ISVs & Developers: Your Concerns about App Store Sales Models?

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Developer and ISV feedback on app stores as a software distribution model has been mixed. Some developers love the new model for distributing software and see it as the wave of the future. Others refuse to sell via app stores and feel like the downsides outweigh any of the additional customers that may be won. Many see challenges with the 70/30 revenue split, brand recognition issues, brand awareness concerns, declining ASPs, etc…

What are some of your biggest concerns with app stores? Are any concerns big enough to keep you from selling software via this distribution method? How do you make the decision on which application stores to engage with? Will the emergence of HTML5 help or hurt?


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Comments

Here is another twist to the 70/30 Revenue Split. Once your Sales cross $ 500 (USD), you've to PAY TAX ! ! ! ! ! . OK,let me elaborate. 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= $350 to be paid to you. But then, additional TAX is imposed on you. No matter where you are, no matter who buys the app, no matter which country you (& your company) belong to, no matter where your end user is, 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, which is based on Apple's Revenue Model)= $ 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 60 + % of the amount. Here is a URL of my previous posts
http://appdeveloper.intel.com/en-us/forums/payment-and-us-tax-related-query-very-urgent