Viva La Resistance! Software Developers Leaving Handango?!

[Rocco Augusto]

I just received some breaking news from a very trusted and reliable source. It turns out that Handango's recent <a href="http://www.boygeniusreport.com/2008/02/16/handango-revises-cda-says-screw-you-to-developers/">atrocities against software developers</a> will not be tolerated! For those of you that are unaware, a few months back Handango decided that it was only fair to rape the wallets of the software developers that actually keep their foolish company afloat, raising their revenue shares to a drastic 50% of all software sales! It was bad enough that our beloved Windows Mobile developers were already paying companies such as Handango a fairly adequate size of their software sales revenue but this is downright ridiculous! <br /><br />These actions are so outrageous that I just received an email from one of my most trusted sources, who I will refer to as Batman from here on out, stating that <a href="http://www.soti.net">SOTI</a> - the creators of the highly popular <a href="http://software.smartphonethoughts.com/product.asp?id=6984&amp;n=Pocket-Controller-Pro-V6">Pocket Controller Pro</a> software - are getting ready to call it quits on Handango and pursue options with other vendors! Below is a copy of the email I was sent. I would also like to point out that I have changed all of the names in this email to better suit my sources secret identity. Enjoy!<br /><br /><blockquote> <em><strong>From: </strong>Bruce Wayne<br /><strong>Sent: </strong>March 27, 2008 11:00 AM<br /><strong>To: </strong>'Lucius Fox'<br /><strong>Subject: </strong>Handango Direction<br /><strong>Importance:</strong> High<br /><br />Hi Lucius,<br /><br />I am writing to let you know that I and many other developers are not very happy with the direction Handango is taking these days in terms of the increased revenue share (now at 50%). As a result of these changes SOTI is now at a crossroad and seriously considering switching off HCE and moving to another company to process sales. Developers are talking to each other, and there is now a growing consortium of developers looking to dump HCE, I do not think this is the direction that Handango wants to go in. I hope you guys see the light before it is too late.<br /><br />Regards,<br /><strong><br />Bruce Wayne | SOTI Inc. | Office +1 905 624 5555 x 228626 | [email protected] | <a href="http://www.soti.net">www.soti.net</a></strong><br /><br />MobiControl, Mobile Device Management made easy!<br />Watch the Video: <a href="http://www.soti.net/default.asp?Cmd=Products&amp;SubCmd=MCVideo">http://www.soti.net/default.asp?Cmd=Products&amp;SubCmd=MCVideo</a></em></blockquote>

[zohaer21]

i think developers should have dupped handan(went) long time ago...
their customer support sucks aswell and all they try to do is get more money out of you from whatever angle they can (download protection fee --- WTF ?)

[Larry L]

I have gone out of my way, not to purchase anything from Handango.

I have gone to software developers web sites to purchase software. Only to be sent to Handango for processing. I aborted the purchase and went without the software.

I have purchased dozen's of software from Handango, but now they want to charge me a fee to download the software I have already purchased.

I feel like I am being shacken down by some con artist.

So I use older versions of software, just so I don't have to hand over my money to these people.

I for one hope all business that use these business tacktics to shake down their loyal customers, go out of business.

If any of you developers want to start your own consortium, to sell software, I for one would be delighted.

Larry

[dvdcatalyst]

Same for me.
I've been with Handango for years, and they keep doing what they want.
With DVD Catalyst 3, I shifted my main website for sales towards Clickapps.com/ClickGamer.com and they really are the best of the bunch. What they lack for exposure they make up with response time for questions, high pay-out and they actually treat you as a human being.

I really have no idea what Handango is doing with the 50% they take. Trying to get a response from their developer support team is impossible. After 2 weeks of no response, I try by phone to get in contact with them, and even this is a battle of hours, ending up with random number punching on their phonesystem, because all their "support lines" are pointing to nothing.

Unfortunately, a lot of big companies use the Handango Store as a front for their own. As a result, and me being a tiny developer, moving away from them completely is not possible.

It's the power they hold over small companies, and this is what makes them think they are all-powerfull.

I really wish I could dump them completely, especially for their arrogance, their lack of support and absolutely no care for the developers and their actual customers ("download protection $6")

On a side-note, Motricity (PalmGear, PocketGear etc) is a very close second to handango.

Mitch

[Rocco Augusto]

Same for me.
I've been with Handango for years, and they keep doing what they want.
With DVD Catalyst 3, I shifted my main website for sales towards Clickapps.com/ClickGamer.com and they really are the best of the bunch. What they lack for exposure they make up with response time for questions, high pay-out and they actually treat you as a human being.

Don't forget that we also have an affiliated software store through this site! ;)

[Rocco Augusto]

I would like to point out that for those that were paying attention, I hid a little surprise in that post for you guys! ;)

First person to guess it gets a virtual high five from me :D

[mmidgley]

Is it the reference to "Lucious", a fictional character in the Stargate series that used whatever means he could to convince everyone to do everything for him? (and the parallel being that Handango thinks they can convince all developers to just give in)

m.

