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How Much Does it Cost to Start an App Business?

Costs

If you’re thinking about starting an app business, you’re probably wondering how much it will cost. Unfortunately, the answer isn’t as simple as you might think. 

Several factors can influence the cost of starting an app business, including the platform, app type and purpose, and app complexity. This article explores these factors to give you an idea of the typical costs of starting an app business.

 

Factors That Influence the Cost

Numerous factors affect how much it costs to start an app business. If you’re considering creating an app business, keep the following factors in mind.

Platform

The first factor to consider is the platform. Are you going to develop a native app for iOS or Android? Or are you going to create a web-based app? Native apps are usually more expensive to produce than web-based apps because they need to be designed specifically for each platform. For example, an app on Android typically costs about 20-30% more to develop than an iOS app.

App Type and Purpose

Another factor to consider is the type and purpose of your app. Is it a simple utility app or a complex gaming app? The type of app you create will affect how much it costs to develop it. For example, a simple utility app might only take a few weeks to develop, while a complex gaming app could take several months. 

Consider the average costs for each popular app type.

  • Utility app: $5,000-$10,000
  • Gaming app: $10,000-$50,000
  • Business app: $10,000-$100,000
  • Educational app: $10,000-$100,000
  • Entertainment app: $10,000-$100,000

App Complexity

The complexity of your app is also a factor that can influence the cost. For example, if your app has a lot of features and requires a lot of data, it will be more expensive to develop than a simple app.

Length of the Development Process

The length of the development process is also a factor in how much it costs to start an app business. Apps that don’t require much time to develop often cost less than those that take longer to develop.

Marketing

Another factor that can affect how much it costs to start an app business is marketing. If you want to market your app effectively, you’ll need to invest in some marketing tools and services. These can include online advertising, PR, and social media marketing. The typical costs for various forms of marketing are:

  • Online advertising: $5-$10 per day
  • PR: $500-$1000 per month
  • Social media marketing: $500-$1000 per month

Maintenance and Technical Support

If you want to keep your app business running smoothly, you’ll need to invest in maintenance and technical support. This can include regular updates, security patches, and customer support. You can expect to pay $100-$200 per month for these services.

Business License and Insurance

If you’re starting an app business, you’ll need to get a business license and insurance. The cost of a business license varies depending on the state and country in which you operate. However, you can expect to pay around $500 for a business license.

Other Necessary Software and Technology

There are other software and technology costs associated with starting an app business. These can include the cost of a computer, server, and software licenses. The typical cost for these items is $2000-$5000.

Labor

Of course, you’ll also need to factor in the cost of labor when starting an app business. If you’re going to hire a team of developers, designers, and marketers, you need to factor in their salaries. The average salary for these roles is:

  • Developer: $50,000-$100,000 per year
  • Designer: $40,000-$80,000 per year
  • Marketer: $40,000-$100,000 per year

Overhead

If you decide to rent an office space for your app business, you need to factor in the cost of rent and utilities. The typical cost for these expenses is $500-$1000 per month.

 

Typical Costs To Start An App Business

Now that we’ve looked at all the factors that can affect how much it costs to start an app business, let’s look at some typical costs.

Simple App

If you’re creating a simple app with few features, you can expect to pay around $10,000 for the development process. This includes the cost of labor, design, and marketing. Some examples of a simple app include a weather app or a calculator app.

Medium App

If you’re creating a medium app with more features than a simple app, you can expect to pay around $50,000 for the development process. This includes the cost of labor, design, and marketing. Some examples of a medium app include a messaging app or a news app.

Complex App

If you’re creating a complex app with many features, you can expect to pay around $100,000 for the development process. This includes the cost of labor, design, and marketing. Some examples of a complex app include a social networking app or a video editing app.

 

Start Your App Business

Many factors can affect how much it costs to start an app business. Considering all factors, you can expect to pay around $10,000-$100,000 to start an app business. However, the exact cost will depend on the type and complexity of the app you’re creating. Keep this in mind when you’re planning your app business.