I’ve come across some government agencies and other businesses claiming they’d spent millions of dollars developing an app. How can developing an app could cost so much money?
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1. When people say “millions of dollars” it ranges from $2m to $999m, so it’s a big range. Often times it’s an exaggeration to make it sound $999m, but in reality it’s only a few millions.
2. Developing an app requires a team: project manager, front-end and back-end developer, designer, etc. Even those teams needs to get paid, so there’s accountants and even janitorial services to ensure a clean office for the team to work in.
3. There’s also fringe benefits, like medical insurance, dental, life insurance, etc.
4. There’s overhead cost, like paying the utilities to ensure there’s electricity and water so the office runs. Internet connection.
5. Often times #3 and #4 come as a multiplier; so if your salary is $100/hr, then multiplier could be 3x so it becomes $300/hr. So to keep aen mployee active, you’ll need to have $300 for every hour they work. And then multiply that by the number of staff and hours worked.
6. Then there’s server cost, cybersecurity, bug/patch updates.
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