4 ms·
> It’s a huge fat 30% margin Isn't the margin 15% for (what I assume is) a vast majority of sales?
by baal80spam 5y ago
> It’s a huge fat 30% margin
Isn't the margin 15% for (what I assume is) a vast majority of sales?
- osrec 5y agoThat's still incredibly high.
- post_break 5y agoIt only took a threat to get 15%, and if you make enough money you don't get that deal.
- blendergeek 5y agoI always see this comment anywhere the thirty percent is mentioned. The truth is that after Epic's lawsuit, Apple did reduce their cut to 12.5% for smaller players. But for the majority of the App Store's time in existence it had been 30% across the board.
- evanmoran 5y agoYou are right that in practice most people don’t get 1M in yearly revenue, but the 30% is a huge consideration for anyone making a new software business that has a chance to grow past 10 employees. What most successful companies do instead is dodge it by being free with ads (Facebook, Instagram, Amazon, Snap, YouTube, Zillow, etc), baked into an existing subscription business (Office, Google Docs, Basecamp, Netflix, Disney+, Photoshop, 1Password), or they ditch the phones entirely using web, desktop or console platforms instead (Figma, Sketch, most AAA games, most sass companies). The only big companies left are micropayment game companies and that is mostly because casual games are a perfect fit for mobile and it’s worth the 30% to be where the users are.