Budget, Cost, Investment, and Revenue
The most commonly asked questions regarding mobile apps are
“How can we make money with them?”
“How much do I have to spend to get a good app that can earn?”
“How to get a mobile app developed with a low budget?”
Or “Where should I start?”
All these questions will be answered below. Also, we will discuss briefly ‘Custom mobile applications for businesses at the end’. Read on to find out.
So, without creating any more curiosity, let’s find about mobile applications development costs.
Investment and Costs
The first thing that comes to our mind when talking about a mobile app’s development is how much do we need to invest initially and what are all the hidden costs? Basically how much money do I need, to start earning through a Mobile application?
The simple answer is – An app can cost you $0 to $300 000. If you are smart enough, an app can come to you for free. It doesn’t mean that those who pay hundreds of thousands of dollars to a developer are not smart. The difference is of time and skills. If you have a limited budget or no capital at all then you will have to learn the app designing process overall. It is not impossible but can take up to a couple of years till you will have your first app ready to earn.
So, you either invest your time or money, that’s why they say – Time is Money.
An app like UBER with an annual turnover of about $14 Billion, can cost you somewhere between $250 000 to $400 000. The ratio to the initial investment to the active annual revenue is like 35000 times. Mind = Blown
But don’t be all hyped about it yet, there is more to it. An app like UBER is not only going to cost you the amount that we just quoted, it’s going to require a team of best of the best since the beginning. No compromise on the skills. Also, it is going to take a significant amount of time for your app to reach that level. In some cases, it can take 5 years before the first income.
This was a giant example, we know. Not everyone wants to make such a big app and manage that huge business. Many people also want to find out about a medium-sized app that can be developed on a minimal budget and within controlled time restraint.
Alright, so here is how you can find out:
Because the cost of an app depends on various factors, we are going to list down all the important factors first, and then try to break down all the costs step by step.
Important Factors And Cost For App Development
1. Type of app
There are hundreds of types of mobile applications and you need to identify what type and category your app falls in. An app can be a mobile game, a simple business tool, an educational aid, a social networking platform, a book reading app, pictures editing, video editing, and many more. You can have a very good idea of the total investment just by finalizing the app’s niche. For example, if an app that you are going to get is a game, it definitely is going to cost a lot – somewhere between $10,000 and $100 000 000 depending totally upon the game’s quality and size.
Will your app work on Android only, or iOS, or both? Cost varies with the platforms greatly. We all know that an app built for Android is going to cost you significantly less than an app of the same quality and specifications for iOS. A simpler breakdown for both platforms is stated as follows:
For registering as an Android app developer, there is a onetime fee and that is $25 – Really economical.
For a developer account at App Store, they charge $99 annually – still not that expensive, but there is a huge marginal difference between both the platforms.
Similarly, Google play store gives you a lot of flexibility in payments and most of the charges are onetime, whereas App store’s different charges are recurring.
3. Application Architecture
We are including design, the number of pages, infrastructure, and features all under Application Architecture. Depending upon the above-mentioned elements of the app’s architecture, costs can vary by a great margin. For example, you want your app to look something like Instagram and have similar features then definitely it is going to cost you A LOT. But a minimal design with a limited number of pages and average infrastructure can fall in a moderate range.
Alright, that’s quite a lot of information to process. Now sit back and take your time gauging your future app according to the given parameters and specifications.
Meanwhile, we are going to find out what a Custom mobile application is and how it can benefit a business.
4. Custom Mobile App
A professional mobile app development company along with generic applications also offers to design a custom mobile application. For instance, Sky Potential is a professional app development company that offers a wide range of application types from generic to custom; they can design all sorts of applications. But what is a custom app and who needs it?
Just like an ERP system, or an MIS database, a business can have its custom app that will only be accessible by the employees of that particular company. This custom app can have all the details of the employees, projects lists, upcoming holidays, and much more. Also, team collaboration can be made sure with a custom mobile app.
When hiring resource for the company, interviews or assessments can be smartly managed through that same app. Candidates will no longer have to wait for weeks to find out if they are being considered or not, a custom app can track HR decisions and the potential candidate can be informed via an automated email.
A custom app development company can quote much higher as compared to a generic one because of its native structure and specific APIs. But what a custom app can do, cannot be done by any other app.