Recently, YSBM Group has been named one of the Top Mobile App Development Companies by GoodFirms. On the occasion of such a great event, GoodFirms team interviewed Daniel Dan, CEO and co-founder at YSBM.
In the interview, Daniel talked about the company’s values, history, business and payment models, and speciality. He also unveiled some valuable insights into the app development process and strategy.
- Please introduce your company and give a brief about your role within the company?
Hi, my name is Daniel - I'm a CEO at YSBM Group, a European software engineering house based in Krakow (Poland) and Ukraine (Kherson). We provide custom development services and build reliable web and mobile solutions.
- What was the idea behind starting this organization?
The idea began with a passion for creating the best and, even more importantly, the most useful web solutions. Our main goal was to develop truly end-user friendly solutions that could help our customers expand and succeed in their areas. Also, we worked a lot with startups and made the most successful decisions to attract investors.
- What are your company’s business model–inhouse team or third party vendors/ outsourcing?
We are using in-house employees only. I was always sure that success can be achieved only by combining competence, high qualifications, and the motivation of a strong team.
We did our best to complete our team with skilled specialists who possess knowledge in various areas of software development and are absolutely capable of providing the expected result at all its stages. This is largely achieved due to the fact that we pay great attention to improving the special skills of our employees and constantly monitor their KPIs.
- How is your business model beneficial from a value addition perspective to the clients compared to other companies' models?
First of all, our software engineering company solves problems for the most reasonable budget with a comprehensive solution. We work for and with the client and always build our partnerships on the basis of expertise and trust.
We strive to save our customers time and money. They always receive experienced designers, developers, and professional project managers, so that they can avoid mistakes, delays, and always know what will be done and how it will be done. Watching out thoughtful approach and expertise, our clients simply trust us.
- What industries do you generally cater to? Are your customers repetitive? If yes, what ratio of clients has been repetitive to you?
We usually serve small and medium-sized businesses in Hospitality & Real Estate, Healthcare, Logistics, Accounting & Financing, Recruitment & Human Resources, Audit and Inspection industries. We also work with startups and help them create technical documentation, prepare PoC and MVP, as well as provide support during and after the seed investment stage.
Often we develop quite complex software systems that require ongoing technical support and improvement. An interesting fact, quite often we have to correct the mistakes of others. About 40% of our customers came to us after unsuccessful cooperation with other companies. As for recurring clients, without exaggeration, I can say that more than 60% remain with us to work for the next projects.
- Mention the objectives or the parameters critical in determining the time frame of developing a mobile app.
In our case, each mobile app development project is always unique and requires a detailed estimation.
You should keep in mind that the time frame, as well as the project budget, always depends on important factors:
1) Offline functionality. How much a mobile application should be independent of the server.
2) Target platforms. Used technologies play a big role in estimation. There are 4 ways to build a mobile app in this context: iOS only (native), Android only (native), both platforms (native), cross-platform app (frameworks such as Flutter, Xamarin, React Native)
3) Tests. The testing phase can take a long time, depending on the project complexity
We can also include some points that are common to all types of software development (completion of technical specifications, development methodology, changes during development, and more).
- How much effort in terms of time goes into developing the front-end and back-end of a mobile app?
Time varies. It depends on the functional characteristics of the application. In percentage terms front/back, it looks as follows: from 80/20 for simple server applications to 10/90 for applications with complex autonomous functionality (calculations, data/media processing, etc.)
- What are the key parameters to be considered before selecting the right platform for a mobile application?
The right platform is dependent on the target audience of the application. We always recommend creating a web version first, if possible. This allows clients to analyze various metrics, collect the necessary data, and develop a marketing and pricing strategy. As a result, to determine the optimal platform for a mobile app will be much easier.
- Which platform do you suggest your clients to begin with when they approach you with an idea (Android or iOS) and why?
Depends. If we are talking about the European Market, Android is much more popular. And we definitely recommend the iOS platform for the North America Market. In any case, it all depends on the type of audience they address their idea.
- Android or iOS, Native or Hybrid — which platform is best to used to build your app? What are your recommendations?
- The best approach in terms of quality is to use native technologies and develop separate apps. In case of a limited budget or creating PoC (Proof of Concept) for market testing, you can use hybrid technologies (Flutter, Xamarin are more preferable, React Native is a bit worse in terms of quality).
- What are the key factors that you consider before deciding the cost of a mobile application?
Everything depends on the complexity of the project. The cost is based on the number of working hours that mobile app development requires.
- What kind of payment structure do you follow to bill your clients? Is it Pay per Feature, Fixed Cost, Pay per Milestone (could be in phases, months, versions, etc.)
We charge customers for sprints. The sprint payment system seems to be the most convenient for both parties. When the client sees the progress of the project, he knows what he pays for.
Payments are made through standard bank transfers, PayPal, and other payment services.
- Do you take in projects which meet your basic budget requirement? If yes, what is the minimum requirement? If no, on what minimum budget you have worked for?
Our basic project budget starts from $10,000.
- What is the price range (min and max) of the projects that you catered to in 2018?
The price range was from $10,000 to $200,000.
- Which business model do you suggest to your clients enabling them to generate revenue from mobile applications? Why?
The first model we suggest to use is freemium. This model has proven effectiveness. Freemium allows you to attract more users with the basic version of the application and encourages them to continue using the product with advanced functionality.
The next one is virtual goods with in-app purchases (The Additive Model). This kind of monetization strategy allows you to create additional sales channels for your goods or services.
Advertising and sponsorship. The advertiser presents itself to the user audience, while users receive rewards and bonuses, and the application owner receives money from their union.
Paid Apps. This model works best for those applications that have interesting (and even better unique) features, add value to customers, and have strong promotion.
Based on our experience, monetization also depends on the platform. The rule is on the IOS platform you will get fewer downloads, but there will be many more buyers compared with Android. And vice versa.
That's why for Android the best choice will be a monetization model through displaying ads. For iOS, you can start with a paid version of the freemium or in-app model.