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Why is Mobile App Flipping Profitable?
While mobile app flipping may not be publically acclaimed, it is an accepted fact that it has taken over the market to the extent that it is often possible to make large amounts of profit through it. How does this happen, and what are the factors that have made the process so popular?
Costs of an app framework – With app flipping, an existing app can be spun into a new one by using an app framework, which developers refer to as the source code. When you compare the costs involved in this, the price of a source code is less than a fraction of the money needed to develop an original app from scratch. The only effort need to expend is that needed to browse and select the best source code, and use it in the best way possible.
Higher Returns on Investment – If you have ever created an app or planned to do so, you would be familiar with the costs and effort that goes into it. Naturally, if you are not a professional developer, you will have to hire someone to create your application from scratch. If you are one or believe that you can create a basic app, you will still have to spend money on the creation process and then the marketing. This is especially true if your app caters to a new idea that needs to be introduced to smartphone users. With app flipping, however, most of these costs are eliminated. For one, the money expended on developers and designers is lower, since you can already provide them with the detailed idea as well as the framework, with an outline of the additional features or polishing needed. What’s more is that marketing and advertising may be unneeded, since your application will automatically be categorized with other similar ones in the area, and reach the potential customers automatically. With the low costs needed to complete the process, even an initially low profit will generate higher returns on investment than creating an app from scratch.
For instance, a developer spends $5,000 on creating a game from scratch and earns $40 a day from it. With much effort and marketing, the returns may increase to $60. On the other hand, another developer may take the same game, buy a source code worth $500 and spend an additional $500 on improving the app. The costs of this second developer will be a mere $1,000 compared to the original $5,000 and, with more or less the same profits, the ROI will tend to be much higher and a lot more rewarding.
Lesser time and effort – When an app is created, the final product is not only defined by the costs that go into it, but also other factors that make it existent. In fact, even coming up with a unique initial idea takes more effort than you may imagine. Think of an idea for a mobile app right now. It is highly probably that several apps on the same idea have already been created and successfully sold. If you set out to create a unique app, you will realize that the endeavor is almost unachievable. The idea way to go on about making profits, therefore, is through minimizing this effort and simply expanding and improving on an additional app. Naturally, when you spend merely a couple of days on creating an application as compared to months of futile hard work, the first $1,000 will be worth a lot more.
Countless apps – App flipping does not cater to one app being created out of another. You can, in fact, create dozens of apps out of that one. This is extremely beneficial for new developers, who can keep re-skinning an app at extremely low costs until they get the exact product they were looking for. A minor initial investment can, therefore, turn into a huge business opportunity.