MY EXPERIENCE BEING AN         INDIE       Mugunth Kumar
Agenda
Agenda• How   the iOS world works?• Calculating   your hourly rates• Hourly   rates around the world
Agenda• How   the iOS world works?• Calculating   your hourly rates• Hourly   rates around the world• Hiring   a developer...
Doing Business
Doing Business• The   world is changing
Doing Business• The   world is changing• The   way we do business is changing
Doing Business• The   world is changing• The   way we do business is changing• Coping   up with changes
Outsourcing
Outsourcing• Hiring      a third party/business to completely manage one or more processes within your company
Outsourcing• Hiring      a third party/business to completely manage one or more processes within your company• Never    d...
iOS development and outsourcing• Is   the iOS app the linch pin for your company?
Distributed teams• iOS   is a specialized skill set.• WithH1Bs locked down severely by US, migration of skilled workers to...
What others say?
tap tap tap (Camera +)• SF   based company• Less   than 10 member team• Programmers  from San Fran, New York, Austria, New...
Tapbots• San   Jose (CA), Flower Mound (TX) and Calagary(Canada)
Mobile Education Store• Company    incorporated in Oregon• Three   member team, Oregon, London and Singapore
Advantages• Lower   operations cost.• Almost   zero dollars for “Office space”• Almost   every dollar is spent on the product
Disadvantages• Close   to zero benefits (Healthcare)
Rates
Rates
Rates• Payments   are either made by hourly or daily rates
Rates• Payments   are either made by hourly or daily rates• Hourly   rates in UK - £60-70 (SGD 120-140)
Rates• Payments   are either made by hourly or daily rates• Hourly   rates in UK - £60-70 (SGD 120-140)• Hourlyrates in We...
Rates• Payments   are either made by hourly or daily rates• Hourly   rates in UK - £60-70 (SGD 120-140)• Hourlyrates in We...
Rates• Payments   are either made by hourly or daily rates• Hourly   rates in UK - £60-70 (SGD 120-140)• Hourlyrates in We...
Daily rates are slightly lower
Daily rates are slightly lower• UK   - £400-450 (SGD 800-900)
Daily rates are slightly lower• UK   - £400-450 (SGD 800-900)• Western   Europe (ex Russia) - €500 (SGD 750)
Daily rates are slightly lower• UK   - £400-450 (SGD 800-900)• Western   Europe (ex Russia) - €500 (SGD 750)• United   Sta...
Daily rates are slightly lower• UK   - £400-450 (SGD 800-900)• Western     Europe (ex Russia) - €500 (SGD 750)• United   S...
Calculating hourly rates - the wrong way
Calculating hourly rates - the wrong way• $8000   per month Investment banker’s salary
Calculating hourly rates - the wrong way• $8000   per month Investment banker’s salary• $8000/22   days = $364 per day
Calculating hourly rates - the wrong way• $8000   per month Investment banker’s salary• $8000/22   days = $364 per day• $3...
Why is this wrong?
Why is this wrong?• Insurance   and healthcare• CPF   (+15%)• Other   perks, 13th month salary, bonus and benefits
Why is this wrong?• Insurance   and healthcare• CPF    (+15%)• Other   perks, 13th month salary, bonus and benefits• Cost  ...
Maids
MaidsFull time$800
MaidsFull time   Weekly maid$800          $250
MaidsFull time   Weekly maid   Spring Cleaning$800          $250            $100
MaidsFull time              Weekly maid       Spring Cleaning$800                      $250                  $100         ...
Drinks
Drinks$10.0 ($0.42)
Drinks$10.0 ($0.42)   $4.0 ($0.66)
Drinks$10.0 ($0.42)   $4.0 ($0.66)   $1.6-$1.8
How much should you charge?• Divide   your yearly salary by a 1000.•A   $120k salary turns out to be around $120 /hr
My Rates• By      Hour US$110*• By      Day SGD 700*•   *Rates are last year’s and are due for revision
Sample Invoice
Choices for employers• Hire   a full time employee• Hire   a consultant on a daily rate• Hire   a consultant on a hourly r...
Hiring costs•6   month contract with a salary of $6500 = $39000• Hiring   costs - $6500• Office    space cost + computer + ...
Cost per year•3   employees (1 for iOS, 1 for server and 1 for UI/UX)• Total   for the company = $250k++
Jobs DB
Jobs DB
So, how much does it really cost to build an app?
