Hi HN community,
I need some advice from the community on how to evaluate the price for the source of my iOS app. I have received an inquiry by a potential buye: he would like to buy the source code of one of my iOS app since my app fit really well the business niche he has already started a few years back.
My iOS app is free in the AppStore but generate through different manner around $300 monthly. I know it's not a huge amount but I am doing iOS app development on my free time to be up to date with the SDK, and get some passive income. I have created an LLC structure for my iOS development.
Personally I don't mind selling the source code -including the associate domain name- but this is the first time that I have been approached for selling the full app.
The app has been in the store for a few months and revenue is increasing slowly but surely. Numbers of download is following the same pattern and there is no particular reason for the pattern to change. The app is on small nice market that most likely not going away anytime soon. Sorry I can't be more specific about it.
The main advantage of selling the source code/domain is that most likely I will re-invest it by hiring some contractors / UI designer to get some other iOS app ideas off the ground. Thus a good bump in the revenue will be nice.
But what will be the best selling price: should I set the price based on the potential loss of revenue for 1 year ? 2 years ? more ? Obviously I have to keep in mind that the buyer could invest his money to duplicate the features of my app but he did mention that he'd rather buy the existing one since it's already in the Store and thus 'validated' by Apple review team.
Thank for any advices/suggestions and things to watch out for such transaction.
