An Open Letter to Tim Cook Regarding the App Store 70 / 30 Revenue Split
J Thoendell stashed this in Apps
Looking at the numbers reported by independent developers, I think it’s safe to say that Apple’s 30% cut of App Store revenues can have a big impact on their success or failure. For an independent developer, the difference between their gross revenue and their net revenue after Apple’s 30% cut could very well be the difference between being able to work full-time building for the App Store or not. At $100K in net revenues per year, you may be a successful independent developer. At $70K in net revenues per year, your spouse could be telling you to get a day job.
Therefore, please consider changing the App Store 70% / 30% revenue split to a tiered rate, where Apple takes less of the developer’s first revenues. For example, perhaps Apple could take nothing from the first $100K in annual revenue for a developer, and 30% after that. Or maybe Apple could take 10% from the first $100K, 20% from the next $100K, and 30% after that.
This change would be a shot in the arm for Apple’s independent developers, and would allow more people to work full-time on creating software for Apple platforms.