Developing a cutting-edge application can be costly and might become even more expensive if you do not consider the hidden financial needs. That is why so many start-ups and companies cannot stay ahead of the competition — they drown in budget overruns and delays caused by inadequate financial planning.
If you plan to create your own application and are concerned about the costs, this article will serve as your app development cost calculator. Here, you will find a breakdown of the not-so-obvious expenses you will have to incur to deliver the best product.
This one seems like no big deal, as the price for getting into the app store is relatively low. For example, Apple charges $99 per year, which comes with benefits like tools and beta releases. For companies that want to distribute the application explicitly among their employees, the fee is $299 per year. The transaction fee for the Apple store is 15%.
On the other hand, Google Play market charges a one-time fee of $25. Paid applications get charged a 30% transaction fee, while transactions from subscriptions start at 30% during the first year on the market and then decrease to 15%.
These numbers seem insignificant for innovative tech companies. However, there is a twist. You need to go through the approval stage to get onto those platforms. If your product does not meet the platform’s requirements, you would need to make some changes in coding or design, and these modifications might be expensive.
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The application should be tested across different devices, operating systems, and screen resolutions. Failure to do so may lead to unexpected issues and poor performance, which can result in negative feedback, decreased user engagement, and additional costs to fix.
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No matter how excellent and innovative your application is, it is still not enough to become famous. You need a lot of well-executed marketing to build brand awareness, attract customers, and boost your revenue. Effective marketing entails social media campaigns, email marketing, content marketing, and paid advertising.
As of late 2023, there were around 2.4 million apps in Google Play, most of which were abandoned, according to statistics. Why is that? The thing is, app development does not stop with the product’s release. It continues and requires constant user feedback monitoring, identifying new bugs and issues, and implementing necessary changes to enhance the user experience. Additionally, updating with emerging technologies and trends is essential to stay ahead of the competition and ensure the app remains relevant and valuable to its users. All of this, of course, costs money. Annually, the maintenance stage will cost you 20% of your whole budget dedicated to app development.
Building an application from scratch is almost impossible, so you must use third-party providers. They offer payment processing, customer support, data analytics, cloud services, and many others. The costs seem insignificant initially, but as your application and user base grow, so will the resources you need to allocate for this service.
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Now that you know about the pitfalls of app development, here are some strategies that will help you deliver the best product without extra expenses:
Developing an app can be challenging, with various intricate aspects to consider. One of the most crucial aspects that can catch you off guard is the financial side of the development process. But fear not — with meticulous planning and in-depth research, you can easily prepare for even the worst-case scenarios. Take proactive steps — analyze the needed costs, create a budget that considers fixed and variable expenses, monitor your spending, and create a high-quality product everyone loves!
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