How much does it cost to develop an app?

How much does it cost to develop an app?

 

Table of Contents

Types of Apps
App Development Process
Development Costs
Design Costs
Total Costs
Free iPhone App Quote

Overview

In the past two years, the app market has exploded. In under 9 months the Apple store reported over a billion downloads, and then doubled that number in half the time. The app craze has spread to Android, Blackberry, and every other mobile market under the sun.

And for good reason. Having an app for your business or promotion or whatever it may be can be a game changingmarketing tool to drive traffic and revenue. On the highest end of the spectrum, you see Angry Birds making $50M off a simple game. Then you also see people who put out basic free apps and still get thousands of downloads for doing nothing. A lot of conversations I’ve had in the past year don’t even talk about apps because the client thinks it’s clearly going to be too expensive and they have no idea where to even start.

The good news? It’s not as expensive as you think and it’s really not hard to start.

Let’s talk about what goes into getting an app developed.

Types of Apps You Can Develop

Types of Apps You Can Develop

There are many different kinds of apps you can develop. This goes beyond the categories that Apple groups the apps into – food, lifestyle, sports, etc, and into the architecture of different types of apps. Speaking in broad strokes, the basic buckets of app types you can create are:

  • Basic table functionality – think about this as a hierarchy: opening screen has big topics and you click one and you now have a set of new lists to click on. The email in the iPhone is a good example of this. Definitely the easiest to build and design and a good option for businesses who want a “simple” app that displays basic information. It’s very possible to make table based apps work with a good iphone app designer.
  • Database driven custom functionality – Yes, I know that this is not a very specific bucket, but it is the best way I can describe creatively parsing out content. Imagine you have a whole load of content that you want to utilize. An example would be having hundreds of dog breeds that you want to organize and display differently. This can be done beyond the basic table format to make the app really work. Development on this gets more complex and starts to get into whether or not you want the data housed “native” (built into the app) or “dynamic” (built into an online web services). We’ll talk about that later.
  • Games – These have the largest range of complexity, starting with something as simple as a PONG type functionality (imagine Atari) all the way up to a 3D physics engine that does high speed air racing. Scoring points, incorporating the user experience through the physical movement of the device, and hooking into Game Center are all possible.
  • Enhancement or Modification of the device firmware or hardware – This means that you take certain functions of the phone, such as the alarm, camera, or flash, and make it better. One of my favorite examples of this is the Camera+ app that adds filters to any pictures you take on your phone.
  • Fully dynamic apps – Similar to the database driven apps, these apps are the kind that rely purely on external information – Twitter, Weather Channel, Flipboard.
  • Custom utilities - These are apps that are geared towards allowing the user to input content in a specific way. Examples are Pages, Adobe Ideas, and Numbers.
  • Everything else – I’m sure there are some apps out there that are completely unique, but I would say the list above covers 95% of what’s in the store today.

The type of app you want to develop may change based on how much content you have and how much control you want to have over the entire process. It’s important to realize that you can get apps done very quickly and cheaply if you know what type of app you want to develop – going into the process without being open to another option could cost you big time.

App Development Process

The app development process can be broken out into four major parts – idea, layout and planning, design, and going live.

1. The Idea

This is the first genesis of where the app will be going and one step after “I want an app.” Looking the app store, there are dozens of different directions you can go – simple information, a game, interactive, etc. You can imagine that the more complicated it is, the more it’s going to cost – but also a higher chance at getting a return on investment. Games are complicated, but can go viral easily. Simple apps don’t do much, but they are cheap and easy to build. The first step of the process if to find your sweet spot of budget and marketing effort.

2. Functionality Layout

It’s not enough to paint the broad strokes for a programmer, because they’re not going to deliver what you want. You need to either invest a lot of your own time to go through the details or find someone who can translate Programmer to Civilian and vice versa. This will pay off big time in the end. This step involves going through every single screen and understanding how all parts of the app interact with each other – If I press this button, what happens? You will be amazed how many steps and scenarios there are for even the simplest app. The amount of functionality that needs to be defined and built will also play a part in the cost of your app.

