How Much Would It Cost To Develop and List An AppExchange App? : siddhika
by: siddhika
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Knowing the salesforce appexchange pricing and having an overview of development and listing cost is a must for you to decide whether to set up your application with Salesforce or not. Even though you have multiple alternative options for development, the only marketplace that will make these options available to the user base using Salesforce is AppExchange.
Developing and Listing an application is a one-time investment; your anticipation is genuine. Hence, we have narrowed the entire cost into two segments: the development cost and the listing cost.
The development cost of applications depends on multiple factors, such as the features and functionality, customization of visual design, backend infrastructure, and others.
While Appexchange is a widely spread marketplace, it has a vast potential to make your application commercial. But every good thing has a price, and so does the ability to commercialize your application in the AppExchange marketplace. The most considerable upfront cost to get your application listed is $ 2700 involving $ 2,550 for security review and $150 for the annual program fee, payable annually. More detailed information about the process and other ongoing overhead costs are available below in this blog.
Understanding Appexchange
Appexchange is an online marketplace of Salesforce where Salesforce users can find applications and solutions. The appexchange has a vast range of applications from cloud computing to marketing automation, providing a range of prolific apps built on top of Salesforce with an enormous user base. Setting up an app on AppExchange will be profitable for your business but only if launched with the right listing and optimum pricing strategy. From providing opportunities to app-creators to earn in monetary terms from their innovation to business owners in finding the right solution for their businesses.
In an Appexchange, all products are divided based on the type of app, a product collection, an industry collection, and a category. The five types are Apps, Lightning Data, Flow Solutions, Bolt Solutions, and Components. Product collections include Sales Cloud, Commerce Cloud, Marketing Cloud, Service Cloud, and Platform. Industry collections include government, communications, media, education, and retail. Some top app categories include human resources, finance, sales, and enterprise resource planning.
Understanding the Development Cost
“What is the development cost of an app” or “How Much does it cost to develop an application” is not only the most asked question but also the giant trap used by companies to get your information by showing minimal prices, But we all know “you get what you pay for”.
Hence, after thorough market research, here’s an accurate picture of what it takes to build a well-functional and structured application.A significant Salesforce app development starts from $20,000; factors such as MVP functionality, advanced features, custom UI, and application availability on different platforms define the actual cost of application development.
Now we know your next question, how can I optimize this cost and get the maximum out of my available resources?
When you develop an application, there are two choices: hire an entire in-house team or outsource a salesforce appexchange development team.
If you are Confused about which one to choose? Read below and decide what’s best for you.
1. In-House Team
With the in-house team, you will be required to hire a Salesforce business analyst who understands your idea and explains it to your technical team. A Salesforce Technical Lead or Salesforce Architect who will manage the entire team and bring your vision to reality, a team of Salesforce Developers, one or two Quality Analysts, and a similar number of UI/UX Designers. Eventually, the hiring process and the maintenance cost will make the development process more expensive for you. Although, by hiring an in-house team you will have people are working on your project dedicatedly without being involved in any other project.
2. Outsourcing
Hiring an external company such as Product Development Outsourcers or Salesforce Consulting Partners can help you build and list an application at AppExchange. You must follow a few steps to list your app on the Salesforce AppExchange successfully. Here are some points to answer your question about how they are better than an in-house team. These partners have been in partnership with Salesforce for a long and hence have the right experience and expertise to get the development and listing done on time and in-budget. They are well-versed with Salesforce’s rules, customizations, and dynamic license programs and can help you build and list your app without much hassle.
3. Charges of Salesforce
Salesforce is not entitled to receive any payment during the application development. Instead of paying Salesforce, the development cost goes to the developer, Salesforce consulting company, or Product Development Outsourcers. Although once the application goes live, Salesforce receives a percentage share of sales dependent upon your Application license cost. More to this is in the blog below.
If you are still confused about choosing a suitable model for yourself, you can get in touch with our expert team, who can quickly build the right model for you and help you enhance the overall growth possibilities.
AppExchange Listing Cost and Salesforce Charges
Once the development of an application has been taken care of, next in line is making the listing live on Appexchange. As easy as it may sound, the possibility of your application gaining commercial success depends highly on the listing done by you. To make your AppExchange listing live on Appexchange, you must first choose a suitable license program and decide which monetization model works best for you. Once your app is listed on the Salesforce Appexchange, you’ll also need to start working on making your Salesforce Appexchange listing extraordinary. Here are some tips to make your salesforce appexchange listing stand out. Although, before choosing, it is essential to understand different Salesforce partner programs.
Choose the right AppExchange Partner Programme Licence
To be able to monetize your app, you have to sign up for the Salesforce partner program. Now, “What is the Salesforce partner program?”
It is you signing up to share the revenue made by you through your app with Salesforce. It has bifurcated the entire program under two licenses: the ISV force and OEM embedded.
ISV
ISV Force stands for Independent Software Vendor. It is one of the two types of Salesforce app exchange partnership programs and licenses where the application is entirely dependent on Salesforce technology and is exclusively available for Salesforce users only. In the ISVforce license, the partner is expected to pay 15% of sales to Salesforce for using the Salesforce technology and its customer base for their commercial gain.
As the most popular type of partnership, it is chosen by those looking to cater the application as an add-on to existing Salesforce functionality and only to serve Salesforce users.
OEM
OEM Embedded License or Original Equipment Manufacturer is a type of AppExchange Partner Program for applications not dependent on Salesforce technology. These are custom applications available on appexchange and other platforms such as the Google play store or app store. These applications are not just for Salesforce users but also for non-salesforce users willing to use the application as an individual experience rather than just an add-on on Salesforce. One of the significant benefits of getting an OEM Embedded license is that your application is not only limited to Salesforce and hence has the potential to make more revenue and no compulsion to share it with Salesforce.
In this case, Salesforce is entitled to a 25% share of sales made on AppExchange.
Salesforce New Marginal Royalty Band Update 2022
The percentage share of sales entitled to Salesforce has always been 15% on the ISVforce license and 25% on the OEM Embedded license. But back in 2020, a change was made in this model to benefit the app creators or app-seekers.
Applications that once they reach a threshold and start making more than $20 million in revenue, their per cent share entitled to Salesforce will decrease. For ISVforce, it gets reduced to 10% from 15%, and for OEM Embedded license, the per cent share is reduced to 15%.
Detailed Breakdown of the Security Review and AppExchange Listing Fees
Once chosen the correct license and after becoming the AppExchange partner, the next step is to send your solution for an initial security review. If you have a paid application, then Salesforce will charge a security review and listing fees from you. However, if your application faces security vulnerabilities, then Salesforce wil
Hence, a total of $2,700 must be paid to salesforce when applying for an initial security review. After paying $2,550 for the security review fee and $150 for the first-year AppExchange listing fee, you are good to go. These charges include situations such as resubmitting an application after fixing security issues that were discovered in the initial review. In case of enablement of a new version or package of a previously approved application, you are not needed to pay the listing fees again.
Although, be ready to pay an annual fee of $150 for an appexchange listing every year. If you are entitled to any refund, please apply for it before 180 days of payment.
l not charge you again for every follow-up security review.
Wrapping Up!
The cost of developing and listing an application in the appexchange helps in decision-making and further completing the process of listing and development. To start your Appexchange application development process, you require expert advice and consulting from professionals well-versed in the salesforce’s process.
You can refer to our experts for proficient guidance and expertise by signing up for a consultation call.
The post How Much Would It Cost To Develop and List An AppExchange App? appeared first on Cyntexa.
December 09, 2022 at 05:30AM
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