How to build a successful mobile app? You need to plan all the aspects carefully — especially the mobile app development budget. Since the services in the IT field aren’t cheap, it’s required to consider all the project details and requirements beforehand. It allows creating a budget to develop a mobile application.
So, the question arises — how to create a mobile app development budget? In this guide, we’ll discuss the eight steps to need that help you plan a budget for making an app.
Define Your Business Goals Before Starting the Development
Mobile application development is a struggle. To clearly convey your idea to designers and developers, you should understand all the details of your app idea.
Below you can find the steps that influence the final app development cost. So, you’d better consider them creating your budget.
Step #1. Define the Purpose of Your Mobile Application
There are a lot of scenarios that require mobile app development. To give you a hint, we’ve listed the most popular below.
- Broaden your opportunities. Such a model is good for an e-commerce business. So, you have a brand that is presented physically or even has a website, but you want to offer a mobile-friendly experience and get more sales. The number of mobile users is growing, so it’s high time to develop a mobile solution for your e-commerce business.
- Make your idea come true. If you have a unique app idea but no tech expertise, you can cooperate with a software development company. The app development team helps you solve all the issues with technologies and app functionality.
- Boost your business. Mobile apps are profitable for any kind of business. Moreover, mobile app solutions can help you dominate over competitors due to their convenience.
- Engage new customers. Nike has developed a running app called Nike+. Such a useful product allowed them to engage more clients and broaden the target audience.
Step #2. Select a Platform
There are two primary platforms for mobile app development — iOS and Android. Of course, to gain more users, you need a mobile app for iOS and Android.
However, if you lack a budget, you can study your target audience and determine what operating system they prefer to use.
Step #3. Choose Between In-House Development and Outsourcing
How to create an app? There are two most suitable ways — hire an in-house team or cooperate with an outsourcing company.
Each option has pros and cons.
The in-house development team allows a better communication process. However, hiring such a team tends to be quite expensive. There are a lot of additional expenses like office rent, hardware and software purchase, and others.
In case of hiring an outsourcing company, you get lower rates along with good quality. On the other hand, you may face communication difficulties. You need to create a schedule to communicate with a development team.
Step #4. Create a List of Required Features
Of course, the features you want to integrate can change the final price of mobile app development. The more complicated the features you want, the higher price will be.
You need to show the list of features to the development team, so they can estimate the time they need to integrate this functionality.
Step #5. Create a Marketing Strategy and Estimate Your Profit
It’s not enough to create an app and put it in the App Store or Google Play. Customers need to know about your tech solution. That’s why you need a marketing strategy. Most users discover new apps by searching the store or looking through the list of the top app ratings.
Any business needs to get profit. So, you should clear your revenue goals. It’s required to set the revenue goals for the future. Also, you can create an investment plan to improve your mobile application plan.
Also, by analyzing the demand for your kind of an app, you may calculate an appropriate revenue from your product.
How to Calculate the Mobile App Marketing Budget?
We’ve already mentioned the marketing strategy for your mobile app. Of course, you have to put money into your application promotion. In this guide, we’ve decided to find out the marketing budget based on paid advertisements.
Step #6. Decide on the Number of Installs
You should decide how many users you want to attract or how many you can afford to attract.
Smart Insights claims that to hit the top 10 apps in, for example, the Music category in the App Store in the USA, you should have approximately 111,551 daily installations.
Step #7. Find Out the App’s Cost Per Install
Cost per install (CPI) is a primary metric in mobile marketing. CPI stands for the price demanded to generate a single installation. The approximate price can vary from $1,2 and $1,6.
Step #8. Get Your Downloads
Of course, the CPI can’t be generated by itself. You need to help generate installs.
The most reliable way is to hire a marketing specialist who can analyze advertisements’ efficiency on popular social media sites like Facebook, Twitter, and others. After launching the campaign, they will see where users come from, the duration of app usage, and how fast they delete your app.
It’s also possible to use email marketing to promote an app.
As you can see, there are a lot of points you need to consider creating a mobile app development budget.
If you decide to cooperate with an outsourcing company, you should consider the team’s location. The hourly rates are different in various regions. For example, American developers tend to have the highest rates. Developers from Europe offer lower rates along with good quality.
Vitaly Kuprenko is a writer for Cleveroad. It’s a web and mobile app development company with headquarters in Ukraine. He enjoys writing about technology and digital marketing.