How to Make a Social Media App
Creating and monetizing a social networking app starts with choosing a feature type, selecting a stack and planning the background, segmenting and niche and evaluating competitors. Basic customization and Premium features are the outcome of SWOT and PEST analysis in forming the business matrix. Disappearing content and 3D volumetric modeling keep subscribers interested. If the MVP feature is enabled, then new functions, AR solutions and installed assets are evaluated using KPIs and metrics.
Digitalization and going online are crucial characteristics in the digital epoch. The average number of social media accounts per inhabitant is 9. Facebook with 2.9 billion users, YouTube with 2.3 billion subscribers, WhatsApp with 2 billion, TikTok and social media app like Instagram, where the number of accounts exceeds the threshold of 1 billion, are the most popular of them. Telegram, the messenger created by Pavel Durov and his team, has grown rapidly in popularity over the past couple of years. The number of Telegram account holders has reached 800 million: it is noted that more than 20 million Americans downloaded the application in the United States in 2022.
Consequently, open source social network (ranging from simple bots to advanced multifunctional services) is emerging as platform where manufacturers, investors and developers are looking for customers. Therefore, the first question that startup founders and idea owners are interested in finding out how the app will be monetized. More simply, what kind of profit is expected.
Let's start with the analyze of selected direction. It includes financial benefits and competitors, prevalence based on geolocation, age of users (economically active age 25-55 years and older). At the stage of business strategy development, you need to formulate and polish the UTP according to the AIDAS principle, plan the expected profit model.
Stack or smart background as a foundation for further advancement
A poor officer is one who has no dreams of becoming a general: it is good to think about further development and improvement at the initial planning stage. For example, at the first level there should be 1000 active users, and in 12-24-36 months - 2, 4, 8 times more. Accordingly, we select the technological stack for this - standard HTML or CSS, JavaScript or Python, MySQL and Laravel.
After registration in the App Store or Google Play, an already developed application needs to be promoted and improved. Development and support are important functions of a reputable project. Keeping your finger on the pulse means analyzing:
The development of simple versions by a team of professional IT and web designers takes relatively not so long. But it is one thing if the application is designed to be installed on budget Android and quite another on Apple's secure iOS devices. For the magic "Apple" you need to choose programming language, frameworks, libraries and compilers much more carefully.
Apps are new competitors to marketplaces
To attract users, you need to find a purpose, interests and beliefs that unite. A common idea, intended for hundreds or thousands of people, won't give results if there is no opportunity to share information, get feedback and receive responses in the community website. In a couple of years, social networks will become as much a marketing tool as part of a b2b marketplace software: the market is predicted to grow by one trillion dollars.
That is why success is possible: the main thing is to make the app convenient and necessary. Start by analyzing popular applications. Some of them allow you to publish text and video content, discuss new products and ideas. Others are aimed at familiarizing and sharing multimedia - milbloggers from TikTok, YouTube, and Instagram have shown how to influence society with short and informative videos.
On forums like Reddit, people discuss ideas and possibilities of implementing a particular technical solution. More often than not, techies gather there: automakers, engineers, microelectric transport assemblers, and UAV creators. Often discussions develop in the topics and getting a high rating during the discussion means gaining respect and attracting customers. Sharing creative solutions, original ideas on Pinterest.
However, if a network is more popular, functionality is richer. It includes:
An indicator of application efficiency is the number of downloads per unit of time (from a day to a year, for the whole period) and the number of active users. Conventionally, one person brings $1-3 or more in a year. If an app is downloaded by 10 thousand people per month, the income for a year can be at least $120,000. On website like Facebook, the average profit is $10-12 per person.
Niche and segment of the app
Before creating an app, you need to analyze the target audience carefully. Ask yourself this question: For whom? Then, what kind of app? Niche and environment play an essential role in making a novelty popular. You should start with your competitors. Look at owner-customer interaction, subscriber communication and scrutinize competitors' TOS.
