Why We refuse to sell via app stores.
There is a twist to the 70:30 Split.
The twist is
:You've some apps on the Appup store. When the total amount EXCEEDS or
EQUALS $ 500, you don't even notice that another level of deduction is
coming up and you expect 500-150(comission)= $350 to be paid to you. But
then, additional TAX is imposed on you. But the question Intel don't
care where you are from? Or who buys the app? Or which country you
(& your company) belong to? Or where your end user is from? the TAX
is deducted and that too at 30 %. So you end up with
less than 350. Now a general calculation would show you some magic.
$500(Your Sale) -$150 (Intel's Revenue split)= $ 350 this is your
amount. Now deduct 30 % from this amount and then it becomes your
amount. Or wait! May be you need to pay transaction charges. Are you out
of USA and still paying taxes to USA Government and want to know about
lower rates of deductions, yes please search IADP Forum and some URL
will lead you to IRS site. So effectively
you end up paying up 30 % to Intel, 30 % to US Tax Dept (whether or not
the Sale is under US territory ) 2-3 % to PayPal as it's the only way of
Payment, plus your local taxes (e.g. Tax on Income). This leads to
68-72% deductions ! Which means you are paying more than gaining. So it
means you are making only 32-28 out of 100. Is it profitable to use the App Store? I doubt.
There is blog post by Lauren Dankiewicz (Intel) on ISVs & Developers : Your Concerns about App Store Sales Models? The Url is : http://software.intel.com/en-us/blogs/2012/04/14/isvs-developers-your-concerns-about-app-store-sales-models/#comment-74471