Do you feel like there’s an opportunity for growth in your web development business?
Rather than simply building more websites, offering mobile app development services can help you scale faster while unlocking additional revenue streams.
Whether you have a small web development agency, a large agency providing multiple services, or you’re a freelance web developer, this may be the most important article you read all year. I’ll explain the value of selling mobile apps, and why it’s the perfect addition to any web development service.
It’s an Easy Upsell to Your Clients
Pitching mobile apps to your clients is much easier if you’re already providing them with app development services. It’s a natural progression for any business seeking new technology and opportunities for growth.
You’ve already done the hard work in securing the client for your web development services.
If your clients trust you and you do a good job delivering on their web development needs, they’ll at least be open to the idea of letting you build them a mobile app. It’s an easy upsell, and you don’t have to worry about pitching cold to someone who doesn’t know you.
We all know that client acquisition can be a struggle—and 37% of agencies say that getting new clients is their biggest challenge and growth barrier.
Plus, you have a 60% to 70% chance of selling services to an existing client but just a 5% to 20% chance of selling to a new prospect.
I personally believe that these chances are even higher when you consider how closely related web and mobile development are. It’s not like you’re trying to sell them on something totally irrelevant, and you already know that they don’t have internal development resources.
Best of all, you know these clients have the budget for development.
If they’re hiring you for web development, you know they aren’t an ankle-biter just looking to use a cheap, DIY website builder. You can safely assume they’ll be happy to pay a professional instead of building an app on their own.
There’s a Strong Demand For Mobile Apps
To clarify, I’m not suggesting that you abandon your web development service. But the data speaks for itself—and it’s clear there’s a higher demand for mobile apps.
The mobile app development market is projected to grow at a CAGR of 13.1% between 2024 and 2032.
Conversely, the web development market will grow at about 8% annually over that same period.
Beyond the growth rate, the mobile development market is valued considerably higher than web development.
Currently, the mobile app development market sits at $195.7 billion globally. This number is expected to eclipse $606.1 billion by 2032. The web development industry is currently valued at $65.35 billion and should reach $130.9 billion in 2032.
The mobile app development market is already valued at more today than the web development market will be worth in eight years.
This is an incredible opportunity for web developers. You can continue providing the services you know in a growing sector while tapping into a new market that’s growing at an even higher rate.
App Development Services Are Highly Profitable
White labeling is the most profitable way for agencies to sell app development services.
Rather than having to hire developers, rent servers, and support the entire backend infrastructure, you can just use a white-label app development platform and re-brand the service as your own.
Leveraging an existing app development infrastructure drastically reduces your costs and results in sky-high profits for your services.
This becomes even more profitable once you start landing clients in the same space or industry.
For example, let’s say a local dental practice hires your agency to build or redesign its website. When you’re done, you pitch them on the value of a mobile app, and they take you up on your offer.
The next time you land a dentist client, 90% of the work has already been done. You can simply clone that first app, make some small content changes to fit the branding of the new client, and you’re basically done.
There’s not going to be much variation between features and functions for these types of apps, which is great news for your profit margins.
You’ll Stand Out From Other Web Developers
The ability to brand yourself as an all-in-one solution for web and mobile app development will ultimately help you close more deals.
It’s so much more appealing for businesses to know they can get multiple services from a single agency. This is a win-win for both of you, as it eliminates the due diligence and vetting phases when the client decides they want to build an app.
Plus, I’m willing to bet that just offering app development will help you land more web development clients—even if those businesses don’t need or want an app right now. Just knowing that they can get it from you later on will give them peace of mind that they’re working with the right partner.
Here’s something else to consider. 45% of agencies get their clients from referrals and word of mouth.
I can’t think of a better way to get referrals and keep people talking than by providing multiple services.
Your clients will be proud to show off their new app, and I guarantee that other businesses will be asking about it.
This can lead to countless new opportunities for your agency.
It Opens the Door to Enterprise Clients
Speaking of opportunities, app development services tend to attract larger businesses and clients with deeper pockets.
Even if those companies have internal IT resources, it’s often cheaper for them to outsource these needs instead of handling them in house.
In fact, 90% of Fortune 500s outsource at least some aspects of their software development needs—and mobile apps fall into this category.
Larger businesses also understand the value of both a strong web and mobile presence. So you’ll be able to deliver each of these services, and build a lasting relationship with them as their needs evolve over time.
It’s also more likely for bigger brands to want multiple apps, like customer-facing apps and internal apps for team productivity.
App Development Services Provide Recurring Revenue
Many web development tasks are one-off jobs that don’t require ongoing assistance. You might create a new website for a client or redesign an existing site, then never hear from them again until they need a new design in five years.
Sure, some of you might be providing a range of webmaster services to retain your clients, but you can only bill for so many hours once the site is functional and running smoothly.
Mobile apps require far more work on a regular basis.
From new features to bug fixes, app store updates, and hardware compatibility changes, you can continue billing your clients on a monthly or annual basis even after the app launches.
This is particularly true if you’re using a white-label reseller platform, like Buildfire, to deliver these services to your clients. You’ll be providing them with the entire backend infrastructure that powers their apps, and this is a service that calls for an ongoing fee.
With Buildfire, you can offer custom subscriptions to your clients and set different monthly rates for specific features.
For example, you may charge extra to support an iPad and Android tablet app. Or you can charge more if your clients want to send push notifications. Client apps with 20,000 users could be paying more than apps with just 2,000 users.
There are so many different ways that you can structure this to set yourself up for recurring monthly or annual revenue—for the lifetime of each app.
Service Diversification Helps Future-Proof Your Agency
There’s no telling what the future holds. New technology and trends are constantly disrupting industries and changing the way businesses operate.
For all we know, AI will be building and redesigning websites for everyone in just a few years and eliminate the need for most web development jobs.
But diversifying your agency services can help reduce risks for these types of changes and unforeseen circumstances, particularly if those services are profitable, in-demand, and in growing industries—three boxes that mobile apps check.
Getting your foot in the door now can help your agency survive in the future and outpace your competitors who were too slow to adapt.
Final Thoughts
Providing mobile app development services to your agency clients is easier than you think. With solutions like Buildfire’s white label program, any web developer can create apps and sell them to clients for high profit margins.
In addition to building and selling mobile apps, you can also white label Buildfire’s app builder and resell that software under your agency’s brand name. This is a great opportunity for those of you who want to target DIY business users by providing a profitable solution at a lower price point.
You’ll get the exact same software that we’ve used to create over 10,000+ successful mobile apps for iOS and Android. Why wait? Get started with Buildfire today to start generating new revenue streams for your web development agency.