Circumstances vary, and yours will determine your appâ€™s final verdict. Perhaps your app pales in comparison to its most relevant competitor; perhaps it still generates enough revenue to stay ahead of the rest. With that in mind, if youâ€™re trying to sell your app to another appreneur, then perhaps a slight devaluation of your appâ€™s worth is justifiable. In this blog let\’s look at how much your app is worth?
In any case, many websites offer their own unique algorithms that function in-full or in-part to estimate a published appâ€™s accumulated value. Most appreneurs base their appâ€™s value on these websites, and oftentimes reference their unbiased output before buying and selling apps
Utilizing your new set of monthly-collected data, apply the previously mentioned formula [total users or downloads/total revenue] to each month of the year during which your app had performed. Now average together each monthâ€™s revenue per user to determine your appâ€™s ARPU.
Growth prospects: if your app has grown consistently and is still on an upward trajectory, and has plenty of opportunities for future growth, you could expect a higher multiple
Genre/niche: some are considered by buyers to be more valuable than others, based on competition, regulation, growth prospects (again) and other factors
Proven marketing strategy: how do you market your app? Is that sustainable? What opportunities are there for a buyer to invest and grow customer acquisition even further?
Time commitment: how much time do you spend on your app? (this oneâ€™s a biggie amongst our buyers)
Use your ARPU to determine your appâ€™s value. Estimate and add to your total users a prospective number of individuals that you are anticipating to acquire, perhaps based on current trends in user acquisition rates. Now take your new total of users and multiply that number by your ARPU. The newly produced number can stand as a good estimation for the total value of your app.