If the app is highly specialized, its functionality will be simpler than those targeting users from several related segments. Let's say it's about ordering fruits or fish from a specific region. You can make it B2B or B2C, but add logistics to the selection of offers, so that the potential client not only chooses the goods, but also the method of delivery.
Frequently people start with one offer, then expand the niche into two or three sectors. A good example for beekeepers: buying bee packages and mothers, selling honey, royal jelly and pollen, delivery and information about pesticide treatments based on geolocation. To such an application can be added the requests of customers - both small and wholesale, those who need kraft products like cream honey with additives.
A portrait of the target audience, number of customers and targeting settings are needed for monetization
Describe your customers thoroughly. If you have a detailed portrait of your target audience, you will be able to create the best offer for them. Take into account age and profession, geolocation and income, education and family status. Evaluate what apps they use and look at the channels they read. It's one thing if it's a young girl of 25, recently graduated from IT university and now busy with career development, and another - a solid doctor or lawyer with a well-established practice and income over $150,000 per year.
Based on the portrait of the CA, choose what type of income will be. The simplest is In-App advertising. First, more impressions, the higher profit. The subscriber pays nothing, but the money comes from the advertiser. For example, as in a game app - for extra coins or a feature you have to watch a 1-minute advertisement.
You can do the same, for example, in a transportation application - selection and route planning are free, but a mini logo of a restaurant or shopping mall in the area where the client plans to go from or to. Targeted advertising works if the number of subscribers starts at 100,000 thousand.
Big money on serious resources is made by Premium Subscription
Premium Features is the most advanced type of monetization, which is used in the segment of social networks for highly skilled employees in industries. The user gets a free trimmed basic functionality to search for the desired information or person. However, a paid subscription is required to receive notifications, the ability to communicate directly with the right specialist or to look for a job.
Telegram channels work on the same principle. A subscriber learns limited general information - how to calculate an average diet or plan a seasonal menu. If it is necessary to receive an individual diet created specifically for the client, for specific products, it is necessary to pay for a subscription to a closed channel. This rule applies to sales, travel services with hot offers, purchase of limited edition jewelry or fragrances.
SWOT and PEST analysis, formation of the application business model matrix and features of functionality
You can't copy the application completely. It is better to use a SWOT analysis matrix to develop unique offerings and functionality. USP increases the chances that the app will be a success. SWOT strategy allows you to identify strengths and weaknesses, rank them and develop measures to protect against negative factors. PEST analysis completes the picture of external influences by considering political-economic, social and technological components.
The business model of the application should consist of several blocks, which include:
Functionality includes convenient user authorization or the ability to apply anonymously, content uploads (photos, videos with editing), communication with members. Feed and notifications are also a plus, especially if you need to respond quickly to requests or news. Search, reposts and reactions are advanced application elements. Of course, analytics is also needed in the processes of any business, so it is usually connected by default.
3D modeling and ephemeral content as "hooks" for the audience
AI-based bots like ChatGPT that clarify customer needs are added to the app's functionality. Augmented reality allows modeling the interior (for furniture sellers) and exterior of a home (building). Developers and owners of hotels, recreation centers, zoos often arrange 3D tours for customers in such applications. In them, a person can "plan" the installation of furniture, see how a certain route or hotel room looks like.
Ephemeral content that disappears a day after publication also has marketing appeal. It encourages users to check the app more often. For example, showing a new winter clothing collection of 25 stylish variants (trench coat, bomber, down jacket with down) that will disappear in 3 hours is a reason for customers from the Zoomer and Alpha generation to look there. If the model can be bought immediately - it is an additional plus. Admins and moderators are needed on those resources where there is a high probability of spam.
Benefits of outsourcing, pricing options for app development, planning and writing code
To develop an app, find a freelance developer or assemble a team for management purposes. A simple build will help to create a designer: however, the functionality will be limited and scaling is impossible. The project is also outsourced: this is a balanced solution for both parties. The cost of development in this situation depends on the functionality, execution points and terms are negotiated at the start.
