Buy apps that already get organic downloads but earn too little or skip a channel

Steve Young… I started making apps and I was like, okay, this best the best one I have is $3,000. And you know, the funny thing was, this app that I acquired, they followed my YouTube channel, they copied my exact strategy, that ASO strategy I just kind of showed you. I knew that keyword existed from a couple of years ago. So when I I was talking to Evelyn and she, you know, she was trying to work a deal with me, and she's like showing me all these apps.

Steve YoungAnd I was like, "I want I want to talk to this one." I was like, "They did half a million in this keyword I knew about 2 years ago?" And I looked at where they're ranking. I was like, "Oh, my god, they're number one." And dude, I was just too lazy. It's in the health and fitness space, so I was like, "I don't want to hire a trainer." And I'm like, "This is too much work." And so I stopped. I didn't I didn't build it. But then they built it and I was like, "Dude, I'm not going to let this opportunity go." And so, yeah, for me, like the best purchases I bought another one and we paid 18,000, and it flopped. Like it So the best purchases I've made are the ones that have distribution, but are like either undermonetized or I can find a different distribution.

Steve YoungSo the reason why I bought this was like, I saw the other keywords that we can go after. So they're they're still maximizing. They they're doing good on the ASO, but they can do even more. So I was like, okay, there's more keywords and more traffic that I can go after. And then secondly, they haven't even thought about Meta. And it's targeting older audience, where I'm like, okay, Meta could work better for older audiences, cuz then I'm not …

Steve Young… cuz it's a 10-year loan, to figure the rest out, or I can just pay it back free. So I think that's an interesting model for those who are just trying to come in, but the the elements of a like successful acquisition has always been distribution is embedded in it. If it's not in there, and I prefer organic, I talked to other acquisition folks that I'm like, okay, they do look for the same thing, because then I can add on to something else, right?

Steve YoungIf you fully If it's paid, then it's like it's a money-eating machine. [laughter] Like, I'm like, "Oh, isn't it, right? I got to keep paid going, otherwise the sales go down." So if there's organic already in there, great. And so now we're trying to build more apps using the same exact strategy, and I'm trying not to be lazy anymore, Joseph. I'm like, "Eff it. I know these keywords exist. I'm not going to be lazy anymore. I'm going to find a trainer, build the app."

Joseph ChoiIt feels like real estate. [laughter] You're like buying buying a house, and with the tenants like a pipeline of tenants like already paying you the MRR, and you you just profit instantly. Uh, that's that's a interesting model. Do you know other app acquirers? Like do do people tend to do the loan method, or is there like seller financing?