LAST UPDATED: December 4, 2017

Understanding the Costs of Building a Mobile App: A Comprehensive Guide

The mobile revolution has ushered in an exciting era for business.

Websites and social media platforms are no longer the only way to build brand equity and generate sales.

Building custom mobile apps is now the new money move for businesses.

And it’s no surprise.

In 2017, there have been 197 BILLION app downloads. That number will explode by a factor of three in a couple of years.

Exciting stuff? You bet.

Chances are, you may still be relying on your website to fulfill your business goals.

Perhaps the seemingly hefty time and money investment of an app have kept you back.

The truth is, you can easily catch up. A mobile app can be built without too much hassle these days.

This brings us to the critical question:

Just how much money will a custom app set you back?

I’ll tell you right off the bat. There’s no magic formula to determine the cost of building an app.

Platform matters. Complexity matters. Talent matters.

And so do a dozen other factors.

In this article, I’ll get into all the variables that will affect the cost and some exact figures. This way, you’ll know exactly what you’re getting into.

But first…

What is a custom mobile app

Without getting too technical, a mobile app is a type of software program specifically designed to work on a mobile device, like a smartphone or tablet.

Are all apps created equal?

Not at all.

There are three types of apps, each with their benefits and downsides.

Native, web, and hybrid.

Let’s look at each of these briefly.

App Type	Benefits	Downsides
Web App	Mobile version of a website, easy to develop	Limited user experience compared to native apps
Native App	Ultimate user experience, specific to OS	Requires separate versions for different OS, app store approval needed
Hybrid App	Operates on multiple platforms, easier to develop	May not fully utilize device capabilities

A web app is a mobile version of a website. Mobile-friendliness is a big deal in the online space.

So I’m pretty confident that most businesses (if not all) have web apps.

And to be honest, it’s not enough. At least, not from the users perspective. It’s clear that users prefer apps over mobile websites.

A native app is built for a specific operating system (either IOS or Android) and is downloaded from an app store.

This type of app provides the ultimate user experience which means it’s among the more complex of apps.

The downside? If you want your app to be accessed on different devices, you must create two separate versions.

To top it off, the apps must be approved by the app store.

A hybrid app is much less complicated to develop, and I’ll explain why.

It’s written using only one programming language, can operate on more than one platform, and can function in much the same way as a native app.

Naturally, this type of app is more popular because it’s easier to develop and manage.

Whether you select a native or hybrid app, I can tell you one thing:

It just might be the most game-changing move that you make for your business.

Here’s why.

Why your business needs a mobile app

You’ve probably heard about all the benefits of having a mobile app. In case you didn’t, let me run over a few of them quickly.

1. Mobile apps increase your value to customers

The bottom line?

Being mobile-friendly is non-negotiable.

An application is the most impactful way to embrace mobile because of it’s sheer value to your customers.

The most prominent benefit is access.

Today’s customers spend approximately 2 hours and 51 minutes on their mobile devices per day.

An app gives them a chance to interact with you at any time they please, without the need to switch devices.

This gives you plenty of opportunities to serve customers in a multitude of ways:

• To offer exclusive discounts and promotions
• To provide product/service information
• To provide free, valuable information that leads to paid offers
• To provide instant customer support and feedback
• To facilitate rewards programs

As you might imagine, these strengthen customer relationships and cultivate loyalty.

Ultimately, you end up increasing your customer lifetime value which is a major business growth needle.

Almost 90% of businesses agree that customer experience is key to driving loyalty and retention.

2. Mobile apps increase customer engagement

Value to customers is one thing. But engagement is next level.

One of the biggest advantages of the mobile channel is that it allows to connect and engage with the audience in real-time, develop trusting relationships and guide them through each step of the sales cycle.

The speed, accessibility, and convenience of an app make it ideal for driving action and influencing purchase decisions.

The result? More sales, and bigger profits.

3. Mobile apps increase brand recognition

The more customers see and use your app, the more likely they are to buy from you. Having a prominent branded icon sitting in front of them for almost three hours a day is an excellent way to keep your brand fresh in their minds.

Best of all, a mobile app is highly scalable and has great viral potential. When thousands of people download your app, it builds on your brand equity.

This increase in customer touch points also shortens your sales cycle.

Think about it.

The more opportunity you have to communicate with your potential customers, the easier it is to coach a sales conversion.

4. Mobile apps are another sales channel

An app could give customers the ability to do whatever they would normally on your site but without having to step away from the comfort of their mobile device.

It’s a direct marketing channel which means fewer interruptions and more conversions.

This helps you make more sales at a lower cost of customer acquisition.

5. Mobile apps offer a path to market preeminence

If you want to be positioned as the preeminent solution in your market, you need to increase your competitive value.

A mobile app does just that and for two reasons.

• The more value you provide to customers, the more you stand out as the superior solution to their problems.
• As your customer acquisition increases, you get to capture a larger share of your market.

And that’s how market dominance is achieved.

6. Mobile apps are a source of invaluable customer insights

Consumer data is everything.

It’s why Facebook’s ad product is one of the greatest in the world.

The level of demographic and psychographic data that you can collect from a mobile app is invaluable.

