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July 17, 2024
Salesforce

How much does it cost to build an app for AppExchange?

Estimate your budget to build an app for AppExchange and learn how to minimize the spendings.
mobile application wireframes on a desk

We at Noltic have successfully launched 18+ applications on AppExchange in terms of our product development services, so we understand the capabilities of the Salesforce platform and the questions that arise when considering this path. One of the most common concerns? Cost. That’s why we created this guide to help you navigate the costs, making the process clear and empowering you to make informed decisions for your AppExchange journey.

The role of apps in AppExchange

Apps play a crucial role in the AppExchange ecosystem. They allow businesses to improve their Salesforce setup by adding new features, automating tasks, and increasing productivity. Whether it's a customer relationship management (CRM) app, marketing automation tool, or analytics solution, apps help organizations create a customized Salesforce experience that meets their specific goals.

Moreover, the range of apps on AppExchange serves many industries, business sizes, and use cases. From small businesses needing simple solutions to large organizations seeking advanced integrations, the variety of apps ensures there is something for everyone on the platform.

Factors impacting the cost of building an app

Building an AppExchange app involves various factors that contribute to the overall cost. Let's explore some of the key influencers:

Complexity

The complexity of the app is a key factor in its cost. An app with advanced features, detailed workflows, and deep integration with various systems will need more development time and resources. In contrast, a simple app with basic features will have lower costs.

Design

The app's design also affects the overall cost. Creating an intuitive, user-friendly interface with appealing graphics and a smooth user experience requires skilled professionals and design expertise. Investing in a well-designed app can increase user adoption and satisfaction, leading to better productivity and positive business results.

Development team

The development team's expertise and experience are vital in app development costs. Hiring a team with relevant Salesforce knowledge and technical proficiency can significantly impact the overall budget. Additionally, collaborating with a reputable consulting company, such as Noltic, can provide businesses with access to an experienced team of developers, architects, and consultants, ensuring the successful delivery of the app.

The process of building an app for AppExchange

Now that we have a better understanding of the cost influencers, let's explore the process of developing an app for AppExchange. 

Creating an app for AppExchange requires a detailed and strategic approach. Each phase is crucial for ensuring the app's success in the competitive marketplace, from planning and research to development and testing.

Planning and research

Planning and researching the app's requirements is essential before starting the development. This phase involves conceptualizing the app, identifying key functionalities, and conducting AppExchange market research to understand the target audience and competition. Collaborating with a consulting company like Noltic can help businesses organize this process and ensure a well-defined roadmap.

During the planning and research phase, you need to define the app's unique selling points and value proposition. Understanding the target audience's needs and analyzing market trends can provide valuable insights that shape the direction of the app development process and set a strong foundation for a successful app launch.

Designing the app

The design phase focuses on creating the app's visual elements and user interface. It involves wireframing, prototyping, and iterating to achieve an optimal user experience by working closely with the design team.

Effective app design goes beyond aesthetics and considers usability and functionality. Designers play a key role in translating the app's features and functionalities into a user-friendly interface that enhances the overall user experience. Businesses can launch an app targeting their audience's needs by prioritizing user-centric design principles and incorporating feedback from usability testing.

Developing and testing the app

The development phase brings the app to life. Skilled developers write code, integrate functionalities, and test the app for bugs and usability. Iterative testing and quality assurance ensure a stable and reliable application. Partnering with a development and consulting company like Noltic provides businesses access to a team that excels in this phase, ensuring the app meets the highest standards.

During the development and testing phase, collaboration between developers, designers, and quality assurance teams is essential to locate issues promptly and ensure a top-notch user experience. Thorough testing methodologies, such as automated testing and user acceptance testing, help detect and fix any bugs or performance issues before the launch on the AppExchange platform. Businesses can deliver a powerful and reliable app that meets users' expectations by prioritizing quality assurance in every development process stage.

Becoming an AppExchange partner

Join the Salesforce Partner Program and submit your app for security review and technical validation. Collaborate closely with Salesforce's Partner team to refine your listing and leverage their marketing and sales support to reach a broader audience. Engage actively with the Salesforce community through events, webinars, and user groups to build awareness and gather feedback for continuous improvement. Demonstrating innovation, commitment to quality, and alignment with Salesforce's values enables you to navigate the process and establish a successful presence on the AppExchange platform.

Becoming an ISV partner and listing applications on the Salesforce AppExchange is free, making it an attractive choice for organizations looking to broaden their product range and access Salesforce's extensive user community.

AppExchange fees

When placing your application on AppExchange, you must pay fees, the price of which depends on the chosen monetization model. If your application is free for customers, you won't be charged a security review fee. For paid apps, a one-time security review fee of $2,550 and an annual listing fee of $150.

Businesses are required to remit 15% of their sales revenue to Salesforce AppExchange. This collaboration enables enterprises to integrate their business solutions as add-ons to Salesforce's existing functionalities, expanding service offerings within the Salesforce ecosystem. 

