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If you don’t plan and track your app development budget properly, you're setting yourself up for failure.
When we developed our strategy pack for app developers, we saw a lot of developers struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial downloads and user engagement.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your app's finances around and set you on the path to success!
Get the budget tracker tailored for mobile apps
Most mobile app developers don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for mobile apps
Here is an example of a (very) detailed budget for a mobile app, to give you some inspiration
1. Development and Maintenance
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| App Development | Initial development and coding | $10,000 | $120,000 |
| Server Hosting | Cloud server costs | $500 | $6,000 |
| API Integrations | Third-party API services | $300 | $3,600 |
| App Maintenance | Bug fixes and updates | $1,000 | $12,000 |
| Data Storage | Database and storage solutions | $200 | $2,400 |
| Security | Security measures and monitoring | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Lead Developer | 1 | $8,000 | $8,000 | $96,000 |
| Backend Developer | 2 | $6,000 | $12,000 | $144,000 |
| Frontend Developer | 2 | $5,000 | $10,000 | $120,000 |
| UI/UX Designer | 1 | $5,000 | $5,000 | $60,000 |
| QA Tester | 1 | $4,000 | $4,000 | $48,000 |
| Project Manager | 1 | $7,000 | $7,000 | $84,000 |
3. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| App Store Optimization | Improving app store visibility | $500 | $6,000 |
| Online Advertising | Google Ads, Facebook Ads, etc. | $1,000 | $12,000 |
| Social Media Management | Managing social media accounts | $800 | $9,600 |
| Influencer Marketing | Collaborations with influencers | $1,500 | $18,000 |
| Content Creation | Blog posts, videos, graphics | $700 | $8,400 |
| Email Marketing | Email campaigns and newsletters | $300 | $3,600 |
4. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Legal Fees | Legal consultations and services | $500 | $6,000 |
| Licenses & Permits | App store licenses, software permits | $200 | $2,400 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Software Subscriptions | Tools and software subscriptions | $300 | $3,600 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $200 | $2,400 |
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What are the biggest expenses for a mobile app?
Watch out for these pitfalls. Here are five major costs every mobile app developer needs to consider, along with some tips on how to manage them effectively.
- Development and design costsThese can consume a significant portion of your budget. You're dealing with skilled labor, and prices can vary based on complexity, platform, and quality. To keep these costs in check, focus on clear project specifications, negotiate better rates with developers, and avoid feature creep. Finally, it's easy to overspend by adding too many features or opting for high-end designs that don’t add enough value.
- Your development teamYour team is your backbone, but paying for their salaries, benefits, and training can be expensive. This cost is always high because you need a certain number of skilled professionals to ensure smooth development and maintenance. You can optimize labor costs by scheduling efficiently, cross-training team members, and monitoring productivity. However, be careful not to underpay or overwork your team, as this can lead to high turnover and poor performance.
- Hosting and server costsReliable hosting and server infrastructure are essential but can add up quickly. To optimize these costs, choose scalable hosting solutions and invest in efficient server management. Overspending often happens when you opt for more capacity than you need or choose premium services that don’t offer proportional benefits.
- Marketing and user acquisitionYou need to get the word out about your app, but advertising can be pricey, whether it's online ads, social media campaigns, or influencer partnerships. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our guide. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Maintenance and updatesThis includes everything from bug fixes to new feature rollouts. These are expensive because regular updates and maintenance are crucial for user satisfaction and app performance. Optimize by investing in thorough testing and efficient update processes to avoid costly issues down the line. You can overspend by frequently adding unnecessary features or not prioritizing critical updates.
How to spend less with your mobile app?
Here are practical tips to help you, as a mobile app developer, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Development Costs | Outsource to skilled freelancers or offshore development teams to reduce costs. |
| UI/UX Design | Use pre-made design templates and customize them to fit your app's needs. |
| Server Costs | Opt for scalable cloud services that allow you to pay only for what you use. |
| Marketing | Run social media campaigns for your app and collaborate with tech influencers for organic reach. |
| Testing | Utilize automated testing tools and beta testers to identify bugs early. |
| App Store Fees | Plan your budget to account for app store listing fees and in-app purchase commissions. |
| Customer Support | Implement a chatbot for initial customer queries and use a ticketing system for more complex issues. |
| Software Licenses | Regularly review and compare software licenses to ensure they meet your current needs. |
| Data Storage | Use cost-effective, secure cloud storage solutions and regularly clean up unused data. |
| Analytics | Choose an analytics platform that offers essential features at a reasonable price. |
| Staff Training | Conduct regular in-house training sessions and use free online resources for skill development. |
| Security | Implement robust security measures and conduct regular audits to protect user data. |
| Technology | Invest in multi-functional development tools and utilize project management software for team collaboration. |
| Legal Fees | Consult with a legal expert to ensure compliance with app store policies and data protection laws. |
| Licensing and Permits | Stay up-to-date with local and international regulations to avoid fines and costly renewals. |
| Transportation | Plan business trips efficiently and use virtual meetings to reduce travel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital documentation. |
| Inventory Management | Use inventory management software to track hardware and software assets. |
| Software Updates | Schedule regular updates and maintenance to keep your app running smoothly. |
| Music and Sound Effects | Use royalty-free music and sound effects to enhance user experience without high costs. |
| Team Building | Organize cost-effective team-building activities to boost morale and collaboration. |
Copy the tactics of the best mobile apps in the world!
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Expenses that are just useless for a mobile app
Yes, some expenses for your mobile app are just unnecessary. They don't contribute to increasing user engagement or improving user experience.
| Mobile App Expense | Reason It's Useless |
|---|---|
| Overly Complex UI | Complicated user interfaces can confuse users and don't necessarily improve user retention. |
| Premium Stock Images | Unless your app is visually driven, most users are satisfied with high-quality free images. |
| Excessive Features | Adding too many features can overwhelm users and increase development costs. |
| High-End Development Tools | Top-of-the-line development tools are not always necessary and can be cost-prohibitive. |
| Traditional Advertising | Paper ads and billboards often have a lower return on investment. Don’t include them in the marketing strategy of your app. |
| Multiple App Versions | Maintaining various versions of the app increases costs without adding significant value to the user experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving app quality. |
| Premium Subscription Services | Expensive subscriptions for analytics or design tools often go unnoticed by users. |
| Exclusive APIs | Using rare APIs can inflate costs and complicate development. |
| Costly Office Space | High-end office space is not always appreciated by employees and can be a significant expense. |
| Custom Branded Swag | Personalized merchandise is a minor detail that most users overlook, and it can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Hosting Services | Most users are content with reliable mid-range hosting, making expensive hosting unnecessary. |
| Extra Office Equipment | Maintaining more equipment than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Updates | Constantly updating the app can be costly and disrupt user experience. |
| Expensive App Icons | Elaborate icons are often ignored by users and add to the cost. |
| High-End Devices for Testing | Luxury devices are prone to damage and expensive to replace, often going unnoticed by users. |
| Excessive Team Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive UI Designs | Frequently redesigning the UI is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid App Store Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Testing Equipment | Specialized testing equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your mobile app!
Managing a budget for a mobile app when funds are tight can feel like a nightmare. It's like being trapped in a cycle where any unexpected expense can derail your progress.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together resources and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest in your app's development and marketing.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of mobile apps just like yours. Get them now!
Make your mobile app more profitable
We have studied the strategies of the best mobile apps in the world. All their tactics are explained in our pack!
