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How Much Does It Cost to Develop an App?

What are the overlooked expenses when developing an app?


Building an App is an investment in both time and resources. When getting started, most entrepreneurs wonder, "How much does it actually cost to develop an App?"

As a general rule, the more complex the App and the more expansive its features, the more expensive it is to develop (and maintain).

Another key factor is the method used to develop the App. Apps that are developed using templates and pre-existing features available via online platforms are typically significantly cheaper than Apps that are developed (coded) from scratch. This is simply a reflection of the programming labour costs associated with traditional App development methods, particularly in first-world countries.

There are a number of other factors that influence the overall cost of developing an App, some of which are discussed below. These include the initial design, the integration of any ‘special features’, the deployment and publishing process, and ongoing maintenance.

Whilst these aspects contribute to the ‘whole of life’ costs associated with developing and maintaining an App, some frequently overlooked expenses can also significantly affect the overall budget.

1. Preliminary Research and Planning

Before the development phase kicks off, it may be beneficial to conduct research, particularly if you’re intending to monetize an App which will compete against others in the same market. If this is applicable, conducting a thorough market analysis, understanding the target audience, evaluating potential competitors and carving out a unique proposition for the App, are all steps that shouldn’t be ignored.

Once you are clear on what you want to develop and why, you should check to see the that the features you want are available through an online self-build platform, or enquire about the potential cost to develop such.

2. Advanced Features and Integration Costs

Every ‘special’ feature you add can influence the final cost. Want the latest in augmented reality? An automated chatbot? Integration with third-party services? If these features are not available through your preferred online development platform, then they are probably considered ‘above and beyond’ basic functionality and will naturally result in additional cost.

Remember, the customisation of unique features and integrations with third-parties (ie. API’s) can be complex and will require additional resources and expertise, which will add to the overall bottom-line.

If the expense of developing your App is your key consideration, then ‘keep it simple’, or utilise the features which are readily available! Developing a ‘simple to use’ App with an intuitive navigation framework often results in a much better final product than an overly ‘busy’ App in which the user can get lost or not be able to easily locate key information.

3. Testing: Not a One-Time Thing

It's tempting to think of testing as a one-off phase. However, robust App development and management requires iterative testing. It means checking the app across multiple devices, operating systems, and varying conditions of connectivity to ensure its fluid performance. Whenever there's a new update or feature incorporated into the App, you guessed it, more testing.

4. Post-Launch Support and Maintenance

After celebrating the success of your launch comes the reality of user feedback. There will potentially be unforeseen issues, bugs, or user-experience enhancements to handle. The need for immediate post-launch support is vital. Also, regular maintenance ensures your App remains compatible with new devices and operating systems.

In this context, some modern online mobile App development platforms can provide you with the ability to synchronise new content directly into the live App, often without the need to republish the App. Likewise, some online platforms offer live ‘Previewer’ functionality to enable you to test out updates to ensure correct functionality, prior to synchronisation (or republishing, if required).

5. Periodic Software Updates

The tech world races. An App that remains static can quickly become obsolete. It's not merely about adding shiny new features; it's about evolving the App in tandem with technological advancements, refining user interfaces, optimising backend performance, and ensuring compatibility with updated operating systems. Also, from time to time, both Apple and Google update their minimum SDK / iOS requirements for future App publications to ensure compatibility with the latest devices.

Online self-build platforms should ensure their compilation processes are updated and configured on an ongoing basis to ensure their builds comply with these requirements, meaning your App won’t become outdated and unable to be downloaded on newer handsets.

6. Marketing and User Acquisition

Build it, and will they come? While this can certainly be the case in a variety of situations, it is not always the case, particularly in a competitive App marketplace.

The success of monetized Apps depends significantly on visibility. Marketing expenses can range from promotional campaigns and engaging content, to search engine optimisation and influencer collaborations. The implementation of these aspects can ensure that your App doesn't just exist, but thrives and grows via its user base, however with all marketing endeavours, it costs money.

If monetization is your focus, an appropriate budget should be put aside for marketing your App’s availability.

7. Licensing and Compliance

Depending on the function and geographical market, some Apps might need specific licences. For instance, a health App might need to adhere to strict data regulations. For example, during COVID, only Governments and bona-fide medical practitioners (registered doctors) were able to include any content related to COVID in a mobile App. A financial App could require banking licences or certifications.

Ensuring compliance to enable such Apps to function isn’t optional; it’s mandatory and often carries associated costs.

