Originally Posted By: tonyc
I dunno. Hosting's cheap, and payment processors like Paypal and Google Checkout don't take anywhere near a 30% vig. Sure, at some point when you get big enough, you'll want to take CC transactions directly, but even then you're nowhere near 30%.

Comparing independent developers to enterprise resellers seems wrong to me. I'll grant that if you're *really* small, it's better to take 70% of a small pie with no overhead, and if you're *really* big, maybe the App Store is a bargain... But it seems to me anyone with monthly sales in the hundreds or maybe low thousands could probably keep more than 90% of their gross by doing it themselves, in which case we're back to how much the App Store is going to increase sales, and, frankly, I don't think the case has been made that it'll make up the difference for the average developer.


IMHO, the biggest value is the gigantic number of users they "bring" to the developer. That is hugely valuable to small operations, I think.

You may be right that a smallish operation can keep their costs below 10% for transactions, possibly, but they'd spend a fortune to get the kind of access that the app store gives them via traditional marketing methods.