Things to Consider Before you Build Your Mobile App
- Monetization. How will the app benefit your bottom line? Broadly speaking, there are four routes that you could take to monetizing an app. They are:
- using the app to promote an existing business,
- using the app to collect data in hopes of future monetization,
- placing ads on an app, and/or
- selling the app.
This decision will guide absolutely everything about your app development, from the decision on whether to outsource all the way to the specific functions on your app. These decisions also do not need to be mutually exclusive. A common tactic for rookie developers is to make two versions of the app: one free, with ads, and one for sale. The developers can then see which version makes more money, and develop in that direction in the future.
- Outsourcing.There are many good reasons to outsource app development. App developers can be very efficient. They often are aware of advanced development methods. Additionally, many app contractors live in countries with much lower costs of living, and wage expectations, than Canada. Thus, even though they are making a profit, the actual cost to you per hour of time on the app might not be much higher than the opportunity cost of doing the work yourself. As a result, outsourcing is likely the best option for a promotional app. It may even be a good option for simple apps that you believe could be easily marketed. However, if you plan to make a lot of money directly from a new or advanced app, it may be better to make it yourself in order to decrease your overhead. However, even if you choose to develop your app yourself, you may be able to buy source code on the internet for very reasonable prices.
- Market Demand.Check out current app downloads to see what is selling. Try to make one that is similar, but not identical, to current apps.
- Risk Management.App development can be risky. You can put a lot of time and effort into something, and have it not pay off. Think about how much risk you are willing to accept. Could you live if you didn’t get paid for a week’s work? A month’s? Six months’? Don’t gamble with what you can’t afford to lose. You can manage risk by working on many small projects at once, instead of one big and ambitious project. This means that even if one of your ideas doesn’t pay off, it will not bankrupt you.