Macstories:
Today, Apple announced that it is reducing the commissions it pays on apps and In-App Purchases from 7% to 2.5% effective May 1st. The iTunes Affiliate Program pays a commission from Apple’s portion of the sale of apps and other media when a purchase is made with a link that contains the affiliate credentials of a member of the program. Anyone can join, but the Affiliate Program is used heavily by websites that cover media sold by Apple and app developers.
While the percentage remains at 7% for movies, music, and books, this does nothing but hurt small publishers, some of who rely on these revenues from Apple’s affiliate program. It means some sites may not be able to continue or will be forced to increase the number of affiliate links to make up the difference. Apple still takes their 30% from developers (affiliate revenues came out of Apple’s share), so this means Apple makes more money and users of affiliate links make significantly less.
Since it’s only apps that are dropping in % I wonder if its a sign of changes to the cut Apple takes from devs coming at WWDC in June.
Apple wouldn’t cut it if it was working.
Pretty consistent with increasing influence by Angela Ahrendts behind the scenes. She showed the fashion industry how to vacuum enormous amounts of money from customers’ wallets while reducing the actual value provided by the “brand” to essentially zero at Burberry. Now working the same magic at Apple.
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I’m interested in learning how Apple arrived at 2.5%. I’d be incensed if my livelihood depending on this revenue stream.
because they don’t
make enough already.
I’ve proposed an alternate idea, where Apple announces a reduction to the developer rate we pay, but has two rates, one for affiliate links that is slightly higher, and the difference is paid to the affiliate.
Full (better) explanation is here: https://www.cerebralgardens.com/blog/entry/2017/04/24/proposed-affiliate-developer-commission-changes
I’m curious what you guys think of that?