3. Design

Unlike websites where you can often get someone who can design and code at once, apps usually require a team of people to complete. The nice thing about this is that the designer can be graphics, print, web, or whatever – the deliverables to the programmer will be images that he just pops into the appropriate areas. The design comes in typically once the programming and functionality have been defined – the designer gets a full list of what needs to be created. Design can make or break an app, plain and simple, so don’t skimp on this. You need a great icon, splash screens, tab icons, and dozens of other assets that need to be tied together.How To Develop an App Like Angry Birds

4. Going Live

Once you have the app built in xCode (the program that apps are built in for Apple), your developer can help you get the app in the store (iTunes for this example). This requires setting up an iTunes Connect account ($99/year) and then filling out all the information necessary for the app – icons, descriptions, pricing, etc. Most of this is pretty intuitive one you get the files loaded, and a lot of it can be done by your technical team. The setup is also a one time thing, so if you decide to develop another app later on, you already have an account you can dump it into.

Once you have the app up in the store, you can monitor all the analytics on the back side of it through iTunes Connect – how many downloads, how much $$ you are making, etc. There are lots of different ways to drive revenue with apps, including advertisements inside the app and being able to purchase additional information through the app (in-app purchases). You can see everything happening. You can also have someone monitor this account the way you would have someone monitor your PPC or SEO campaigns so that you are always maximizing your traffic and revenue.

iPhone App Development Costs

Development for iPhone apps deals with the programming side of the process. With most projects, an app development firm is going to roll up the design into the entire project since it’s a bear to try and piecemeal images into an app unless you build the entire thing dynamic and through XML via online databases. One thing to note is that these costs can vary depending on what devices you are developing for. Make sure you ask your developer what you are developing for – basic iPhone, iPhone 4, iPad or all of the above. I’ll see what I can do break out typical development costs for different example projects.

  • Simple, table based app - $1,000-4,000 - you provide all the content, clear direction, and example apps of what you want it to do. If you know your way around Photoshop, you can probably supply the graphics which will cap this project at $1,500. The additional costs are when you want to GPS locators, Social media integration or bells and whistles like that.
  • Database App (native)$8,000-$50,000 – Again, you provide every piece of content, image, writing, sound, etc. The cost is going to come from creating the logic within the app and architecting all the usability and/or game play. The content will usually be dropped in and then parsed accordingly. These projects tend to be front heavy since the data is what’s driving the entire game and the framework is so important.
  • Games$10,000-$250,000 – The hardest to ballpark. As a benchmark – I’ve heard Angry Birds cost anywhere from $125K-$180K to develop (although they were pioneers). Talking to some developers who are into the hardcore game source code (render, sound, maths, physics, etc), many of the racing games will that use the gyroscope will be $125,000 without even blinking – and that’s just for the code. Even if you try to keep it hyper simple, games get complicated quickly. Hooking into game center, having top scores, and integrating with an online community can be tricky. The benefit of a game is that they download in much greater number. As a marketer, there is nothing more viral than a fun game, which is something to keep in mind for your ROI. Ask yourself: how much do I need to spend to make a “fun” game? That’s only something you can answer.
  • Additional Includes – See below - here’s a quick list of additional functions you may want to add into your current app:
    • In-App Purchasing – $1,000-$3,000 – this allows for users to buy new content or full versions of the apps. The cost spread comes from the amount of in-app purchasing, the complexity, and whether or not you build it all into the first app or if you are doing it from a server.
    • Web Services – $1,000-$5,000 – This is taking the content to a remote access point so that you can update your app with an XML files instead of raw code changes. The degree to what you need varies but I would recommend having this conversation with your developer before getting too deep – it can save you HUGE headaches down the road.
    • Game Center – $1,000 – Apple’s done a good job at making this integration easy with the SDK. As long as you keep the numbers clean, you should be able to integrate easily.
    • Share Capabilities – $500-$1,500 – This is mostly for social media (twitter, facebook) and emailing, but there can be other integrations. WordPress websites, for example, may be one. Lots of options and most of these platforms have robust APIs to make it work well.

iPhone App Design Costs

The design of your app is going to make a huge difference in your overall ROI and user experience. The design will help convert viewers to downloads from the screenshots you decide to upload and will help people using your app feel more engaged. Investing in a good design is easily the best way to increase your margins on a 2 year timeline. You can use a web designer, but often your best bet is going to be finding a mobile app designer who understands user flow and the space restrictions.

