It’s not easy to create a successful app. In fact, it can be downright expensive from the get-go. And while many people think they have what it takes to design their own app on a shoestring budget, most do not realize that this is one of the quickest paths to failure there is. So before you decide that your next project will be an app, take some time and read the key factors involved in the app design cost process.
Key Factors Involved in the App Design Cost:
When factoring in the app design cost, it’s important to think about what you’re willing to spend money on. This will not only save you some cash but also reduce stress levels throughout the entire creative process. Let us explain…
Beyond just saving money, there are other benefits to limiting your budget requirements. Think about this: If an app developer is already struggling with a limited budget they may rush through or even neglect certain portions of the app. Doing so could cause a variety of problems from bugs and crashes to loss in user productivity. Your best bet is to sit down with somebody who has extensive experience in app design and layout so they can help you with not only creating your app but also with the budgeting process.
Design fees can range from $2,500 to $50,000+ depending on the number of screens and features necessary for your app to be successful.
App Design Fees
Design Fees are the fees paid to developers, programmers, graphic designers, and UX/UI producers for their creative work. These fees also include any revisions supplied by the creative team throughout the app design process. This is an app design cost that will be one of your biggest costs that can quickly add up if you don’t thoroughly research and negotiate.
App Development Fees
App Development fees tend to be one of the biggest, if not the biggest, app design cost in the long run when you factor in app design and development. This includes everything from code writing, bug testing, and operating system compatibility issues, to name a few. The more complex your program is, the higher the price tag can become. A flat development fee that offers unlimited changes is usually more expensive than an hourly rate that limits revisions. It all depends on how extensive and in-depth you want your project to be.
Server Admin & Hosting Fees
Server Admin & Hosting Fees: These fees cover any expenses associated with hosting servers necessary for running your new app 24/7. Be aware that most apps will need their own server space due to high traffic and/or constant running of complex programs. Both parties should decide together if your app will be hosted on their servers or on separate ones.
Content Hosting Fees
Content Hosting Fees: This fee covers the hosting charges for any data, videos, music files, photo galleries, etc., that are included in your app design. It’s important to keep track of how much content you have included in your design prior to launching it into the market. Your end goal is to make sure that you aren’t paying too much for hosting costs over time as this can become a drain on your bottom line quite quickly.
App Marketing costs
App Marketing Costs: These fees cover any expenses associated with advertising and marketing campaigns necessary for bringing traffic to your new app program. This can include Facebook and Google Adwords campaigns, pay-per-click advertising on search engines like Google and Bing, and banner ads on popular websites. It all depends on your budget and marketing strategy for attracting users to download your app successfully. At the end of the day, you’ll want to make sure that this type of investment is bringing you a good return on your investment (ROI).
Pre-Launch Promotions: These fees cover any expenses associated with promoting your app prior to its official launch date. Some examples include contests for beta testers, website giveaways, targeting social media campaigns to gain pre-launch interest in your new program, etc. Low budgets are usually not accepted when it comes to pre-launch promotions since these are often the things that build excitement around your app launch.
Launch Party Expenses
Launch Party Expenses: These fees cover any expenses associated with celebrating your new app program’s official release into the market. Popular options include press conferences, celebratory parties, media announcements, and more. You should consider how much money you are willing to invest in successfully launching your new app when it comes to this app design cost. Sometimes just small local celebrations can be just as rewarding for users and industry insiders when gaining credibility in the marketplace is what really matters most.
App Metrics: This fee covers the app design cost associated with hosting analytics tools necessary for tracking user activity on a daily basis within your app platform. Common data tracked includes usage time per day, number of active users each day/week/month, which platforms are most popular with users, etc. If your app is not generating the desired user activity metrics, it will be difficult for companies to justify future investments in your program by way of continued design renovations and updates.
App Upgrades: Inevitably, no matter how perfect your original app design is when it comes out of the development phase you will have bugs that need to be fixed and features that need to be added over time. Be prepared for this possible cost by setting aside a certain budgeted amount each year in order to accommodate any upgrades or revisions necessary for keeping your new app relevant within the marketplace in a timely fashion.
Be sure to negotiate all payment terms upfront prior to signing on the dotted line. A smart way to approach this is by setting up milestone payments when certain goals have been hit for a project related to new app design and development. This will protect both parties from wasting time on a fruitless endeavor if either side has unrealistic expectations or unforeseen circumstances arise during the process of bringing your new app to fruition.
It’s important to understand that most apps require ongoing maintenance in order to keep them running smoothly and user-friendly. This, of course, generally comes with an additional fee attached beyond the original app design cost associated with designing it from scratch. These types of fees can get costly over time, especially if you have a very popular app within the marketplace that generates a lot of activity due to its popularity.
It’s also important to note that upfront app design cost associated with the design and development of your app does not include any additional fees that may be levied by the app stores themselves. For example, Apple has a standard rate of 30% commission on all in-app purchases made within many of its most popular apps.
The average app design cost can range between $2,500 to $50,000 depending on the intricacies of your app. Pre-launch promotions, launch party expenses, and app metrics are all common costs of designing an app. App upgrades are additional expenses that you may need to account for. Be sure to negotiate payment terms so both parties are protected in the event of unforeseen circumstances or unrealistic expectations.
If you have questions about the app design cost or what goes into it, feel free to contact us.