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> What's is their cost? Cost isn't relevant, the commission is because Apple brings X hundred million credit cards to your door and presumably increases sales

by Steko 9y ago

> What's is their cost? 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.

matheweis 9y ago
> 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. Except that developers have demonstrated with real numbers that that is not always true: https://weblog.rogueamoeba.com/2017/02/10/piezos-life-outside-the-app-store/ https://weblog.rogueamoeba.com/2017/02/10/piezos-life-outsid...
- Steko 9y ago
  Aside from the fact that I didn't claim it was a universal rule, are we drawing big conclusions from sample size n=1? How about looking at the amount of money developers made from app store vs google play by year? http://bgr.com/2016/07/20/ios-vs-android-developers-profits-app-store-google-play/ http://bgr.com/2016/07/20/ios-vs-android-developers-profits-...
jclardy 9y ago
If we still lived in 2008 this is relevant. But it is now 2017, server costs are so close to zero for an app binary download, and credit card transactions can be had for 2.9% + 30 cents with Stripe. App visibility used to be a bonus, but today your app will get seen by literally no one if you just upload it just because of the sheer number of apps being released every day. And that is only mentioning the "good parts" of being on the App Store. 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.
- derefr 9y ago
  The parent's real meaning behind "bringing credit cards to your door" is not quite addressed by cheap CDNs or Stripe. It's the fact that Apple has gotten these people to sign up for user accounts and pair credit cards to those accounts, and then authorize devices to one-tap purchase your app using those accounts+cards. They've pre-qualified your leads through 95% of the funnel before they get to you. 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.

by Steko 9y ago

matheweis 9y ago

> 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. Except that developers have demonstrated with real numbers that that is not always true: https://weblog.rogueamoeba.com/2017/02/10/piezos-life-outside-the-app-store/ https://weblog.rogueamoeba.com/2017/02/10/piezos-life-outsid...

Steko 9y ago
Aside from the fact that I didn't claim it was a universal rule, are we drawing big conclusions from sample size n=1? How about looking at the amount of money developers made from app store vs google play by year? http://bgr.com/2016/07/20/ios-vs-android-developers-profits-app-store-google-play/ http://bgr.com/2016/07/20/ios-vs-android-developers-profits-...

jclardy 9y ago

If we still lived in 2008 this is relevant. But it is now 2017, server costs are so close to zero for an app binary download, and credit card transactions can be had for 2.9% + 30 cents with Stripe. App visibility used to be a bonus, but today your app will get seen by literally no one if you just upload it just because of the sheer number of apps being released every day. And that is only mentioning the "good parts" of being on the App Store. 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.

derefr 9y ago
The parent's real meaning behind "bringing credit cards to your door" is not quite addressed by cheap CDNs or Stripe. It's the fact that Apple has gotten these people to sign up for user accounts and pair credit cards to those accounts, and then authorize devices to one-tap purchase your app using those accounts+cards. They've pre-qualified your leads through 95% of the funnel before they get to you. 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.