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From my experience B2C has lower margins. Basically you have to give all for free to get consumer users on board. No one is buying software as a consumer, consu
by ozim 8y ago
From my experience B2C has lower margins. Basically you have to give all for free to get consumer users on board. No one is buying software as a consumer, consumers buy services mostly. Like ordering pizza, and Takeaway.com is going big in Europe. They don't sell app, probably they hire some shop for app development.
Anything in enterprise level costs loads of money. From developer perspective think about all consulting companies which do body leasing. How much companies pay for having hands to work is alone insane. Price for custom B2B development goes really high. Then you have to pay high price or your business is going to loose money in the future. Where consumers don't care, I am not going to loose money because I don't have someones app.
- astura 8y agoI meant potential for higher margins. For my B2B projects I've done, the profit was written into the contract (and was usually around 3%), there was no way to make a larger profit margin, it was agreed upon beforehand and was a done deal. Whereas with B2C you can have something that goes viral and suddenly brings in a ton of money.