So, how much does it really cost to build an app?• Depends   on the app!
So, how much does it really cost to build an app?• Depends      on the app!• It’s   like buying a home
So, how much does it really cost to build an app?• Depends      on the app!• It’s   like buying a home• Youcan buy a HDB f...
So, how much does it really cost to build an app?• Depends      on the app!• It’s   like buying a home• Youcan buy a HDB f...
Preposition Builder•5   months - Approximately 20-30 hrs a month•~   USD 12000
Demo of Preposition Builder
Tense Builder•6   months - Approximately 20-30 hrs a month•~   USD 15000
Demo of Tense Builder
Median price• $7k   lowest• $35k+   highest
Median price
Median price• Cost   of making an app goes higher with iterations
Median price• Cost   of making an app goes higher with iterations• Instagram   - 18 iterations to get it right.
Median price• Cost   of making an app goes higher with iterations• Instagram   - 18 iterations to get it right.• Today, to...
Median price• Cost   of making an app goes higher with iterations• Instagram   - 18 iterations to get it right.• Today, to...
Questions?
My experience as a indie consultant
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My experience as a indie consultant

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  • My experience as a indie consultant

    1. 1. MY EXPERIENCE BEING AN INDIE Mugunth Kumar
    2. 2. Agenda
    3. 3. Agenda• How the iOS world works?• Calculating your hourly rates• Hourly rates around the world
    4. 4. Agenda• How the iOS world works?• Calculating your hourly rates• Hourly rates around the world• Hiring a developer in Singapore• Median costs of an app
    5. 5. Doing Business
    6. 6. Doing Business• The world is changing
    7. 7. Doing Business• The world is changing• The way we do business is changing
    8. 8. Doing Business• The world is changing• The way we do business is changing• Coping up with changes
    9. 9. Outsourcing
    10. 10. Outsourcing• Hiring a third party/business to completely manage one or more processes within your company
    11. 11. Outsourcing• Hiring a third party/business to completely manage one or more processes within your company• Never done for your “secret sauce”
    12. 12. iOS development and outsourcing• Is the iOS app the linch pin for your company?
    13. 13. Distributed teams• iOS is a specialized skill set.• WithH1Bs locked down severely by US, migration of skilled workers to bay area has almost hit zero.
    14. 14. What others say?
    15. 15. tap tap tap (Camera +)• SF based company• Less than 10 member team• Programmers from San Fran, New York, Austria, New Zealand, Palo Alto, Texas and various cities around the world
    16. 16. Tapbots• San Jose (CA), Flower Mound (TX) and Calagary(Canada)
    17. 17. Mobile Education Store• Company incorporated in Oregon• Three member team, Oregon, London and Singapore
    18. 18. Advantages• Lower operations cost.• Almost zero dollars for “Office space”• Almost every dollar is spent on the product
    19. 19. Disadvantages• Close to zero benefits (Healthcare)
    20. 20. Rates
    21. 21. Rates
    22. 22. Rates• Payments are either made by hourly or daily rates
    23. 23. Rates• Payments are either made by hourly or daily rates• Hourly rates in UK - £60-70 (SGD 120-140)
    24. 24. Rates• Payments are either made by hourly or daily rates• Hourly rates in UK - £60-70 (SGD 120-140)• Hourlyrates in Western Europe (ex Russia) - €70-€80 (SGD 110 - 130)
    25. 25. Rates• Payments are either made by hourly or daily rates• Hourly rates in UK - £60-70 (SGD 120-140)• Hourlyrates in Western Europe (ex Russia) - €70-€80 (SGD 110 - 130)• Hourly rates in United States = $120-$150 (SGD 150-190)
    26. 26. Rates• Payments are either made by hourly or daily rates• Hourly rates in UK - £60-70 (SGD 120-140)• Hourlyrates in Western Europe (ex Russia) - €70-€80 (SGD 110 - 130)• Hourly rates in United States = $120-$150 (SGD 150-190)• Hourly rates in Australia - A$120-A$150 (SGD 150-190)
    27. 27. Daily rates are slightly lower
    28. 28. Daily rates are slightly lower• UK - £400-450 (SGD 800-900)
    29. 29. Daily rates are slightly lower• UK - £400-450 (SGD 800-900)• Western Europe (ex Russia) - €500 (SGD 750)
    30. 30. Daily rates are slightly lower• UK - £400-450 (SGD 800-900)• Western Europe (ex Russia) - €500 (SGD 750)• United States - $650 (SGD 800)
    31. 31. Daily rates are slightly lower• UK - £400-450 (SGD 800-900)• Western Europe (ex Russia) - €500 (SGD 750)• United States - $650 (SGD 800)• Australia - A$650 (SGD 800)
    32. 32. Calculating hourly rates - the wrong way
    33. 33. Calculating hourly rates - the wrong way• $8000 per month Investment banker’s salary
    34. 34. Calculating hourly rates - the wrong way• $8000 per month Investment banker’s salary• $8000/22 days = $364 per day
    35. 35. Calculating hourly rates - the wrong way• $8000 per month Investment banker’s salary• $8000/22 days = $364 per day• $364/8 hours = $45 an hour
    36. 36. Why is this wrong?
