06-02-2004, 01:52 PM
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Intellectual
Join Date: Sep 2003
Posts: 187
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PocketGear increases its fees
We just got an EMail from PocketGear
They just increased their royalty from 20% to 30% (plus the other charges)
We're thinking of pulling off our software of their web site
We think it's a bye bye to reasnably priced software
We sell a utility like HandyLauncher for 2.99$
We used to get 2$ of the sale (66% to us 33% to them)
Now with their new model selling the same software will go like this
Base price 2.99
CreditCard fees -0.11
Processing fees -0.35
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Total 2.53
royality(30%) -0.76
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We get 1.77 (59% for us, 41% to them)
of course the affect is lower on high-priced products
and the difference (in cents) might look small, but the percentage difference is big and this price model change might just be the beggining of more increases
We do all the work (idea, investigation, design, code, debug, marketing, support, ...etc)
They list the software on their web site
and they get almost half the money
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