listed, as each app store has its own rules and procedures.

For the Apple App Store, ownership transfers are managed through App Store Connect. Before initiating the transfer, ensure both accounts are active, proprietary entitlements are disabled, signed agreements are complete, TestFlight is turned off, and Xcode Cloud data is removed. Always back up app data beforehand.

If your app includes auto-renewable subscriptions, generate an app-specific shared secret and share it with the buyer before starting the process. To transfer the app, log in to App Store Connect as the Account Holder, navigate to your app under "App Information", and select "Transfer App." You’ll need the buyer's Apple Account and Team ID to finalize the request.

For the Google Play Store, both the seller's and buyer's developer accounts must be active, registered, and compliant with Google’s policies. Before transferring, download bulk export, payout, and earnings reports for your records. The buyer will need their registration transaction ID, which they can find in their developer registration fee email or Google Payments activity. To initiate the transfer, go to "Settings" > "App Transfers" > "Transfer Apps" in the Google Play Console, and submit the required form for review.

The Amazon Appstore has a different approach. Amazon generally discourages app transfers due to potential issues like API functionality loss or signature mismatches. If a transfer is unavoidable, you’ll need to contact Amazon support directly through the "Contact Us" form in your developer account. In many cases, Amazon recommends adding users to your existing developer organization instead.

Beyond the official app store procedures, you’ll need to arrange a direct exchange of all relevant code and assets with the buyer. This includes the source code, development files, user databases, analytics access, intellectual property rights, domain names, and social media accounts. A detailed handover document outlining access credentials, deployment instructions, and maintenance guidelines can make this process much smoother.

"The difference between a smooth app sale and a legal nightmare often comes down to the quality and completeness of your documentation." - Glance

Once the transfer is complete, the next step is to secure and verify payment.

Handling Payment and Money Transfer

When it comes to payment, prioritize secure methods like ACH, wire transfers, or escrow services to ensure the transaction is protected.

Make sure the funds are fully cleared before transferring ownership. Avoid relying on preliminary payment notifications or screenshots, as these can be misleading. Establish a clear timeline for payment receipt and ownership transfer. Keep in mind that Apple's transfer process can take anywhere from a few days to several weeks, while Google Play transfers are typically completed within 48 hours. Amazon transfers, when approved, may take longer due to manual reviews.

Maintain detailed records of all financial transactions and communications throughout the process. These records are not only useful for resolving potential disputes but are also important for tax purposes. Stay in regular contact with the buyer during the transfer period to provide updates and address any questions they may have.

Lastly, don’t overlook the tax implications of your sale. App sales are often treated as capital gains, so consult a tax professional to ensure you have the necessary documentation to report the transaction correctly.

Summary: Main Points for Selling Apps

Selling your mobile app successfully requires careful planning and thorough documentation. The key to a profitable sale begins with accurate revenue tracking, which not only paints a clear financial picture but also builds trust with potential buyers.

Your app's revenue trends - whether growing, stable, or declining - are crucial in determining its market value. By understanding these trends, you can strategically time the sale to align with peak performance periods. Make sure to document all revenue streams, including in-app purchases and refund processes, to present a complete financial overview. These financial details, combined with technical and legal readiness, create a strong foundation for a successful sale.

Legal documentation is a must. Ensuring that your terms of service, privacy policy, and intellectual property rights are up-to-date minimizes potential delays and fosters buyer confidence. On the technical side, your app should run smoothly, with any bugs resolved and all source code and development files well-organized for a seamless handover.

When it comes to pricing, your strategy should reflect the app's true market value. Consider factors like revenue multiples, growth potential, and market demand. Researching comparable app sales and accounting for technical complexity can help you set a competitive yet realistic price.

Using tools like CatMRR can further validate your app's value. CatMRR provides verified financial data and a reliable marketplace infrastructure, making transactions more transparent. With its RevenueCat API integration, buyers gain access to detailed metrics like monthly recurring revenue and subscriber counts, giving them the confidence to make informed decisions.

Lastly, presentation is everything. A polished listing with clear revenue documentation, professional screenshots, and honest performance metrics can attract serious buyers and even boost your app's sale price.