    37. 37. Why is this wrong?• Insurance and healthcare• CPF (+15%)• Other perks, 13th month salary, bonus and benefits
    38. 38. Why is this wrong?• Insurance and healthcare• CPF (+15%)• Other perks, 13th month salary, bonus and benefits• Cost of office space• Other CTC factors like hiring expenses
    39. 39. Maids
    40. 40. MaidsFull time$800
    41. 41. MaidsFull time Weekly maid$800 $250
    42. 42. MaidsFull time Weekly maid Spring Cleaning$800 $250 $100
    43. 43. MaidsFull time Weekly maid Spring Cleaning$800 $250 $100 $800/30 ($27 a day or $3 an hour)
    44. 44. Drinks
    45. 45. Drinks$10.0 ($0.42)
    46. 46. Drinks$10.0 ($0.42) $4.0 ($0.66)
    47. 47. Drinks$10.0 ($0.42) $4.0 ($0.66) $1.6-$1.8
    48. 48. How much should you charge?• Divide your yearly salary by a 1000.•A $120k salary turns out to be around $120 /hr
    49. 49. My Rates• By Hour US$110*• By Day SGD 700*• *Rates are last year’s and are due for revision
    50. 50. Sample Invoice
    51. 51. Choices for employers• Hire a full time employee• Hire a consultant on a daily rate• Hire a consultant on a hourly rate
    52. 52. Hiring costs•6 month contract with a salary of $6500 = $39000• Hiring costs - $6500• Office space cost + computer + software = $6000• CPF = $5000• Total per employee = $56500
    53. 53. Cost per year•3 employees (1 for iOS, 1 for server and 1 for UI/UX)• Total for the company = $250k++
    54. 54. Jobs DB
    55. 55. Jobs DB
    56. 56. So, how much does it really cost to build an app?
    57. 57. So, how much does it really cost to build an app?• Depends on the app!
    58. 58. So, how much does it really cost to build an app?• Depends on the app!• It’s like buying a home
    59. 59. So, how much does it really cost to build an app?• Depends on the app!• It’s like buying a home• Youcan buy a HDB for $200k or a mansion at Sentosa for $108 million
    60. 60. So, how much does it really cost to build an app?• Depends on the app!• It’s like buying a home• Youcan buy a HDB for $200k or a mansion at Sentosa for $108 million• Lets see some examples
    61. 61. Preposition Builder•5 months - Approximately 20-30 hrs a month•~ USD 12000
    62. 62. Demo of Preposition Builder
    63. 63. Tense Builder•6 months - Approximately 20-30 hrs a month•~ USD 15000
    64. 64. Demo of Tense Builder
    65. 65. Median price• $7k lowest• $35k+ highest
    66. 66. Median price
    67. 67. Median price• Cost of making an app goes higher with iterations
    68. 68. Median price• Cost of making an app goes higher with iterations• Instagram - 18 iterations to get it right.
    69. 69. Median price• Cost of making an app goes higher with iterations• Instagram - 18 iterations to get it right.• Today, tomake an Instagram “clone” it might cost about $50k including server/UI/iOS dev costs
    70. 70. Median price• Cost of making an app goes higher with iterations• Instagram - 18 iterations to get it right.• Today, tomake an Instagram “clone” it might cost about $50k including server/UI/iOS dev costs• Instagram +Path + Clear = $???
    71. 71. Questions?

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