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Are iPhone app devs getting a raw deal?

We mentioned yesterday a rumor that Apple won't cut a check for iPhone application developers until the dev's share of the sales tops $250. A lot of commenters were upset about this, if it's true: TomWBrowning said "So if you make an app that costs $1 you won't see a penny even if 359 people buy it?"

From the (indie) developer's perspective, this stinks. They've already paid at least $99 just to participate, and now they have to wait until they make (potentially) hundreds of sales before they see a dime from Apple. Will the high barrier for entry discourage truly good app development? Or will it act like a cover charge to keep out the riffraff?

From Apple's perspective, this is just good business sense. It costs money to cut checks and make electronic transfers in quantity. Plus, Apple can aggregate a great deal of interest on all those little sums they have tucked away. Their cut -- effectively -- is probably far more than the advertised 30 percent, depending on how smartly they invest their savings.

The model isn't exactly foreign: Google AdSense makes a great deal of money (on paper, at least) on the backs of smaller sites that don't earn the $100 minimum for Google to cut a check. Some commenters were suggesting that a $50 threshold for iPhone apps would be more reasonable.

In any event, it certainly makes ad hoc distribution look more and more attractive.



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Rumors App Store

We mentioned yesterday a rumor that Apple won't cut a check for iPhone application developers until the dev's share of the sales tops $250....
 

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Martin

BULLSHIT !

the maths just don't make sense.

THINK !

the interests Apple is getting on the delayed payment of those $250 are RIDICOULOUS !

"far more than 30%"

are u kidding ?

this delaying probably gives them an extra 0.0001% !

I'm a developer, if i don't sell enough to be paid $250 i shoot myself.

they (he ?) will get the money eventually, if there really is a developer who sold less than $250 worth of apps.

July 31 2008 at 7:43 PM Report abuse rate up rate down Reply
Greg

Hey are there any developer/product management folk out there who would be willing to talk to me?

July 02 2008 at 2:50 PM Report abuse rate up rate down Reply
Anonymous

This kind of bickery is why jailbroken phones and free, open-source apps are the best way to go.

The jailbreak and iPhone homebrew scene will only get stronger, even after the Store's introduction.

June 30 2008 at 1:04 PM Report abuse rate up rate down Reply
mnit

As the guy who is quoted as making the complaint, I must state that I think it's been overstated. For a tiny tiny dev (such as me) doing it in my spare time and trying to sustain myself as a student in an expensive UK economy, it's just a pain in the arse to have to wait for the total to hit $360 in sales before I can make a claim. Not so much of a pain in the arse that I won't develop. I could just, you know, do with that money.

I hope (maybe even expect) that my app will sell thousands. Tens of thousands. I'm banking on being able to sell my one little useful app for a dollar to a substantial enough percentage of the iPhone user base to make a living, or at least some money on the side.

I don't expect my sales to top out at 360. I could just do with the money. You know, for food and bus fares.

And a massive great FUCK YOU to everyone who has suggested that only big companies make good apps.

June 28 2008 at 9:28 AM Report abuse rate up rate down Reply
4 replies to mnit's comment
Jash Sayani

Apple Dev Program prices will drop after 11th July. And for freeware developers, the fee will be waived off.

June 28 2008 at 5:53 AM Report abuse rate up rate down Reply
harald

now, i don't see the problem, and what's special with the appstore in opposite to any other online plattform, where people can make money -- because it's apple everybody has to rant, or what is it?

you should have a look at other services, like istockphotos, mp3.com (which doesn't exist any more) and every other platfom, where amateurs can earn money, before you rant.

it's everywhere the same -- and why is it? i can tell you:

1. of course the company, which provides the plattform, can make some money, when millions of people don't get paid immediately

2. of course somebody has to pay for the bank-transfer: who shall do it, if everybody want to have it's 1.50$ paid out -- especially, when the people are from all over the world? i'm sure: they again will rant, if they would get only 0.50$ from their 1.50$, because someone has to pay the bill for the transfer.

i wish people would think two seconds about something, before they start to rant.


June 28 2008 at 3:32 AM Report abuse rate up rate down Reply
Steve

With millions of iPhones out there and (soon to be) growing fast you should be able to have sales of at least $250.

June 28 2008 at 2:59 AM Report abuse rate up rate down Reply
kinezo

Umm .. there's a pretty simple solution. The $250 is the set minimum for automatic cheques, but why can't they add an option for a dev to "cash out" at a cost. like $1. That'll should cover the cost of cutting the cheque, and the devs. can get the money when they want. Simple .. no?

June 27 2008 at 11:49 PM Report abuse rate up rate down Reply
Reid

This is no different from most affiliate programs, although $250 is a little high. Amazon and Google AdSense have a $100 threshold, I believe.

June 27 2008 at 7:26 PM Report abuse rate up rate down Reply
JKT

I must say I'm rather surprised how many of you have no problem with this $250 amount. I fully understand and sympathize with there being a lower limit, but why $250? Apple charges $99 to get into the program, so why is what's good for the goose not good for the gander? Also, the claims about it being to prevent the costs of mailing a check are lame. Apple could issue credit towards the ADC program, credit towards the ap store itself, towards iTunes, in Apple Stores, or transfer via PayPal. It's 2008--checks are rare these days so overhead for transferring payment is a ruse--Apple is just trying to get interest on all the $$ they'll be holding onto.

June 27 2008 at 6:44 PM Report abuse rate up rate down Reply
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