This way, Merehead developers set the following prices for building a social network website from scratch:
The development process begins with a marketing assessment, competitor analysis and specification generation. This includes planning the UX and interface for subscribers. After the prototype is created, developers "saw" the code for one or two platforms and set up two-platform targeting. At the same time, testing on module interaction, functionality, loading speed and performance is underway.
AR solutions and assets determine the recognizability of an application
AR solutions in libraries are sandboxes for prototyping and experimentation. A number of components from the library can be easily moved into the application under development. Virtual and augmented reality simplifies development when holographic objects and assets are used. The better the visualization and clearer the interface, the greater the demand for the application.
At the same time, you should not get carried away: even when using perfectly designed components, you should retain your individual style. It is precisely this style that will determine the recognizability of the application. For this reason, some of the assets should be the property of the developer or the customer. It includes the color scheme, visual effects and templates. For the same reason, it is worth paying attention to the choice of code: open code loses to closed code, although at the development stage it is the basis for the creation of startup capital.
Promotion after development, testing and MVP feature inclusion
If the development process is longer and the design and functionality are more complicated, then the final sum is higher. Once the application itself is ready, you need to start promoting it. To save costs for launching and testing the product, we include such a feature as MVP. The minimum functionality fulfills its tasks, but at the same time the developer learns how the client reacts to certain updates or ideas.
Organic promotion is considered the most profitable. Minimal financial outlay, "popular" popularity, but it takes a long time. There is a variant of optimization using ASO, when the application is already published in the store. Using ASO, it is necessary to informatively and attractively present information about the development, add screenshots of working processes. Contextual advertising and attracting milbloggers are also good ways to promote. Frequently, the owner of an application works on an affiliate basis.
Financial analytics of the app by KPIs and metrics
Metrics and reviews show how users react to the app itself and its features. KPI is a criterion for measuring audience engagement and revenue generation. For example, how many users installed and uninstalled the app and after what happened. The activation indicator is important - how quickly productive actions are performed.
Loyal customers are a key resource. The higher the retention rate, the more likely it is that you are doing the right thing. When there is a leak of users who have installed and used the app for a year or more, it's a signal that a mistake has been made. A similar metric is time spent in the app. The number is growing - development is ongoing.
Profitability metrics and KPIs include the price of installation (dividing advertising costs and attracted users), CAC (total costs) and burn rate. The last metric is important for startups whose budgets are usually limited. KPI ARPU is a metric that determines the type of revenue and profit per engaged customer.
Expected cost items when developing a social media mobile app
The overall development plan consists of two parts - for the MVP version and the full version. The difference in terms of the time to complete the stages ranges from 1.5- to 3-fold difference on average. For example, analyzing a business idea and strategic planning takes up to 150 hours with the full version. The same amount of time is spent on single-platform UI/UX. The time-consuming stages are backend (up to 1000 hours) and actual development for iOS or Android. Testing takes 400-500 hours.
For this reason, it is necessary to proceed from how much total time will be spent on the work and multiply it by the hour of work of a specialist. Terms from 1000 to 2500 hours multiplied by the rate in the equivalent of $30-100 per unit of time determine the cost of the project. Therefore, the minimum budget with analysis, development, testing and promotion is $30,000.
The price depends on the location of the developer - if in the US it reaches $250, in the EU it is 1.5-2 times less. The cost of an hour of work of an IT developer in the former CIS countries starts from $30 per hour, making up 20-30% of the labor remuneration of programmers and testers in the USA.
At the stage of a born idea, ask yourself what kind of application you want to create - a simple one or one with rich functionality. The more correctly you define the portrait of the target audience, analyze the expected costs and profits, evaluate the niche and segment, the better targeting and organic promotion will work. The right decision is to outsource the project if you need SWOT and PEST analysis, MVP trial launch, KPI and metrics evaluation, connection of AR solutions, rented and in-house assets.
