Know to Get a Nice ROI on Your Mobile App Before Development
Having a mobile app for the iPhone, Android, or one of the many tablets like the iPad is a great nice-to-have, but it’s far from a must for most businesses. Despite what some too-good-to-be-true offers are out there, the truth is that apps are not an inexpensive endeavor.
When starting to build your app, or more importantly while still in the planning stages, know exactly what your ROI is going to be and what the real costs are. First and foremost, after you know how you want to make money from the app, you need to understand that prices to build apps start at $5,000. That’s the bare bones minimum. Now, take into consideration the updates and bug fixes, the enhancements once the next generation of higher-resolution screen phones comes out, and the marketing of the app, and you’re looking at easily five figures of investment.
Will your app be free, or will you charge? If you charge, how much will you charge? How many apps will you need to have downloaded before you break even? How will you advertise and market your app? What is your cost-per-customer, and does that align nicely with your app pricing model? If you have a free app, will you offer in-app purchase incentives and additions? These are just a few of the many many questions you need to ask yourself and your team before the first line of code is written or even before you make your first call to an app developer.
Plan on your app costing you 3x more over the life of the app than you initially plan and get quoted. Now, how will you make that money back? ROI actually doesn’t have to be cold hard cash. ROI could mean that you receive a great deal of publicity, or it’s an incredible enhancement to an already desirable product, or it can even be just for internal purposes only and by creating one you can also create a more efficient and less costly way of conducting business operations.
We have a few other posts also dedicated to actual payment for your app and monetizing applications and we urge you to check all of them out using the links below. Just remember that there are always hidden costs with mobile apps and tablet apps, because the market is still going strong and innovation is moving at the speed of sound. If your app is on the market to the public, then you’re going to have to keep up, and keep marketing it, if you want to make a big impact. It’s not impossible. Actually, anything is possible…with the right strategy.