How much does it cost to build a web or mobile app?

The 4 Keys to Understanding App Complexity

Every custom web or mobile app, by definition, has never been built quite like that before. If the solution already existed, you could buy it off the self with absolute certainty. It would have a price tag and probably a guarantee. When it’s custom, that is not the case.

Fortunately, we have a framework for thinking about the cost of custom software. Discussing the topic of cost for an app begins with understanding its complexity. Complexity is the largest driver of cost and provides a better framework for thinking about price. The cost of creating an app falls into 4 areas: features, target customer, timeline, and product stage.

• Features
• Target Customer
• Timeline
• Product Stage

App Features

App feature selection is one of the primarily influencers of cost. It’s often thought that feature selection is a linear process, meaning every feature adds to the apps complexity. In reality, new features tend to multiply complexity. The exponential effect is due to how feature interact with each other.

App features are parallel, intersecting, or conflicting. Parallel features don’t touch each other. For example, password reset doesn’t impact your ability to post on Twitter. These are the simplest features to add. Intersecting features touch each overlap in some fashion. Continuing with the Twitter example, this would be posting a tweet and uploading images. Since tweets can exist with or without images, this interaction adds complexity. Conflicting feature are those that work in opposition to one another. User sign-in commonly presents conflicting features. Many services allow users to signup with email or via another service. Since you can only sign-in with one at a time, programing these features creates a tension that must be accounted for.

As outlined in our App Feature Guidebook, we separate features into the following sections.

• Mobile Apps
• Web Apps
• Users
• Money
• Communication
• Content
• Dependability
• Extras Support
• Maintenance

Your Customer

The usual breakdown is B2B (business to business) and B2C (business to consumer). Ultimately, all software is bought and used by humans. The way they buy it, use it, and think about it however, will vary greatly by their mindset. Within B2B, there is a common distinction between SMB (small to medium businesses) and Enterprise products.

Consumer facing apps require a level of polish and interactivity. Enterprise apps usually require increased security and more complex technical considerations.

Who is your target customer?

• Consumer
• Business
• Enterprise

Consumer

Consumer products, especially technology, are usually less expensive or free. The solutions either provide a level of entertainment or solve an issue experienced in ones personal life.

Facebook, Twitter, Instagram, Pinterest, and other forms of social media are great examples of consumer products. Other non-social media examples include Venmo, Waze, and Spotify.

Business

B2B products solve business problems. They either help team members execute their jobs more effectively or facilitate key business functions. They tend to be more collaborative in nature.

Slack, MailChimp, Basecamp, and Zoom are B2B solutions that solve problems like email marketing, project management, and conference calls.

Tools like Evernote and Dropbox have a consumer bent, but use that exposure to drive customers to their business offerings.

Enterprise

Products built for enterprise customers are often subject to more regulation and restrictions. Parts of the software might need to be customized or existing parts of the app might need to be rewritten. This is largely due to compliance or integration with their current, often legacy, systems. Enterprise customer often pay a premium, but their complexity usually requires increased cashflow to service effectively.

Your Timeline

The amount of time allotted for planning, building, and deployment and drastically impacts cost. It’s possible to save time or work faster, but that’s rarely the most cost effective option.

Fixed or Flexible

Is the timeline fixed or flexible? Fixed timelines can add pressure and limitations to a project, usually resulting in increased costs. Flexible timelines can reduce pressure and allow to a helpful level of push and pull when it comes to when and what things get delivered.

This Month? This Quarter? This Year?

Urgency

When will the project launch? Understanding whether the project should launch this month, this quarter, or this year will frame how much time can and should be committed to each part of the project.

Executing compressed timelines isn’t just about budget or quality. More money or team members will eventually have diminishing returns.

Your Product Stage

The stage of the technology you are building will greatly impact price. You should spend less time and budget to prove the concept and more time when rolling out a full fledged product.

What is your product stage?

• Proof of Concept
• Prototype
• MVP
• Version 1

Proof of Concept

A Proof of Concept is anything that allows you to validate the idea. Ideally, they involve little effort but demonstrate the feasibility of an idea.

Prototype

Prototypes are more involved than a Proof of Concept. They allow users to test the design, usability and often functionality of a product or service. Clickable prototypes are an effective, low cost way of demoing a product without having to build something fully functional.

MVP

A Minimum Viable Product defines a software product that contains the minimum number and depth of features to be useful to an initial customer. There is often much gray area when defining an MVP, but the value of focusing on ‘simple enough’ remains a guiding principle.

Version 1

A fully versioned product is a market ready solution. Full products include more robust features but also the technical support to onboard and maintain the product for users. Quality, consistency, and dependability sets V1 of a product apart from an MVP or earlier stage product.

When we discuss cost, money is the prevailing topic that comes to mind. In reality, there are plenty of other costs. Four common cost alternatives to money include time, effort, morale, and opportunity costs. It’s important to make sure you and your team understand what’s most important.