“The value of software is not in the lines of code but in the value it creates.” – Unknown
❓ What You’ll Learn
- How to get new clients?
- How to build MVPs fast?
- How will dev shops invest in their clients?
- Why should you offer recruiting services?
- How to help clients automate business tasks?
- How to save the client’s money?
- How to signal expertise?
- How to get predictable revenue?
- How to avoid underpricing your work?
- How to set clear expectations for clients?
- How to lower scope creep?
- How to scale your revenue without spending more time?
- How to lower market risk?
- How to manage multiple projects?
💎 Why It Matters
You can build a software business without technical skills.
🔍 Problem
You’re not a programmer.
You don’t know how to build quality, scalable software.
💡 Solution
Software development services let you focus on your core competency.
Such as brand, sales, distribution, domain expertise and more.
🏁 Players
Software Development Service Providers
- Matt Spear • Offers iOS development services
- Matt Carden • Builds AI apps with ChatGPT API
- ProductCrafters • Builds ideas from scratch
- nocode rebels • Builds custom no-code software MVPs
- Relevant Software • Builds custom web, mobile and desktop apps
- Zeroqode • Builds no-code apps and plugins in Bubble
- JetRockets • Builds custom mobile and desktop software
Developer Marketplaces
- Skilled • Find top freelance developers from Israel
- Codeable • Find expert WordPress developers
- Lemon.io • Connects clients with qualified devs on a per-hour basis
- Remote Crew • Hire a team of pre-vetted developers
- Shepherd • Hire full-time employees from the Philippines and Latin America
- CloudDevs • Hire vetted Latin American remote developers
- Turing • Find deeply vetted developers and teams matched by AI
🔮 Predictions
- Software agencies will use side-project marketing to get new clients.
- Apptension built a SaaS boilerplate.
- Premium Minds built an invoicing engine.
- FullStack Labs built a talent platform with vetted IT professionals.
- The Jed Mahonis Group made a podcast on software development.
- Dev shops will build MVPs with no-code and low-code tools to help clients get to market faster.
- nocode rebels builds custom no-code software MVPs.
- code.store builds custom no-code and low-code MVPs.
- havenocode builds no-code mobile and desktop MVPs in 7 weeks.
- Agencies will invest in clients with ‘Sweat Equity’ by offering dev hours in exchange for ownership.
- Gravitywell invests sweat equity in clients it admires.
- Global Triangles invested in Aguagente via sweat equity.
🛠 How to build Software Development Services
- Build AI apps to help clients automate repetitive and complex business tasks.
- Alpharive builds AI chatbots, analytics apps and more.
- Appinventiv builds AI assistants, recommendation engines and more.
- Helios Solutions builds AI data apps, image recognition tools and more.
- Offer no-code development to help clients get to market faster while saving time and money.
- Offer low-code development to go beyond no-code limitations while keeping faster development cycles.
- Damco builds low-code enterprise apps.
- Netguru does low-code web and mobile app development.
- SunDevs builds low-code apps using Microsoft Power Platform.
🌱 How to grow Software Development Services
- Turn projects into case studies to help prospects see your approach to solving their problems.
- Wolfpack Digital shares apps they developed.
- Cuttlesoft shares web and mobile app case studies.
- Offer free code audits as lead magnets to attract quality prospects.
- TechGenies offers free code audits.
- Accesto offers free code reviews for PHP apps.
- Alliance Software offers free code reviews across 39 points.
- Give talks at conferences to attract new clients. This signals expertise.
- SoftServe talked about building AI apps at GTC NVIDIA.
- BairesDev talked about PHP development at Darkmira PHP Event.
- Kandasoft hosted a session on biotech at the Bio-IT World Conference.
💰 How to monetize Software Development Services
- Sell prepaid packages to get a predictable revenue and workload.
- UnlimitedWP sells 40 and 80-hour packages.
- August 99 sells from 20 to 200-hour packages.
- Charge per hour to lower the chances of underpricing your work.
- DEVY.io has a pay-as-you-go plan for $35 per hour.
- Gun.io charges $70-$200 per hour for mid, senior and lead developers.
