App Is Worth

How Much Your App Is Worth?

Every mobile app developer has this question in mind once they finish their first app or later on after launching their existing apps. It is natural for a mobile app developer to wonder, “How much should I charge customers?”

It is important to take into consideration the following factors when setting the price of your mobile application:

  1. Your App Idea
  2. The Target Market/Customer Group
  3. Pricing Competitiveness and Strategy
  4. Apps Functionality
  5. Business Model  (In-App Purchases, Advertisement)
  6. Marketing Approach & Channels used for Promotion (Paid / Organic)  |Note: Organic refers to non-paid promotion such as press release, blogger reviews, social media and community building)
  7. Platform (iOS App Store, Google Play Store, Windows Phone Store etc.)
  8. Developer Team Size
  9. Time Spent to Develop the Application
  10. Costs that were Expended Prior/Post Development of the Mobile Application (Offshore team coordination and development costs)
  11. Target Market Segments (Global vs Local) / Available Payment Methods / Regulations and Restrictions in Market
  12. Existing Competition link: http://goo.gl/ZaRAoG 13 . Your App’s USP (Unique Selling Proposition), if any – This is important to consider as it will help you to stand out from the other competitors in the market.(link: http://goo.gl/zDIQ2T )
  13. Types of Mobile Applications (Enterprise, Games, Social Networking etc.)
  14. Number of Languages the Application Will Be Released in
  15. New Technologies Used in Your App to Provide Value Addition – For Example: Augmented Reality, Geo-location check-in etc.
  16. Funding & Investors’ Backing – If any  *Opinions expressed by Developers are Personal Opinions and do not reflect the views of Pocket App Team*

Estimates for development costs vary depending on platforms, plugins used, interfaces developed etc., making it difficult to determine how much your app is worth without proper research regarding other competitive apps in your industry or market segment. However there are some general rules of thumb that can be followed depending on your app’s type.

A simple rule of thumb is to charge anywhere between 1% and 3% of the App Store’s current top selling iPhone apps.  For example, if you have a new photo/gallery sharing app, it would make sense for you to follow this rule as there are already a lot of competing apps that exist within this category. You could charge anywhere from $0.99 to $2.99 at max as per the pricing table mentioned above.

Or consider using some type of subscription model where users pay monthly fees for their premium services similar to some messaging apps such as WhatsApp or Facebook Messenger . In this case you will need some research about the competitors in your market and how many users they have to determine the monthly fee for your app.

There are also some online apps calculators that can estimate costs based on certain factors such as:

  1. The time spent building the application

Software development life cycle (SDLC) methodologies employed during development projects, programming language(s) used etc.

  1. Estimated marketing donation per customer

According to game app developers, We recommend you do not go overboard with this rule of thumb . While this is important to consider when setting up user acquisition strategies it will be difficult to recover large marketing budgets post-launch of an app due to increased competition in the market.

  1. Apps functionality

For example if your mobile app requires more servers/servers maintenance cost etc., you should estimate higher cost for development.

  1. Platform (iOS App Store, Google Play Store, Windows Phone Store etc.)

Additional costs may include testing, platform specific tools for developers and app submission fees will also need to be added to the overall development costs.

  1. Third-party APIs or SDKs used within your mobile application

Which require ongoing maintenance & support by their respective companies e.g push notifications via Urban Airship , photos/media storage through AWS S3 . If the API provider is charging you recurring license fees please note these costs in your overall budget. Also remember to consider possible price changes with updates from third party service providers as well as staff to maintain contact with them regarding issues to their services e.g billing, downtime etc.

  1. Hardware/Software Required to Test Mobile Applications

You should consider the cost of hiring additional staff, purchasing additional hardware and software. Also make sure the development team are using proper quality assurance (QA) tools to help them find bugs early in the development cycle.

Types of Mobile App Testing:

To address all the above specialized viewpoints, the accompanying kinds of testing are performed on Mobile applications.

Convenience testing – To ensure that the versatile application is not difficult to utilize and gives a good client experience to the clients

Similarity testing – Testing of the application in various mobiles gadgets, programs, screen sizes and OS forms as indicated by the necessities.

Interface testing – Testing of menu choices, buttons, bookmarks, history, settings, and route stream of the application.

Administrations testing – Testing the administrations of the application on the web and disconnected.

Low-level asset testing – Testing of memory utilization, auto-erasure of brief records, nearby information base developing issues known as low-level asset testing.

Execution testing – Testing the presentation of the application by changing the association from 2G, 3G to WIFI, sharing the archives, battery utilization, and so on

Functional testing – Testing of reinforcements and recuperation plan if a battery goes down, or information misfortune while overhauling the application from a store.

Establishment tests – Validation of the application by introducing/uninstalling it on the gadgets.

Security Testing – Testing an application to approve if the data framework ensures information or not.

  1. Quality Assurance & Testing

Will your application require dedicated testers or can it be tested by your project’s lead/managers? Development teams generally include two to three people for testing however larger apps would require more resources assigned towards QA activities due to complexity of codebase and integrations with multiple services/APIs used in an app e.g social media, mapping services etc . Depending on how many devices you plan to test on would help dictate your QA budget.

For example, if you are building a new messaging app similar to Whatsapp or Facebook Messenger, you should expect total costs of around $160k – $510k according to our online calculator .

But remember this is only the estimated cost of the app and does not include additional features such as monetization (in-app purchase or ads), user management/user profiles, message storage etc. These will usually be added at a later stage during project development and can increase overall costs further depending on what service providers you work with (e.g push notifications via Urban Airship , photos/media storage through AWS S3 etc.).

 

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