Cost breakdown of building an app for AppExchange

Understanding the cost breakdown is crucial to budgeting and planning. Let's explore its essential components:

Planning and research (Cost: $5,000 - $20,000+) 

This phase involves defining the project scope, gathering requirements, analyzing the market, and researching competitors. While the exact cost depends on project complexity, expect to invest anywhere from $5,000 to over $20,000. Here's how the price can vary:

  • Smaller projects may require less time for scoping and research, keeping costs closer to $5,000.
  • Complex apps or large-scale initiatives involve extensive market analysis, competitor research, and user feedback gathering, potentially pushing costs upwards of $20,000.

Design (Cost: $5,000 - $30,000+) 

Design involves creating graphics, wireframes, prototypes, user interface (UI), and user experience (UX) design. The cost can range from $5,000 to over $30,000 depending on factors like:

  • Design complexity: Simple app interfaces require less effort than apps with intricate features and animations.
  • Number of screens and functionalities: More screens and features translate to more design work, impacting the cost.
  • Design expertise: Hiring experienced UI/UX designers costs more than hiring freelancers with less experience. However, this investment reduces the likelihood of encountering bugs and the need to redesign the app later on.

Development and testing (Cost: $15,000 - $100,000+) 

This phase involves writing code, integrating functionalities, and rigorous testing. Here's a breakdown of cost considerations:

  • Development complexity: Simple apps with basic features will cost less than those with complex functionalities and integrations.
  • Development team experience: More experienced developers will naturally command higher fees, impacting the overall cost.
  • Development location: Outsourcing development to regions with lower development rates can be a cost-saving option.
  • Testing scope: The extent of testing (unit testing, integration testing, user acceptance testing) will influence the overall cost.

A rough cost estimation for building an app for AppExchange 

Phase Cost range Description
Planning and research $5,000 - $20,000+ Define project scope, gather requirements, analyze market, research competitors.
Design $5,000 - $30,000+ Create graphics, wireframes, prototypes, user interface (UI), and user experience (UX) design.
Development and testing $15,000 - $100,000+ Write code, integrate functionalities, and conduct rigorous testing.
Field Service Scheduling Login-Based Access to Field Service planning functions for users with a Contractor license. Mobile workers of contractors using the Contractor license.
Total $25,000 - $150,000+ Can vary depending on project complexity.

AppExchange fees

Fee type Cost Repetitiveness
Security review fee (paid apps) $2,550 One-time fee
Listing fee $150 Annual fee
Revenue Sharing 15% Paid to Salesforce from app sales


Ways to minimize the cost of app Development

While app development for AppExchange may involve significant costs, there are ways to minimize expenses without compromising quality. Here are some strategies:

Efficient planning

Thorough planning and strategic development help prevent scope expansion and unnecessary rework. Precise project requirements, well-defined milestones, and transparent communication with the development team ensure efficient resource use and cost control.

Moreover, conducting a detailed cost-benefit analysis during the planning phase can help identify areas of cost optimization. By aligning the project scope with the budget constraints early on, businesses can avoid costly changes later in the development process.

Choosing the right development team

Collaborating with a Salesforce-certified development team, such as Noltic, can significantly improve the quality and cost-effectiveness of the app development process. Expertise in Salesforce development and a deep understanding of AppExchange's intricacies can help businesses maximize their investment and achieve desired outcomes.

In addition to technical expertise, selecting a development team that follows agile methodologies can contribute to cost savings. Agile practices promote iterative development, allowing for continuous feedback and adjustments, preventing costly rework, and ensuring that the final product effectively meets the business requirements.

Simplifying the app design

A streamlined and simplified app design reduces development efforts and costs. Prioritizing the essential functionalities and avoiding unnecessary complexities can lead to a more cost-effective app development process.

Furthermore, leveraging pre-built components and templates can accelerate the development timeline and reduce custom development costs. By utilizing existing resources and frameworks, businesses can streamline the design process and focus on delivering user value.

Noltic’s experience in developing applications for AppExchange 

Noltic's development team consists of Salesforce-certified professionals with extensive experience building apps for AppExchange. With three successful in-house applications and 15+ AppExchange contributions as outsourced developers with the highest-ranking Salesforce PDO Expert badge, we possess in-depth knowledge of the Salesforce platform, its capabilities, and best practices, allowing us to develop and deploy our projects efficiently. 

Moreover, Noltic's collaboration with our clients went beyond development. We provided ongoing support and maintenance services. This comprehensive approach to app development and support further justified businesses' investment in partnering with us.