App designs usually come in packages, much the same way development does – you will buy a “suite” of .png and PSD files that fulfill all your needs. This includes all necessary screens and icons. You will be surprised at how many different pieces there are, the icon alone needs about 4 different sizings for a universal app (iPhone and iPad). Here’s a rough breakdown of costs:

  • iPhone only (usually the base line is not done for the retina display, as seen in the iPhone 4 as they require higher resolution files) – $500-10,000 – This will get you a base level design that you can send over to the developer who will be able to add these images into the code. HELPFUL TIP: ask the developer what they want the files named and do that for them before sending. It will save you both lots of time and headaches.
  • iPhone 4 Compatible – Add 25% to above cost - these images will be sized at 960 x 640px height (twice the 480×320 for the regular iPhone)
  • iPad – Add 50% to above cost – this is assuming that the layout is very similar and user flow is also similar. In many cases you will have to create alternate functionality to accommodate for the iPad size and speed, which requires new designs.

The icons should be included in this entire package and you can probably ask for screen shots if you want to have some that are better than doing a simple screen grab of your phone. I’ll say it again – don’t skimp on design….you’ll have a MUCH harder time making your money back. The full story of developers and designers can be found in my free ebook.

Total App Costs

There really aren’t any hidden fees except the the $99 Apple will charge you per year and the 30% cut they take for each sale you make. Everything else will be in development, design, and IT architecture (hosting, servers, etc). The total cost of an app can vary based on all the different variables from above.

You can definitely find all-inclusive firms that will do everything for you for $1,000 or so, just be wary of the quality and how much control you will have over the process. Just like anything in web marketing, low costs means they have to make it up in volume and the client feels that the hardest. Think less about the cost and more about what strategy will have the biggest ROI before pulling out your checkbook. Even if you let the app sit in the store for a year, putting some light marketing and analytics attention on it can easily help pay for your investment. I’ve seen apps that cost $3,000 drive about 2K new users to a website a month, with an average time on site that is 400% higher than web visitors. You can get very creative in how you market these visits.

Please note that the above numbers are highly variable and can range lower or higher depending on lots of factors. As the market increases in competition, you’ll see the cost come down, but just be wary of the 19 year old high schooler who can built you Angry Birds for $1,000. Similarly, there are companies paying $250K for one simple database app to be developed, which is like paying someone half a million dollars for a website. Just corporate bloat – if you’re going spend that some money, you better be getting something incredible.

Leave a Comment and Download My Ebook to Get More Information

I’ve developed a few apps for fun and I would recommend anyone thinking about it to have a discussion about it, no obligation at all. The web’s next big market is going to be mobile – both phone and tablet. You’re either in or out. If you want more info, download the ebook. All I ask is that you Like this page on Facebook, Retweet this article, or link to me from your site. Please note that I get about 10-15 emails a day from people asking for advice on apps, so if I don’t get to you immediately, don’t take it personally :-)

Make sure you sign up for my newsletter on the right hand column of the website and download the ebook. It walks you through the entire process of creating and making money with iPhone apps and often answers 90% of the questions people have.

There Is Another Way

When I first started I had two goals – learn about this cool new mobile market and make money in the process. The problem was that I didn’t have a huge amount of money to spend AND I couldn’t afford to take a risk like that.

So I figured out that if you buy app source code at a fraction of the cost, you get 80% of the work done for you for about 10% of the cost of developing it yourself. It changed everything.

This process of “flipping” source code allowed me to make hundreds of thousands of dollars in a matter of months. It’s a new way to think about the app business and how to make money. If you’re interested in getting into apps in order to make money, I urge you to read about how I did it and sign up for the source code list.

Click here to read about how to re-skin apps »

If you want to read more - subscribe to the newsletter and download the ebook. I wrote it for people who enjoy this type of article. Easily the best place to start if you want to learn more about apps.

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Carter

Joi

COMMENTS

  • Rahul January 23, 2014

    Great article. However, I would emphasize the fact that everything depends on the project, each projects is unique and requires different time and amount of money to be finished. More complicated and unique projects always cost more.

  • Justen January 24, 2014

    Wonderful article!! i will certainly be following your posts so I can learn more about creating a native version of my website!!

    Thank you…

  • Prashant February 3, 2014

    Hi Liked your thoughts. Eager to read your e-book.

  • Philip Gorfett February 10, 2014

    My idea for a phone app is connected to the football fraterity.
    Basically the game is a simple penalty shoot out that can be played by one person or it could by played with another player on the end of a phone line, allowing the possibility of a world wide shoot out competition involving league tables.

    A goalkeeper would stand in the goal mouth, which is split into 63 boxes. 7 rows high with alabetical letters and 9 rows across the goal mouth, with numerals 1-9.
    A flash would appear in one of the boxes , i,e – c6 and at that point the player would have to react quickly enough to imput the same code to block the shot.
    There would be different levels of time reaction set into the app to enable the players to have a fair chance of stopping the shot but the time delay could be set at different levels thus setting up a competition basis.
    I would be interested to know whether you consider this type of game worth developing.

