The Story
Lotts has made $500,000 by building and selling 4 mobile apps. Unlike most founders who build for passive income, Lotts builds with the explicit goal of selling. Each app is designed from day one to be attractive to buyers.
The app flipping strategy is different from traditional indie hacking. Instead of trying to build a lifestyle business, you're building an asset that someone else will want to buy. This changes everything - from feature selection to growth strategy to how you document your business.
Lotts discovered that many buyers are looking for apps with proven revenue, clean code, and growth potential. They don't want to build from scratch - they want to buy something that's already working and scale it further.
The key insight: apps sell for 2-4x annual revenue. So an app making $10K/month could sell for $240K-$480K. Build a few of these, and you're looking at life-changing money.
Key Insights
The Build-to-Flip Mindset
- •Design for exit from day one
- •Document everything - buyers want clean handoffs
- •Focus on metrics that matter to buyers (MRR, churn, growth rate)
- •Keep the tech stack simple and maintainable
What Buyers Look For
- •Consistent monthly revenue (not one-time spikes)
- •Low owner involvement (automated or outsourced)
- •Growth potential (untapped markets or features)
- •Clean codebase and documentation
- •Transferable assets (no personal brand dependency)
Valuation Multiples
- •Apps typically sell for 2-4x annual revenue
- •Higher multiples for: growing revenue, low churn, automated operations
- •Lower multiples for: declining revenue, high owner involvement, technical debt
Build-to-Flip Playbook
- •Choose a proven niche - Don't innovate on the idea, innovate on execution
- •Build lean - Minimum features, maximum value
- •Document from day one - SOPs, tech docs, financial records
- •Automate operations - Buyers want hands-off businesses
- •Grow to $5-10K MRR - Sweet spot for individual buyers
- •List on marketplaces - Acquire.com, Flippa, MicroAcquire
- •Negotiate and close - Be prepared for due diligence
Where to Sell Apps
- •Acquire.com (best for SaaS)
- •Flippa (broad marketplace)
- •MicroAcquire (startup-focused)
- •Direct outreach to strategic buyers
- •Indie hacker communities
Resources
- •Follow Lotts: https://x.com/LottsApps