It allows you to get into the minds and hearts of your customers so you can understand their pain points. It also gives you insight into their behavior and what drives them to take action.

As a result, everything from your marketing to offer creation will be strengthened.

We’ve gone through quite a few benefits of an app, but do you know what?

These benefits can only be realized if your app is a winner.

Here’s how to tell.

What makes a great mobile app

Not all apps are successful. But those that make an impact have a few qualities in common. Let’s look at a few of the instrumental ones.

1. You need a stellar idea that serves an unmet need

Your app should have utility.

The way to secure that is to ensure that it solves a particular problem and market need. There are three things to consider to find a golden opportunity:

The existing app landscape, the needs of your market, and what you can offer.  

Audit the existing app landscape. Here’s what to look for.

• Check app stores for top apps. What do they all have in common? Also look at underperforming apps. Why do they miss the mark?
• Pinpoint both direct and indirect competitors. How can you differentiate yourself?
• Is there any need that is not being met right now? You may be able to get the first mover’s advantage.
• Purchase and test out applications. Note anything that helps or hinders the user experience.
• Look at app reviews. Pay special attention to the poor reviews.

After going through this process, you may have a

Platform	Pros	Cons
iOS Apps	Quicker and cheaper to build than Android Apps. This is why many companies opt to launch iOS-only apps initially and then expand.
Android Apps

IOS Vs Android: Which is better?

Aspect	iOS	Android
User Base	More engaged and free-spending	Dominates mobile web traffic; wider market penetration
Development Cost	Higher due to frequent updates	Lower cost per install
Development Time	Faster	2-3 times longer
Device Fragmentation	Less fragmented	More fragmented; affects development costs
App Quality	Higher due to stricter guidelines	Varies; fewer updates

Both platforms offer great accessibility.

It comes down to two key things.

1. The tradeoffs you’re willing to make
2. Your target users

Here’s what I mean by tradeoffs.

While Apple has stricter guidelines which make for a higher barrier to entry, that can translate to higher quality and more security for your app.

In that case, you’d have to decide if the higher cost of maintenance is a good tradeoff for quality and security.

The same premise goes for the other features.

Android users spend less, but there’s a far wider user base to tap into.

You can begin to see how your business model and goals for your app will determine which trade-offs are acceptable or not.

The second and most consequential part of the equation is your users.

You’d have to research the behaviors of both Android and IOS users. Then, find which one fits your ideal user.

For example, looking at the chart below, if your primary target marketing is black Americans between the ages of 20-30, it might make sense to go with Android.

Or, for example, if your target market is located in Asia, Africa, or South America, Android is the clear winner.

All things equal, it’s best to make your platform decision based on your target market, so the accessibility of both platforms is fortunate. Costs for both are a lot closer than they used to be, although as we mentioned before, Android still takes a bit longer to develop on average, which usually translates to slightly higher costs.

If you decide to launch to both platforms simultaneously without using a development platform such as BuildFire, you can expect to pay nearly double what you would pay to develop on a single platform. There will be some crossover that lower the cost, but you’ll pay at least 75% more to launch to both platforms.

For platform-specific directions, check out the following guides:

• How To Optimize Your Google Play Store App Listing Page
• The Ultimate Guide To Apple App Store Optimization

Comparison of Developer Options

Developer Type	Pros	Cons
Freelancer	Cheapest option, potential for low-cost app development	Risk of unskilled or uncommitted developers, limited expertise, potential project delays
Small Agency	Team-based approach, quality assurance, cost-effective compared to large agencies	May not handle highly complex apps, potential for some freelancer-associated issues
Large Agency	Extensive experience, brand guarantee, suitable for complex apps	High cost, no absolute guarantee of success

You’ve gotten an overview of your options as far a development goes.

So what’s the verdict?

Ultimately, it depends on the complexity of the app and tradeoffs you’re willing to make.

Just keep in mind that the type of developer you choose will have a significant impact on the amount you pay for your app. And as you will see later in the article, that amount can vary wildly.

Whichever development path you take, you need to screen your candidates with a microscopic eye.

Intellectual Property Protection	Description
Copyright	You can use this to protect the text, visuals, and multimedia from being plagiarized.
Patents	A patent-owner has the right to prevent anyone from duplicating or profiting from his intellectual property. If your mobile app is protectable, you should definitely get a patent to defend your ideas.
Trademark	A patent protects the invention, but a trademark protects the name. If you’ve got a name that sticks, it’s a good idea to protect that.

What if you can’t afford to develop an app?

There’s no denying it.

Developing a mobile app can be incredibly expensive.

But when you think of what it can do to propel your business, it’s hard to give up the idea of building your own app.

The truth?

Even if you don’t have the budget to develop it…

Even if your idea is so grand and complex…

A mobile app is within your reach.

The answer (and one that thousands of businesses have begun using) is to use a custom app builder.

App builders like BuildFire allow you to create a mobile app for your business.

No upfront cost. No development expertise.

For a relatively low monthly fee, you can use your app to serve your business needs.

Option	Cost	Expertise Required
Small App Agency	Minimum of $25,000	Development expertise required
BuildFire Platform	Under $100 per month	No development expertise required

No kidding.

If you are interested in skipping the hassles of upfront development, click here to build your own app for free.