Who Says 30% Is Fair?

I blame Amazon for anchoring 30% in everyone’s mind.

I won’t recap the history of that. There’s new ground to cover.

Apple said 30% wouldn’t just rent server space at the App Store. Apple would do actual marketing.

So, has anyone been tracking how many of the over 300,000 apps have been marketed by Apple?

How are they earning that 30% aside from basically renting server space and a poor directory listing to everyone?

Do some math here. Let’s just say there are a nice round 300,000 apps to deal with (and “app” is anything in the App Store).

Over the course of one year, Apple would have to market about 822 apps per day.

In the course of a 24-hour period, that’d mean 34 apps per hour would have to be marketed.

So that means each app would get less than half a minute of marketing from Apple in the course of a year.

And that is worth 30%?

Let’s not forget that the number of apps increases every day.

Do the math from there.

Do you still think that’s worth 30%?

Don’t you think you could do a better job for less?

And I’m not singling out Apple here.

There are over 800,000 books at Amazon. What marketing push are they giving those books for their 30% cut? Every single book marketing email I’ve gotten from Amazon is all about the mainstream crap issued by the Big Six of print — who don’t need any marketing. To find out about others, most people turn to the Kindle Nation Daily newsletter. Which isn’t even part of Amazon!

All of the petit capitalists who talk about efficiency in capitalism, this should be your wake up call.

Wake up or STFU.

The math says 30% is just not fair, period.

It’s time to agitate for change.

Previously here:

The Internet Always Wins
Your Tablet Is Just A Brick Without Third-Party Creators
Memo To HP: Content Adds Its Own Value
Apple’s Next Greedy Move: Exclusivity
Apple Is Now Dead To Me
iOS Developers: You’re Next In Apple’s Sights
Apple’s Content-Creator Recruiting Poster
What Apple Looks Like Today
Apple’s Greed Will Keep This Going
All Devices Should Access Everything. Period.
The Day Apple Became Nathan Myhrvold


Filed under Amazon Kindle, Apple: The Company, Digital Overthrow, Digital Periodicals, eBooks: General, Friction, Marketing

6 responses to “Who Says 30% Is Fair?

  1. At least Amazon will kick in some algorithms and show your book around. The “New in books” slots are paid, and Amazon is seriously thinking about opening up to paid ads from indies, too. So 30 plus whatever.

    What are the options? Sell from your own site. Is anybody making a living at that besides Godin?

    Scott Nicholson

    • mikecane

      >>>At least Amazon will kick in some algorithms and show your book around.

      That made me laugh. Yes, at least they do that “People who bought this also bought…” thing.

  2. Pingback: Tweets that mention Who Says 30% Is Fair? « Mike Cane's xBlog -- Topsy.com

  3. mk

    What about the fact that the 30% was pushed on Amazon by the publishers who insisted on the agency pricing? If I remmber correctly, Amazon was more than willing to take a 30%+ LOSS on bestselling new releases because they were trying to sell more Kindles.

    Does Amazon make 30% on titles where they AREN’T limited by the agency pricing? That would be the real question. If they do, at least they are developing their own platform, their own store and making sure they are competitive. Apple’s not even doing that, it sounds like they want 30% so others can develop Apps and platforms and stores for Apple products only.

    • mikecane

      Yes, Amazon takes 30% from those who direct publish. And the Agency Model was instigated by APPLE as a solution to getting publishers on board the iBookstore. Once they agreed to that, they played Apple against Amazon to force Bezos to capitulate to the Agency Model — Macmillan was the hatchet man for that job, even suffering Amazon pulling Buy It Now buttons from all of their books for several days as they went to the mat over it. The Agency Model has driven UP most eBook prices. This is best for the customer? Maybe for APPLE, but not for readers. And given the record Apple has of ludicrous banning, iBookstore is not going to rival any other bookstore any time soon.

      • Ravi

        You’re right that the banning is why the iBookstore won’t succeed.

        It is also the key tell that Apple is no longer interested in letting Amazon, B&N, Kobo and the rest stay on iOS. All of them sell tons of content Apple would ban. Was Apple really going to let it into their store via a side entrance? Were they going to manually review each catalog to figure out what was in and out? I think they expected the question to not come up at all.

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