Originally Posted by strobe
1) Bullshit. Most software is sold online, as are most titles. Digital distribution pre-dates brick&mortar and even when most commercial Mac titles were sold in boxes with either floppies or optical media, most were sold by direct mail.
I suspect you don't understand what the phrase "digital distribution" means here. The phrase is implying electronic distribution over the internet, which certainly doesn't predate brick and mortar.
2) 50% included promotion. Apple's ridiculous cur doesn't.
I've been in this business since 1978 when I delivered 8" floppy disks to a local Computerland store in my car. I can assure you that distributors (like Ingram Micro at the time) demand 50 points. Direct sales to retail stores cost you 45 points. And they expected *you* to back this up with your own promotion or they wouldn't carry the title. You're way off base here.
3) The usual rate for billing and distribution is 2-2.5%.
Gee, my credit card processing costs me more than that. If I could get some company to handle all the billing and related processing for the numbers you're quoting, I'd be in heaven.
The largest cut I've found online is 7%. Any higher than that would include some form of advertising which Apple's deal DOES NOT INCLUDE
And exactly what do you get for that 7%? My guess is that they collect the credit card information you send them from your web site and send you a check now and then. Not very impressive compared to what the app store is providing.
And you're completely wrong about advertising. Dude, the app store *is* one big advertisement. People wanting to spend money go there and browse the store looking for things to buy. Without knowing a thing at all about your product, they stumble across it and buy it. What do you think the likelihood is that they'd stumble across your web page accidentally and make an impulse purchase of your product? Not very great. You've got to spend a heck of a lot more than 30% just letting people *know* about your web site so they can go there and order your product. Sure, being in the app store with 300,000 other apps doesn't guarantee that they'll find your app, but millions of people browse that store each day looking for an excuse to spend money. That's worth 30% by itself. And if the developer has a problem with the 30%, no big deal, they can raise their price from $0.99 to $1.99 and come out even farther ahead :-).
30% is a shitty deal and dead in the water for anyone other than possibly iPhone developers who don't have the initiative to figure it out.
I've sold a lot of software through publishers, distributors, and direct sales. 30% is a great deal. You haven't sold much software and accounted for all your costs if you think that 30% is a bad deal.