  • Richard Watson February 11, 2014

    I have a manuscript that is being converted to an Ebook. The format/layout of the manuscript is a workbook. The workbook has questions and space is provided for the individual to fill in answers to those questions. We want those spaces available/working in all formats: iPad, Kindle, Nook, Nextbook, Samsung and laptops.

    What would be a ballpark price be to have an App built that would work in those formats and provide space for answers? And if you are not able to create something of that nature do you know where I could inquire further?

    Richard Watson
    richardwatson01@comcast.net

  • Allan February 20, 2014

    My company has 1,000 or more insurance adjusters. These ‘contingency’ contractors may be on the ‘roster’ for several other entities like mine. When our insurance customer calls and says they need, say 100 adjusters for a hail storm in Colorado, I need to quickly reach out to some/all of my list of adjusters to see who is available, ready to go, unavailable, etc. Ideally I would push this alert from my database using a set/subset of my total list. When they reply I would like the status to update my database, quickly advising who is ready to go.
    Then, I may push another alert saying that adjuster is selected to go and to watch their PC dispatching application for assignments.
    There may be other options in the exchange back and forth but this is essentially the exercise.
    Is there something already out there that you might steer me to or is this likely in the bespoke development realm to run $3-4K…$5-8K…???

  • Steven Daveluy February 21, 2014

    Help! I recently bought an app for iOS called “Buddhify” which is a mindfulness based meditation app. It’s targeted for the general public but is particularly useful for those with mental illness (like myself), it is based on a concept called Dialectic Behavioral Therapy. I find this app quite useful on a daily basis. After searching for an app that would help the user identify, and accomplish goals. Step by step the app (called “GoalKeepr”) would use the devices; email, contact information, notebook, calendar, among other possibilities. The app would provide feedback to the user and a “checklist” for reaching that goal.
    Living with mental illness (which is more and more common) is the inability to create a future. Goals are near impossible to reach without coaching, reminders in conjunction with therapy. I was thinking of Kickstarter to get this off the ground and I’m sure a therapist or PhD. would like to be involved.
    Any advice would be greatly appreciated.

  • Steven Daveluy February 21, 2014

    Oops. I missed a whole paragraph… I’d like to create this app called GoalKeepr

  • Shaun February 25, 2014

    Great article! Thanks for this, we are releasing a one way communication app for organisations and this article helped me a lot!

  • SV Jegan February 26, 2014

    Really a great article. Thank you !
    I got a fair idea about apps development after reading this.
    Would love to read more from you !

  • Charlie February 26, 2014

    What an excellent read.. I was and still am asking all of these questions being I want to get a couple of app’s going myself. I have a few excellent idea’s ( at least I think they are excellent) for app’s that I believe would be helpful for some people and fun for others. The biggest hurdle I have is the total lack of knowledge to know to where to even start. I am currently working in auto repair and now I now how people feel when I try to explain what is wrong with their car and I get the deer in the headlights look..haha.. I am gonna shoot you a message with the hope of being able to chat with you about this.. Thanks for writing this.

  • Todd February 27, 2014

    Nice post Carter! You cover quite a bit! I work for a mobile app development company and frankly many of these posts I come across are way off. I might add a bit more to Functionality and Layout, or possibly a whole new section “User Research for UX”. When you see the successful apps out there say like Angry Birds, Camera+, ect they all have one thing in common. They understand their users, they succeed because they make assumptions and before implementing those assumptions they validate them through proper research. Instead of wasting resources building a piece of software with tons of features that people don’t want. They spend less resources finding out exactly what it is they want and build based on those findings.

    This directly plays into cost, proper research on the upfront will help keep design and dev costs down later.

  • Bert March 1, 2014

    Comprehensive article and very accurate. Thanks. Question for anyone out there. I am thinking about building app that can jump over to another app. Is that possible in IOS? How complex to do?

  • david March 3, 2014

    i beleve i have a great idea for an app that turns out to be rewarding for those who would download it .. problem is as u stated i have a complete lack of understanding in were to start or who to go to or were to find the people to help me .. i have a few simple questions id like to ask u about this app i have in mind if u get back to me .. thanks

  • AlfredaGiedrojc March 19, 2014

    Great post… Phone application development is in high demand in the market because phones are capable of supporting wide range of mobile applications.