Case study: Developing a customizable barcode app 

At Noltic, we collaborated with Gimbal Logic to develop a sophisticated Salesforce product for AppExchange. The project focused on developing an application that integrates smoothly with Salesforce for efficient real estate portfolio management. Our approach involved several key steps:

  • Discovery and planning: We began by in-depth assessing Gimbal Logic's requirements and the specific needs of the target market. We defined the app's scope, functionality, and user experience.
  • Design and prototyping: Our designers created wireframes and prototypes to visualize the app's interface and user interactions. This step ensured the app would be intuitive and user-friendly, meeting the high standards expected on AppExchange.
  • Development: Leveraging our extensive experience with Salesforce, we developed the app using best practices and the latest technologies. The iterative development phase involved regular feedback sessions with Gimbal Logic to ensure the app met their expectations.
  • Integration: We integrated scan code generation and sending images with Salesforce using a third-party REST web service, ensuring smooth data flow and compatibility with existing Salesforce environments. Our team developed custom objects, workflows, and automation to improve productivity.
  • Testing and quality assurance: Our team conducted thorough testing to identify and resolve issues. We performed multiple testing cycles, including unit, integration, and user acceptance(UAT) testing, to ensure the app's reliability and performance.
  • Deployment and support: We prepared the app for AppExchange security testing and launched it on the marketplace. Our support team provided post-deployment assistance to address issues and ensure a smooth transition for end-users.

Our team, consisting of a Salesforce developer, a project manager, and a QA manager, dedicated 1000 hours to this project. This comprehensive process resulted in a Salesforce product that not only met Gimbal Logic's needs but also exceeded their expectations. After uploading to the AppExchange marketplace, the product immediately gained its first 100 clients, and the number continues to rise. The product has also received a 4.84 rating, reflecting its high quality and customer satisfaction.

Conclusion: is building an app for AppExchange worth the cost?

Considering the potential benefits and competitive advantages of building an AppExchange app, the cost becomes a worthwhile investment for many organizations. By leveraging the Salesforce platform capabilities and collaborating with expert development teams like Noltic, businesses can create and launch customized Salesforce solutions that meet their specific needs and drive success.

Ready to employ Salesforce's full potential for your business? Noltic is here to transform your vision into reality. With our extensive experience in delivering custom Salesforce solutions across various industries, we are the partner you need to build your AppExchange app. Our team of over 60 engineers and 10 Salesforce Certified Architects has achieved a 4.9 rating on AppExchange through 110+ successful projects. 

Take the first step towards a game-changing Salesforce solution.

FAQs

Can I build an app for AppExchange with an in-house development team?

Yes, it is possible to build an app for AppExchange with an in-house team. However, it is essential to ensure your team possesses the necessary Salesforce development expertise and experience. Collaborating with a consulting company like Noltic can provide access to a specialized team dedicated to AppExchange app development, ensuring a smooth and efficient development process.

If you want to build an app for AppExchange with your in-house development team, there are some things to keep in mind.

First, your team needs the right skills and experience. Developing for AppExchange requires a strong understanding of the Salesforce platform, including its features, APIs, and security. If your team isn't familiar with Salesforce development, they'll need training or you might need to hire new people.

Thus, to eliminate all related risks, you can approach Salesforce product development outsourcing companies. For example, we at Noltic already successfully delivered 18+ projects for AppExchange and are familiar with all nuances. Collaboration with such companies can save you time and resources compared to building that expertise in-house.  They can also provide project management expertise to keep things on track.

How long does it take to build an app for AppExchange?

The time required to build an app for AppExchange can vary depending on various factors: 

  • The complexity of your app. Simple apps with basic features can be built in a few weeks, while complex apps with many features and integrations can take several months or even longer.
  • Design. A straightforward UI/UX interface will be faster to develop than a custom design with a lot of bells and whistles.
  • The capacity of your development team. A dedicated team working solely on your app will finish much faster than a team juggling other projects.

On top of that, good project management and thorough testing can help keep things on track and avoid delays. That’s why the best way to get a specific timeframe for your app is to talk to a Salesforce development expert.

Can I make money by selling my app on AppExchange?

Yes, you can generate revenue by selling your app on AppExchange. AppExchange provides a platform to monetize your app by offering it to a wide range of Salesforce users. However, it's important to consider factors such as the competitive landscape, pricing strategies, and marketing efforts to maximize your app's revenue potential. 

Here are several steps to evaluate the potential of your future AppExchange app: 

  • Conduct competitor research. Since AppExchange is a rich ecosystem with numerous offerings, you should understand how demanding your app is. Analyze existing apps that address similar problems and identify any gaps or opportunities for differentiation. This will help you refine your app's value proposition and target the right audience.
  • Develop a strategic pricing model. Consider factors like the complexity of your app, the value it delivers to users, and typical pricing for similar solutions on AppExchange.  You can choose between a fixed price, a tiered pricing structure based on features, or even a freemium model with a limited free version and paid upgrades for advanced functionalities.
  • Invest in marketing. While AppExchange offers some level of discoverability, you should actively promote your app by yourself. Utilize various marketing channels like social media, content marketing, and targeted advertising to reach your ideal customer base within the Salesforce community.  

Also, don’t forget about providing a high level of customer support. After all, it’s a key to building a loyal user base and fostering long-term profitable relationships. 

Salesforce is a powerful CRM platform, but its true potential expands through the vast ecosystem of apps available on the AppExchange. Did you know that 71% of Salesforce users leverage AppExchange apps regularly to enhance their CRM experience?  They optimize workflows, automate tasks, and unlock new functionalities, ultimately driving business growth.

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Igor Petrovych
CEO/Co-founder
Noltic's manager of managers, 12x Salesforce certified architect
Oleksandra Petrenko
Content writer
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