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20K price tag is perfectly reasonable to develop a first public beta version of a web application (not too simple, not too complicated).

Web application is much much more then a basic rails scaffold with devise and paperclip. For most of the web apps that we see in beta I'd estimate 200-500 hours of development.

"1st beta" is important here. once you go out to public with your service the real work starts. A web application with real users that is open to public for some time can get way over 1000 hours of development for support, bug fixes, pivoting, new features, operations etc.




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