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"The Mac App Store revenue model is consistent with margins any reseller would receive, so I don't think percentage is outlandish or lopsided," he says. Wray of Mariner Software, whose products are also sold on retail shelves, takes a different perspective. There are a few big winners of course, but there are many, many apps that hover near zero in terms of sales," says Kafasis. "I have to wonder if they've actually paid attention to the iOS App Store. But Kafasis doesn't expect that great Mac apps will rise to the top simply because they're good products.
Kafasis notes that some of his colleagues think the Mac App Store will provide invaluable marketing exposure for their products. Apple, on the other hand, does no extra work selling a more expensive application, yet their cut (in raw numbers) gets much larger." Rogue Amoeba CEO Paul Kafasis agrees: "A developer has to do a lot more work providing more features, more functionality.
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"Payment processors such as PayPal and Square charge far, far less than 30%, and even 'storefront' providers like eSellerate – which handles all aspects of the purchasing process, including an integrated store, download hosting, customer support, fraud prevention, and so on – charge more along the lines of 10%." One of those developers is Shirt Pocket's David Nanian. "Some developers may have such a strong investment in technologies that Apple doesn't approve of, or have such a mighty independent marketing operation, that it would be foolish to share 30% with Apple to give up complete control over their products," says Jalkut. That's an awful big nut for Apple, say some developers, compared to what they're paying now to payment processing companies. The Mac App Store is just another arm for us to promote our products to the masses."Īpple's revenue share with Mac App Store developers is the same as its iOS App Store – 70% goes to developers, 30% goes to Apple. We have products in the retail stores, we have direct sales, we have domestic and international distribution, and in 2011, an affiliate network. "We are looking at the Mac App Store as another domestic reseller channel. "I can't say whether the Mac App Store will evolve into an exclusive sales channel for us, or not – it's too soon to tell at this point." "For now, we're treating the Mac App Store as an additional sales channel, because we still offer direct services (upgrade pricing, educational discounts, quantity pricing, site licenses and such) that aren't available from the Mac App Store and many of our customers are accustomed to dealing directly with developers and prefer to continue to do so," says Siegel.
For these experienced Mac developers, the Mac App Store is another way of reaching customers, but not the only one.
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One telling observation is that none of the developers we talk to are ready to publish software exclusively through the App Store. Mariner Software plans to launch six titles on the Mac App Store, according to its President, Michael Wray: "In a nutshell, I guess you could say we are 'optimistically enthusiastic yet slightly unclear' when it comes to the workings of the Mac App Store."
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Second, it's much easier to ensure customers have the latest available software, because it essentially integrates our products into the official Mac OS X 'Software Update' mechanics (which is something developers have been desiring for a very long time now)." "A potential customer who sees our app in the Mac App Store may be more likely to purchase it than if they'd come across it on our website. "First, the Mac App Store represents a 'trusted source' market for our products," explains Bare Bones founder Rich Siegel. The makers of BBEdit and Yojimbo see the Mac App Store as a new, important way of reaching customers. "The store is the biggest opportunity we've ever had, especially us small-time indie developers, to grow our market and reach the millions of new customers Apple is bringing to the platform."īare Bones Software will also be publishing through the Mac App Store. "I do plan to release most of my apps on the Mac App Store, provided Apple is willing to approve them," says Jalkut.
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