4 ms·
It puzzles me that some people still think 30% is a reasonable cut for any kind of online store. Imagine you're 3 guys / girls and working on an app / game / .
by danybittel 6y ago
It puzzles me that some people still think 30% is a reasonable cut for any kind of online store.
Imagine you're 3 guys / girls and working on an app / game / .. whatever and one person only does "distribution" of the final asset. You are working one / two years or more on it, and one person only checks / verifies the final asset and organizes hosting. How is this in any way justified?
And the days that person made any marketing / visibility are long gone.
I think more "fair" is something like 5%, more in the line of what a payment processor does. Which probably, at this point does more than.
- loosetypes 6y agoMasters of Doom described a similar sentiment circa ‘93 only now “tech” are the perpetrators.
- Waterluvian 6y agoA reasonable amount is literally any amount the market will tolerate. Seems 30% nolonger cuts it in any of these stores.
- jokethrowaway 6y agoExactly this, it's harder to make money on the store these days, people can't tolerate high fees anymore
- Dylan16807 6y agoYou need a certain amount of competition before a market can give you a "reasonable" price. The market for phone app stores doesn't meet this bar.
- vmladenov 6y agoMobiHand on BlackBerry, a third-party sales and distribution platform, used to take 40% and fees on top. I stopped working with them long before this incident, but appears that wasn’t enough[1]. When the Apple App Store launched with 70/30 it felt like a very generous offering, and the first-party App World launched with the same split later. [1] https://forums.crackberry.com/developers-lounge-f9/mobihand-payment-668639/index4.html https://forums.crackberry.com/developers-lounge-f9/mobihand-...
- stale2002 6y agoNo, it would not be reasonable if certain participants in that market have a large amount of market power. That is how things like anti-trust law work.
- occamrazor 6y agoFor physical products in physical stores the cut can be higher than 50%. Online referrals can be up to 20%, without the actual distribution.
- danybittel 6y agoThat's a great point, so do the physical stores get 50% of an iphone or ipad sale?
- occamrazor 6y agoFor iPhones and iPads probably much less. For clothing, the margin can be 60%, for toys even more, for books 30-40%. [These figures were approximately true some years ago in Italy]