4 ms·

I'm starting to see a whole bunch of posts/comments about people reacting to losing 30% of their SaaS software revenue but no one seems to be calling out the Ap

I'm starting to see a whole bunch of posts/comments about people reacting to losing 30% of their SaaS software revenue but no one seems to be calling out the Apple contract specifically lists content as defined as magazines, newspapers, books, audio, music, video. So I don't see where the SaaS angst is coming from. Apple can charge 30% for apps and content because the ENTIRE product is being delivered on iOS. They can't charge that cut for SaaS because only a subset of the product is being delivered. Could Apple attempt to take a cut from SaaS products if a user signed up from within your app IN THE FUTURE...sure, but I doubt they'd be stupid enough to try for 30%. Should Apple be compensated in some way for hosting/downloading your mobile app for your SaaS backend...maybe, and I'd be prepared to pay some commission if it drove signups, it might just be a tad lower than 30% though.

bradleyland 16y ago
The argument in your last paragraph is almost exactly what everyone said about Apple's approach to subscriptions. "Apple would be crazy to demand 30% from publishers and distributors. Amazon can't afford 30%!" Yet here we are today, wondering just how the hell everyone is going to carve 30% out of their business model. Anyone who thinks that task is anything even approaching trivial has never run a business.
- lshepstone 16y ago
  I wasn't arguing that Apple won't do it, just that they would be even more crazy to try this for SaaS than for content subscriptions. It's one thing to charge 30% for when someone is selling an entire product through your platform. It would be unprecedented if they tried to charge 30% merely for access from your iOS device to a SaaS app. I think there is a pretty big difference. Lastly, carving 30% out from your list price is pretty common if you're the wholesaler, manufacturer or orignal producer. For most of those scenarios they'll often be able to afford much more than 30%. It's the middlemen and distributors that get really hosed...and unfortunately services that do provide value but licence their content from others are collateral damage.

bradleyland 16y ago

The argument in your last paragraph is almost exactly what everyone said about Apple's approach to subscriptions. "Apple would be crazy to demand 30% from publishers and distributors. Amazon can't afford 30%!" Yet here we are today, wondering just how the hell everyone is going to carve 30% out of their business model. Anyone who thinks that task is anything even approaching trivial has never run a business.

lshepstone 16y ago
I wasn't arguing that Apple won't do it, just that they would be even more crazy to try this for SaaS than for content subscriptions. It's one thing to charge 30% for when someone is selling an entire product through your platform. It would be unprecedented if they tried to charge 30% merely for access from your iOS device to a SaaS app. I think there is a pretty big difference. Lastly, carving 30% out from your list price is pretty common if you're the wholesaler, manufacturer or orignal producer. For most of those scenarios they'll often be able to afford much more than 30%. It's the middlemen and distributors that get really hosed...and unfortunately services that do provide value but licence their content from others are collateral damage.