Apple slashes affiliate commission rate on apps from 7 to 2.5%

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Comments

  • Reply 21 of 31
    SpamSandwichSpamSandwich Posts: 33,407member
    carnegie said:
    Does anyone know whether the 7% (soon to be 2.5%) commission comes entirely out of Apple's share of App Store proceeds or comes out of developers' shares as well?

    In other words, is Apple paying 23.3% of its 30% for these commissions while what developers get from App Store sales is unaffected? Or, is Apple paying 7% of its 30% while developers are paying 7% of their 70%?

    I suspect it's the former. But if anyone knows for sure, I'd appreciate their sharing their knowledge of the situation.
    It comes out of the 30%. 

    Related: It doesn't really affect us much at AI, but it potentially makes a hard situation of identifying garbage apps and discovering good ones worse, as there's no real way for places like TouchArcade and other focused venues to make a living anymore.
    Judging by the panicked tweets coming from other sites, I take it quite a few were depending on app links for revenue.
    Yes, there are many.
    Rene Ritchie of iMore is just one of many. He seems quite dispirited.
    edited April 2017
  • Reply 22 of 31
    Rayz2016Rayz2016 Posts: 6,957member
    sog35 said:
    Its time to charge Uber 0.5% of all sales on the app.

    Its ridiculous that Uber gross BILLIONS in sales and yet pays Apple $0.

    While struggling app designers have to pay Apple 30% on every App sale.
    Ah, for a minute there you were doing so well.  

    So you think Apple should charge 0.5% on anything sold on Amazon? Or 0.5% of anything bought through the Dominos pizza app?

    It's quite ironic that while putting your portfolio before customers, you often come up with ideas that would eventually  drive Apple into the ground. 


    edited April 2017 StrangeDays
  • Reply 23 of 31

    It is sad for sites that depend on the revenue. I hope they are able to work around this and build another sustainable model.


  • Reply 24 of 31
    SpamSandwichSpamSandwich Posts: 33,407member

    It is sad for sites that depend on the revenue. I hope they are able to work around this and build another sustainable model.


    Yes, hopefully. I understand why Apple would want to keep more of that money, but also appreciate the difficulties such sudden changes represent to those who have become so dependent on that revenue.
  • Reply 25 of 31
    calicali Posts: 3,494member
    sog35 said:
    sog35 said:
    Its time to charge Uber 0.5% of all sales on the app.

    Its ridiculous that Uber gross BILLIONS in sales and yet pays Apple $0.

    While struggling app designers have to pay Apple 30% on every App sale.
    That's not a completely unreasonable demand.
    It really isn't.

    Apple can afford to play hardball. Uber can't.  Not having Uber on the iPhone would be a minor inconvience for about 1% of the iPhone base. But Uber not having iOS customers would destroy 80% of their sales.

    Frankly I'm shocked Cook has not played this card yet.
    Basically what you're saying is any profit generating business that has an app on the App Store should be required to give Apple a percentage of their revenue. Why are you singling out Uber? Should AT&T have to pay Apple a percentage of my monthly DirecTV subscription because I often watch things on my iPhone and iPad using their app?
    His suggestion is very fair especially after breaking Apples EULA.
    I would have kicked Uber the f*** out for spying on my users in my store Then bring in Didi as the default ride hailing app and make Uber the next MySpace with only those broke iKnockoff users supporting them. I see why some miss Steve.
    watto_cobra
  • Reply 26 of 31
    calicali Posts: 3,494member
    Soli said:
    macgui said:
    ronn said:
    How nice of them to give an entire week's notice.
    Does this change affect you?
    How is that even relevant and why do you care?
    Who the hell asked you?
    You asked him.
    And who asked you?





    (click "show previous quotes" for maximum effect)
    edited April 2017 StrangeDaysSoli
  • Reply 27 of 31
    cfccfc Posts: 13member
    This will probably affect small app developers as well as websites.  The fewer places there are that review or mention apps then the harder it is for users to discover them, and the less sales developers will get.  

    Even if Apple reduces their take from 30% at WWDC (as some people are guessing), then I’m guessing that most indie developers would still be worse off.
  • Reply 28 of 31
    ronnronn Posts: 653member
    ronn said:
    How nice of them to give an entire week's notice.
    Does this change affect you?
    No.

    I have a couple acquaintances that are developers and I know some developers depend on affiliate programs to supplement their income. As do a lot of websites. Such short notice is atypical of Apple and a rather sh*tty thing to do on such short notice.   
  • Reply 29 of 31
    SpamSandwichSpamSandwich Posts: 33,407member
    ronn said:
    ronn said:
    How nice of them to give an entire week's notice.
    Does this change affect you?
    No.

    I have a couple acquaintances that are developers and I know some developers depend on affiliate programs to supplement their income. As do a lot of websites. Such short notice is atypical of Apple and a rather sh*tty thing to do on such short notice.   
    I can't say it's "out of character" for Apple as they've been known to change strategies on a dime before.
  • Reply 30 of 31
    wbeemwbeem Posts: 5member
    After reading the news about the drop in return, I decided to remove iTunes affiliate banners from my site. A nice bonus for that was over a 2 second improvement in site load time.  iTunes is a hog!

    ronn
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