At Appster, we understand that proper budgeting is important to any company.
You can’t decide how to monetise any marketing channel until you know how much it is going to cost to develop that channel. Without that information, there is no way for you to predict how to make a reasonable return on your investment.
App development, however, is such a new industry that many companies don’t know how much they should budget when they are ready to enter that segment of the marketplace. What’s worse, the prices people and companies will quote you for app development may vary widely.
In my experience, most clients are rather shocked when
for example, a freelance offshore developer may quote you $500 to develop your app, while a local, experienced developer may charge you much more.
Still others will quote you prices by the hour instead of by the project.
First, I advise you to NEVER agree to pay an app developer or an app development company by the hour. This is a great way to end up throwing your money away. When you hire a developer by the hour, you are encouraging them to waste their time. After all, the longer the job takes, the more money they can charge you. This does not give them any incentive at all to meet your deadlines. Plus, there is virtually no way you can verify the amount of hours they actually worked on your app.
If you hire an app developer by the hour, you should assume that you would end up paying much more than the app is worth. Instead, you should always go with an app developer that will charge you a fixed fee to get the job done. Professional, responsible app development companies know how long it takes to develop an app, and will have no problem quoting you a fixed cost.
As to offshore developers, while their prices are lower they are generally to be avoided. There is a reason that they are inexpensive – they are often inexperienced, take on more work than they can handle, and don’t do beta testing on the apps they develop. This means you’ll get an app with limited functionality, delivered well past your deadline, and often full of bugs and glitches.
Instead you should find a local developer and plan to invested on a fixed rate. That represents a higher initial investment, but will deliver far more value than paying a developer by the hour or choosing a cheap offshore freelancer than you can’t trust.
Logan is in charge of our development consultant team and helps many of our clients take their idea and make it a reality. He’s great at taking complex questions & answers and making them simple; which non-techies love!
If you like this article, download our Whitepaper