  • jim March 19, 2014

    I have run into situations time and time again where I am unable to locate certain events (or even worse, find out about them AFTER the the “epic” event has happened)
    I believe the necessity is the mother of invention, hence I feel I have a great idea for an events locating App. I have the basic framework figured out, along with some ideas on layout design. I do not have much in the “tech skills” dept. but truly feel I have an award winning idea that needs to be brought to light.
    I have already searched high and low for a similar App in iTunes, but have not been able to locate an App that truly embraces what I am needing as well as what I am looking for.
    Without going into too much detail about the ins and outs of my idea in this short message, I was hoping you could give me some direction on how to create an App that would forever change the way we search and connect with a vibrant entertainment.(and possibly make some residual income ;) I already see lots of potential for in App purchases along with advertising placement revenue . I just need to give this the right foundation so that it can grow into it’s full potential.
    I have looked into companies such as “AppVillage” for other App ideas, but didn’t feel like that was a good choice and felt like the idea was “taken” or simply dismissed and my review costs disappeared.
    Your thoughts and direction would be much appreciated.

  • Martin Jakony April 3, 2014

    I found your post very interesting and would love further insight into the app building world. Thanks for the knowledge, please write back.

  • Jeffrey Gibbs April 15, 2014

    I’m Android fan through and through now. Too many OS versions & Too many different handsets in the marketplace. I am staring following you for more interesting post like this.
    Keep Sharing and posting with blast topics like APP.

  • katrina Dixon April 29, 2014

    Interesting :). however still a bit mind boggling for the naive and inexperienced person with the great idea ( that’s all I have). I was wondering about doing a search in the itunes store, however the wording would have to be quite specific for this search, and I wonder if other people may have their eye on what people are searching for, then pinch their idea??
    Also was wondering about the option of sharing the idea ( so the profits would be shared also), would it still be profitable to source a well known company ( one that already has apps and websites), and offer them my idea? would i have to patent it first, so they too wouldn’t pinch it? Just need an easy way out, especially since i don’t have money to invest.

  • John stepen May 1, 2014

    Good article, I want to develop an application but i didn’t know about cost and further details, through your article l got knowledge about how to design and develop it. Your toatl content was awesome its easily understand all developers to make an app perfectly with entire app cost.

  • Janine Gardner May 14, 2014

    Carter,
    Thank you for your informative post. This will help me tremendously.
    This app thing is new territory for my comedy/production mind. I Googled in hopes of finding an outline that would tell me how to lay the groundwork for a successful project, or at the very least, give me the word-tools and logic to go about this without coming off completely stupid.

    I would love to follow your blog.

    Janine Gardner

  • Geoff May 21, 2014

    I am interested in shopping around for someone to help me create an app. I have the concept idea and understand very well it’s potential impact…likely it would be bought up by a larger entity to complete their package…the numbers thrown out for development aren’t terribly frightening. Admittedly though there will need to be one completely new reapplication of a current existing item that will require some creativity, and hence the expense.

    Where can I start shopping developers? Should I consider the WWDC and see what people are doing and who might be working in the general area? To date I’ve seen nothing even close to what I’ve envisioned AND it’s in Healthcare which I’m very familiar with so where would others start?
    Thks

  • Gene Da Rocha May 21, 2014

    Great Website with some interesting and useful information and guidance. Thanks Carter.

    All the best with new advice and help experience and new developers to this world.

  • Daniel May 29, 2014

    Great One!!! Detailed articles and really useful.
    Hi Geoff,
    For hiring developers just check www. appdevelopment.com if your are still interested in app devlopers.

  • stephen caldwell June 5, 2014

    I asked what I think is a pretty good idea for an app I don’t want to go through the process of developing it myself so what to hire somebody to do it for me can you help me?

  • ron June 9, 2014

    I have an app idea to which I have spoken to a couple of companies about after they signed a non disclosure agreement. Its an app which has huge potential, in its essence is very simple but difficult to implement I’m told because of the iOS software. Can any one help? If I could get this app in the market, and working, the rewards would just be ridiculous. There is not an app on any platform like it so I’m aware

  • Brad Gross June 23, 2014

    I have idea for app for phones and as download –card game and dice game where do i go to build and how do a protect it…thanks … 509soldcom is tweet or 509sold@gmail.com

  • Gerard Wilson July 6, 2014

    I have an app. I think that will revolutionize the retail industry. Where do I start to make it reality?

  • Juan c Laverde July 18, 2014

    I am interesting at app for transportation , maybe u can help with that appreciate if can contact to me

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