> AKA Highway robbery and Google doesn't do any better. It should be in the single digits.
Why single digits?
Why single digits?
What's is their cost? When you look at an ebook Apple makes more money then the Author of a book. Most developers don't make a profit but Apple is guaranteed a profit form each purchase. http://alltopstartups.com/2016/03/30/do-apps-still-make-mone...
When the creator makes less then the deliver there is a problem. When the deliver makes money from purchase 1 and the developer might never see a penny after thousands of purchases there is a problem. A developer makes an app that cost her $10,000 and she must sell $14,300 to break even and not make a dime. Apple will make $4,299.
> they keep developing better services, devices, and platforms for devs to use (and, they give some of that away for very cheap or free).
Follow the money and Apple, Google and Valve are making a killing off the backs of creators. The cost of delivery is what 1% if that?
Well, if the cost of delivery and maintenance of these platforms is so low and the charge to developers is so high, why not arbitrage this? Create your own trusted multi-billion hardware/software platform with expedited payment and protection from cheating, and you can cut developers a better deal!
I think you should forget about "hard" costs. They're completely irrelevant to how valuable something is.
And while you're locked into Apple (not that anyone is forcing you - and Apple basically created that whole industry), with Google and Valve, you're free to run your own setup and deal with all the middleman stuff yourself. 30% to hop onto their infrastructure and let them deal with bad payments is a pretty good deal.
In short, you can always tell the people inexperienced in business in these conversations, because they think that 30% is a crushing 'take'. 30% is actually pretty damn good - normally in retail it's what you'd get, rather than what they'd take.
Also, think on the reverse situation. Apple currently makes 0$ on the sale of free apps but obviously these apps have a cost in storage and distribution. ¿What is the "fair" proposition in that case?
That is 100% not true and probably right now Apple makes most of their App Store money from free apps.
98% of Google Play income is from free apps.
https://www.smartappmarketer.com/how-do-free-apps-make-money...
* An upgrade of some sort (often ad removal)
* In-game currency (which may or may not be a defacto requirement)
* A tip to the developer with no added functionality
The fair thing is anything lower than what it is now. Distribution costs have dropped dramatically, and user trust has increased so accepting credit cards on your own really isn't as huge of a deal as it was ten years ago. Visibility is now zero from the App Store as well which was also a benefit back in the early days.
As an app developer, I can tell you that visibility is not zero. If you understand how the store works, there is still excellent money to be made there. The 30% cut isn't outrageous. You just can't be pushing shovelware.
Cost isn't relevant, the commission is because Apple brings X hundred million credit cards to your door and presumably increases sales by at least that much.
> Most developers don't make a profit
Because most apps are garbage?
> but Apple is guaranteed a profit form each purchase. When the creator makes less then the deliver there is a problem. When the deliver makes money from purchase 1 and the developer might never see a penny after thousands of purchases there is a problem. A developer makes an app that cost her $10,000 and she must sell $14,300 to break even and not make a dime. Apple will make $4,299.
Except Apple eats all the credit card fees, server fees (hosts free apps for free), built the platform with an install base of hundreds of millions with a demo that spends more than other platforms etc.
Except that developers have demonstrated with real numbers that that is not always true: https://weblog.rogueamoeba.com/2017/02/10/piezos-life-outsid...
http://bgr.com/2016/07/20/ios-vs-android-developers-profits-...
The bad parts: - No customer data, this is fine, except for when the expectation is that you will host the application for that specific user indefinitely. But this leads into the next point...
- No ability to do customer support - Want to refund a user? We have to tell them to go to Apple. Want to give a user a free subscription month? Can't do that, as subscriptions will just continue to auto-renew on apple's servers. Want to give an existing user a discount on a new app? Can't do that without some super awkward app bundle. Want to even know that a user purchased your app in the first place? I hope you collected an email when they signed up...
- Arbitrary app review process - my company has had an app stuck "in review" for two weeks. We pulled it and resubmitted and it was available later that day. What?
- Search. And now Search Ads. Search highly favors volume over user satisfaction. Have a small user base but impeccably high retention rate? Who cares, we have another app with 10x the downloads and a 2.5 star rating that will rank above you. Also your competitor is buying your app name as a keyword to also bump you down one more slot.
- Subscriptions: They pushed these really hard last WWDC, but in iOS 10.3 users still have to find the subscriptions page buried in settings and use a crappy web view emulating iOS to cancel.
So for "all that" Apple takes 30%...
I appreciate all Apple has done in creating the market, but they need a way to make it actually sustainable for things that aren't SaaS or candy crush clones with in-app currency. Paid apps are dead along with anything wanting to be "pro" level on the iPad. My main issue is that almost all of these things can be fixed with some small changes to how things work. Responding to reviews was a definite step in the right direction, but they still have a ways to go to actually be worth 30% in 2017. There is a reason you can't sign up for Spotify Premium in the iOS app anymore.
If someone is looking at your software within a Store (Apple's, Google's, Valve's, whoever), you've essentially already "won" in terms of likelihood of conversion. You will still have to do some inbound-marketing work up-front to drive the user to that Store-page, but that's way less effort than the several-funnel-step process required to qualify and convince a "cold lead" your app, and your site, and its CC processor, are all safe to interact with, and that your app actually does what it claims to do.
Apple and Google can have their 30%, but only if they allow third party stores to exist just equally.
Competitors to the Mac app store charge in the single digit range, whether it's Paypal or Stripe at about 2.9%, or a more full-service offering like Paddle at 5% + 50c, FastSpring at 5.9% + 95c, or Avangate at 4% - 8%.
Fastspring / Avangate / Paddle are better comparisons, as they also handle license/serial keys, file hosting, subscription management & tax accounting like the Mac App Store does, and have been doing so before the App Store ever existed.
It's also way more than you'll get shipping for XBox or PS4.