- Charge per project to set clear expectations for clients with tight budgets.
- Devlevate charges a custom price per project.
- JetRockets charges $25,000-$1,176,000 per project.
- buildwithflow.io charges $4,000 per landing page and $8,000 for a full website.
🔑 Key Lessons
- The recurring revenue of software development services is not scalable. You’re selling hours.
- Longer-term projects give you predictability. When a short-term project ends, you may start paying salaries from your pocket while looking for new clients.
- Set realistic, measurable goals to lower scope creep. Break down projects into smaller milestones you can measure and add a 50% buffer on top. Do you think it will take 100 hours? Tell your client it will take 150 hours.
😠 Haters
“No-code tools make software development services less relevant.”
Less relevant does not mean irrelevant. No-code development is easier but less powerful. Custom development is more complex but more powerful. One does not exclude the other. They serve different purposes.
“Some clients have unrealistic expectations.”
Explain the project scopes, timelines and limitations early. Educating your clients on the nuance of building their projects can help you deliver products your clients need instead of want.
“Building on top of ecosystems leads to platform risk.”
This also lowers market risk. Bubble, Webflow and Salesforce are not going anywhere soon. What are you afraid of?
“Outsourcing software is dangerous. It’s our key differentiator.”
Many businesses compete on pricing, customer service, distribution or another front. Not software. If software is your trade secret, you should build it yourself. If you’re building common software such as a CRM, it’s more feasible to outsource it.
“If agencies are building and marketing, what is the core competency of the client?”
There’s more to core competencies than building and marketing products. Logistics, sales, customer service and buying power can be part of the client’s core competency.
🔗 Links
- Everyone wants to build a SaaS. But not everyone can code • The thread for this report.
- Project Management Methodologies • 12 popular frameworks for managing development projects.
- MVP vs PoC vs Prototype • Difference between 3 early product stages.
- Building a Report on Software Development Services • The tweet behind this report.
📁 Related Reports
- Productized Services • Offer service packages instead of hours
- Consulting • Guide clients through complex problems
- Fractional Executives • Monetize your expertise on an as-needed basis
- Micro-Consulting • This is a cost-effective way to get help
- Agencies • Help companies solve problems without hiring and managing large teams
🙏 Thanks
Thanks to Inaamul Haq Mansoor, Oleg Kalyta, Maciej Cupial, Uwe Dreissigacker, Stewart Townsend, Nirav Multani and Elie Steinbock. We had a great time jamming on this report.
✏️ Emin researched and wrote this report. Dru researched and edited this report.
📈 What else?
Trends PRO #0129 — Software Development Services has more insights.
What you’ll get:
- 16 Software Development Service Providers (129% More)
- 17 Developer Marketplaces (143% More)
- 11 Predictions (267% More)
- 12 Ways to build Software Development Services (300% More)
- 10 Ways to grow Software Development Services (233% More)
- 7 Ways to monetize Software Development Services (133% More)
- 6 Key Lessons (100% More)
- 13 Links (225% More)
With Trends Pro you’ll learn:
- (📈 Pro) How to boost productivity with AI coding platforms?
- (📈 Pro) How to build products around ChatGPT?
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- (📈 Pro) Why offer DevOps-as-a-Service?
- (📈 Pro) Why use AI website builders?
- (📈 Pro) How to get high-ticket sales with less mental overhead?
- (📈 Pro) How to help clients validate ideas fast?
- (📈 Pro) How to lower competitor risk?
- (📈 Pro) How to monetize your expertise without building software?
- (📈 Pro) How to attract organic leads?
- (📈 Pro) Why join expert directories?
- (📈 Pro) How to build a client flywheel?
- (📈 Pro) How to boost your potential upside?
- (📈 Pro) How to get a predictable cash flow?
- (📈 Pro) How to stop trading time for money?
- (📈 Pro) What are the negative scale effects of agencies?
- (📈 Pro) How to start and scale a software agency?
- (📈 Pro) How to use SEO to get $100,000 deals?
- (📈 Pro) How to protect your interests with legal documents?
- And much more…
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