How to profit from an iPhone app idea?

[HenkHolland]

A friend of mine has an idea for a nice iPhone app. It is not a killer idea, but it is good and, if developed and marketed, should generate a decent revenue stream.
My friend is not interested in becoming an entrepreneur and is looking for a company that is interested in buying or licensing the idea.
Can anybody recommend such a company and what is your advice with respect to protecting the idea?

 

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[SHHDlove]

This seems like a hard one... The thing that gets me about your post is that your friend "is not interested in being an entrepreneur". That's what this website is about! Lots of people have great ideas. Shit, I have had dozens of ideas that other people have taken and made a good fortune marketing and using. Do you know how much money I have made off their ideas? $0.00! Diddley shit. That's because ideas don't sell. If you must, I would highly recommend finding someway to 'prototype' the idea (like making the product first yourself), then taking it to some app developers and seeing if they like it. But with apps, why not just produce it yourself?

 

[HenkHolland]

Thanks for your reply.
My friend is a dedicated civil servant and, how strange it may sound, is really not interested in having the app developed at his own expense.

Yes, I know that ideas as such usually aren't worth anything, but I have a feeling that app ideas may be one of the exceptions to this.
I hope that there are fastlaners here on the forum who have experience with outlicensing their app idea(s) to app development companies. That's why I raised the question here.

 

[jbuckingham]

buy it from him for a percentage of the sales generated or better, at a flat fee for the idea..

 

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[HenkHolland]

Thanks for the suggestion, J.
However, I have learned my lesson as to doing business with friends. I don't do any business transaction with friends anymore.
In addition, I myself am not intetested the app business. I'm too busy with other lucrative projects.

 

[SHHDlove]

Thanks for the suggestion, J.
In addition, I myself am not intetested the app business. I'm too busy with other lucrative projects.

Then I believe this idea is dead in the water. My suggestion is to write the idea in a journal and when you're looking for a new business, use it as a jumping off point.

 

[mcjon77]

Yes, I know that ideas as such usually aren't worth anything, but I have a feeling that app ideas may be one of the exceptions to this.
I hope that there are fastlaners here on the forum who have experience with outlicensing their app idea(s) to app development companies. That's why I raised the question here.

The biggest problem is that it is just an idea. Assuming your friend is not a programmer, he has absolutely nothing right now. Think about it this way, the moment he told you all about his idea YOU had the exact same thing in your possession as he did. YOU could just as easily get this developed as him. In effect, he is no longer necessary.

So the question is how could you go about selling it without developing ANYTHING yourself. Lets say that I am in the market for a good app idea. You offer to sell me your friend's idea. As soon as you tell me what his idea is I don't need to buy it from you because you GAVE IT TO ME. I certainly won't buy the idea before I know what it is.

So now the thought is signing some kind of non-compete or non-disclosure agreement. MAYBE someone would do that without knowing anything about the idea first, but I personally wouldn't bother. I am going to start developing apps later this year and I have a list of app ideas that folks have given me for free. Also, a HUGE amount of ideas that people think are original really are not. Ideas are a dime a dozen, execution is everything.

My suggestion is to get a basic prototype made up. A little time with HTML and you should at least be able to create a mockup. From there, you can decided if it is worth the trouble having it developed and marketed.

 

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[darkjediii]

Check out MJ's vid on this subject:

I Had That Idea! Oh Yea? STFU!

 

[HenkHolland]

Thanks mcjon and darkjediii.

Although I am fully aware of the fact that normally ideas are worthless, I dare to argue that with respect to iPhone apps the idea is everything. Once the idea is there actually developing the app is a piece of cake for somebody skilled in the art.

So, I can imagine that there are companies buying or licensing app ideas. As a matter of fact I googled a few days back and saw a few sites of companies that claim to buy/license app ideas. The reason I posted the question here, is the fact that I hoped to find at least one person on this forum who could give feedback based on his/her own experience.

 

[fellipe]

forget about licensing an idea.

You tell them the idea -> They answer they are not interested -> the app hits appstore in a couple of months.

One thing I've learnt thru MJ DeMarco's book and this forum is that IDEAS are USELESS.

 

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[fellipe]

by the way you gave me an idea! Will create a 'buy your idea' company and apply my above plan. Easy way to get a lot of ideas

You understand what I mean now?

 

[darkjediii]

I think any legitimate company that you approach with selling an idea to the conversation would go like this:


So you go to a company that develop and sell iphone apps -

you: "I have an awesome idea for an iphone app"
them: "have you released an app before?"
you: "no, but I'd like you to sign this NDA because I don't want you to steal my idea"
them: "sorry, we don't sign NDAs because your idea might be something we are already currently developing."

 

[HenkHolland]

them: "sorry, we don't sign NDAs because your idea might be something we are already currently developing."

That is quite true for bigger (publicly traded) companies, but not necessarily for smaller companies.
I have some experience selling two of my own ideas (in my field of expertise, applied physics).
What I am looking for is someone who has actual experience selling an app idea and who can suggest a company my friend can approach. If they don't want to sign an NDA my friend can move on.

I have learned that in order to know you should ask. So, you should ask a targeted company if they are prepared to sign an NDA for an app idea.
Not trying something based on a presumption is not exactly a fastlane attitude.
In Dutch we have the following saying: "You already have a no and you have a chance to get to a yes by asking".

 

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[Motavi]

I would get it developed. If you are interested, PM me and we can work something out. I have 2 apps on the Apple store now working on more!

 

[speedyexe]

My friend is a iphone app developer if youre interested just send me PM, send me also detailed specification with use case diagram and I will contact with him and will tell you how much for this.