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The example of SalesForce in the article sounds wrong. Apple's 30% fee on subscriptions does not apply to ALL subscription revenue of a publisher, just to the s
by eugmandel 16y ago
The example of SalesForce in the article sounds wrong. Apple's 30% fee on subscriptions does not apply to ALL subscription revenue of a publisher, just to the subscriptions of users who found the publisher in the App Store. Quote: "when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing". If this is true, there is nothing unfair about it.
- bradleyland 16y agoThis assumes that every business model has a 30% margin they can give up to an "agent"; in this scenario, Apple. Many, many businesses operate on less than 30% margins. Because of this, offering an iOS app becomes a loss leader. No, 100% of your user base will not sign up through iOS, but the 30% commission to Apple will dilute your margins on non-iOS sales. The net effect is that any company who operates a direct sales model will see a dilution of their margins, and must bet on the fact that in-app subscriptions will compensate for this in increased sales. There are many scenarios where this makes absolutely no sense.