8. Server and Infrastructure Costs

Depending on your approach, mobile Apps need to be ‘housed’ somewhere. This home is on servers. Servers and storage costs can vary depending on your service provider and who you used to develop your App.

image of app developer on laptop computer

As the number of users of your App surge, so does the demand for server resources. Beyond just hosting, considerations about speed, security, and scalability also play a part. Preparing for these infrastructure costs is essential, especially if you're looking to offer a seamless experience to a broad audience.

Some online mobile App development platforms provide unlimited hosting (including cloud resourcing) free of charge for subscribers and custom-build clients. If you think your App may eventually have a large concurrent user base, you should ensure the infrastructure to support the future growth of your App is appropriate and be aware of the associated costs.

Some online mobile App development platforms provide unlimited hosting (including cloud resourcing) free of charge for subscribers and custom-build clients. If you think your App may eventually have a large concurrent user base, you should ensure the infrastructure to support the future growth of your App is appropriate and be aware of the associated costs.

Understanding the True Cost: Beyond Initial Development to Sustained Success

When we start thinking about App development, we often think about the costs associated with designing, programming, testing, and launching, however these aspects really only address the initial phase. The full extent of cost encompasses aspects far beyond its birth. To fully grasp the ‘big picture’ and overall cost reality, one must look at the entire lifecycle of an App, from conception to maturity.

After an App is launched, it must be maintained and reviewed on an ongoing basis. It is likely to need care in the form of post-launch updates and maintenance. The digital world is ever-changing, and to keep an App relevant (and functional), you'll find yourself investing in bug fixes, security enhancements, and even minor tweaks to the user-interface. For example, you may need to update your privacy policy to address changes implemented by Google or Apple. These updates are pivotal, ensuring your App doesn't become a relic in an evolving tech world. This is why it is crucial to ensure you have control over updates and content changes (and are very clear on the costs of doing so, particularly if you are subject to change fees), over the entire life of the App.

As your mobile App finds its audience and gains traction, another cost dimension may emerge in the form of scaling. An influx of users is excellent news, but your supporting infrastructure (if applicable) must grow to accommodate them. The last thing you want is for your App's performance to falter just when it's gaining popularity.

But how do users find out about your app in the first place? That's where marketing and user acquisition come in. You could have a groundbreaking app, but without the right marketing strategies, it risks being lost in the vast App marketplace. This concept may not be applicable depending on the type of App being developed (and its intended users), however allocating resources for promotions and user engagement (particularly for Apps which are intended to be monetized) is as fundamental as the funds set aside for the App's initial creation.

As time progresses, listening to your users is paramount. Their feedback, after all, is a goldmine. Tuning into their experience and making necessary adjustments to your App can spell the difference between a mobile application that's merely on the market and an App that's genuinely loved.

As your App grows, it might lean on third-party integrations or services. These tools, while enhancing your App's functionality, can come with their own set of costs (some of which you may have no control over). With technology's rapid pace, every new operating system update implemented by a third-party could mean tweaking your App to ensure seamless compatibility.

Complex Apps, especially those serving niche markets, might also demand training resources. Whether it's intuitive video tutorials or a dedicated support team, ensuring users can navigate effortlessly throughout your App is crucial.

Lastly, in today's digital age, security isn't just a luxury; it's a necessity. Ensuring your mobile App is compliant with data protection regulations and is fortified against cyber threats is not just about protecting your reputation; it's about safeguarding your users. Whilst mobile App technology is inherently secure, you should check the cyber-security arrangements in place with your preferred provider to ensure your App is housed in a secure environment with redundant architecture, and cannot be accessed other than by approved administrators.

To sum it up, there is a lot more to developing a mobile App than initially meets the eye. App development is not a one-off event; it's a continuous journey with both anticipated and unforeseen expenses. By understanding and preparing for these costs, developers and businesses can ensure they are well equipped (and funded) to take advantage of the many benefits available via the use of mobile App technology.

Take the Next Step in Your App Journey

As you embark on your exciting mobile App development journey, remember that it is not a ‘set and forget’ process; it's a commitment to continuous evolution in a dynamic tech landscape.

By now, you should have a clearer picture of the costs and activities associated with developing an App, beyond just the basic estimates. The real value lies in understanding and preparing for both the evident and hidden costs.

App Wizard delivers highly-affordable self-build and custom-build mobile App solutions. Secure hosting (and cloud resourcing) is included free of charge for all Apps developed on the platform.

Ready to turn your App idea into reality? Let's ensure every dollar spent is an investment in its success. Dive deeper, plan wisely and build a mobile App that exceeds your expectations. Visit appwizard.com.au, call 1300 304 224 (or +61 490 009 190), or email info@appwizard.com.au




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