[dh]

Doesn't really matter - give it a year or two and we'll all be buying our mobile software from the iTunes store.




Poo, did I really say that?

[benjimen]

Don't forget that we also have an affiliated software store through this site! ;)

You've been anti-Handango for quite a while now -- a shame you use the site to promote your own agenda -- seems like the purpose here is to steer people towards your own store...

[Rocco Augusto]

You've been anti-Handango for quite a while now -- a shame you use the site to promote your own agenda -- seems like the purpose here is to steer people towards your own store...

Not in the least, I was only making a suggestion to a small software developer, who happens to be a reader of our site, that maybe he would want to try to get his software located in our affiliate store, which it actually is, to get that software into the eyes of more customers.

Making money was not the reason why I, or our other Contributing Editors, volunteer our time to bring our readers news on this site. ;)

You are correct though benjimen, I am Anti-Handango due to the very reasons stated in this article. The Windows Mobile development market is pretty tiny and I would rather see our developers flourish in an environment where they can actually make money and in turn bring us more innovative and better software.

What Handango is doing here is harmful and discouraging to developers and I deeply apologize if us pointing that out is offensive to anyone. The point of this article was not to offend people, but to instead make our readers, who are also customers of these developers, aware of the current uphill battle they face.

[Rocco Augusto]

Is it the reference to "Lucious", a fictional character in the Stargate series that used whatever means he could to convince everyone to do everything for him? (and the parallel being that Handango thinks they can convince all developers to just give in)

m.

No, that wasn't the hidden tidbit in this article, but you totally get two virtual high fives for bringing the fantastic Richard Kind into this discussion. Lucius Lavin is one of my all time favorite guest staring Stargate characters :)

If you guys need a hint, it is in relation to phones :cool::D

Poo, did I really say that?

You did dh, and it is sad but probably true :(

Who knows, maybe Apple's recent foray into the world of selling software via iTunes might spark something similar from Microsoft. I wouldn't mind purchasing software from the Zune Marketplace :D

[Darius Wey]

I wouldn't mind purchasing software from the Zune Marketplace :D

Yet I don't think we'll be seeing all-you-can-eat software anytime soon. Rats! ;)

[DoUWanaDance]

Bruce Wayne's extension is 228626. It may be easier to remember if you simply dial "BATMAN."

[stevew]

Doesn't really matter - give it a year or two and we'll all be buying our mobile software from the iTunes store.


It's very sad but very true.

[Tim Williamson]

Doesn't really matter - give it a year or two and we'll all be buying our mobile software from the iTunes store.




Poo, did I really say that?

Wow, yeah, I might have to concur here. Now I wonder if Apple would ever consider hosting Windows Mobile software? :D

[Rocco Augusto]

Bruce Wayne's extension is 228626. It may be easier to remember if you simply dial "BATMAN."

I just don't know how he keeps his identity a secret :D

[pacer1079]

I don't code, but as a customer I can say that I find Handango to be the worst game in town with the best software catalog- and I'm not saying this as a one time customer- I've dropped a lot of money with them over the years (enough to be embarassed to give you (or my wife) specific numbers). Like several of the companies I've "grown up" with on the internet (Audible for example), Handango started out great and in the last two or three years has just become too revenue focused. First they introduced the Handango "wallet" concept, which I bought in to only to find out the credits expired over time. Then came the decision to sell "download insurance" or whatever clever marketing phrase they're using to avoid outright saying we're screwing you for another buck.

In short, I applaud any developer's effort to find another distribution channel- in the last year, I've made a concious effort to buy my software direct from developer websites as often as possible and continue to welcome any alternative to Handango.

[brijgdh]

The advertisement packages on HGO & Motri does not leave anything for the developers as they are forced to sell via their store which takes away 50% ( Excluding tax )

For example one ad worth $400 in a month means you have to sell products worth $1000 atleast to cover the ad cost,commission & tax & after that you actually make some profits. One can have good sales only if the products are in th best selling apps list. Which does not remain for longer as some competitor will follow the suit. Its mullahs for Handango & Motricity, where as a small developer gets nothing in hand even with a good product.

Can any one suggest better

Thanks

BG

Mr. Augusto this is what I see when login into forums.

Welcome, brijgdh.
You last visited: 12-31-1969 at 05:00 PM

[John Cody]

After what they did to me:

http://forums.thoughtsmedia.com/showthread.php?t=20689&highlight=handango+omnisoft

I don't feel sorry for them one bit ;)

[edgar]

I stopped using Handango over a year ago. Their marketing and strongarm tactics are deplorable. I also stopped contributing to boards that use them as affiliates.

Rocco, you should muddle that phone number, some poor guy at Soti is probably getting hangups as they dial that too long extension. Just like dialing 11 digits instead of 10 it rings through to a desk utilizing just the first digits dialed.

[Mike Temporale]

After what they did to me:

http://forums.thoughtsmedia.com/showthread.php?t=20689&highlight=handango+omnisoft

I don't feel sorry for them one bit ;)

Hey John, Your situation is the first thing that came to mind when I read this. Pretty freakin' bad, eh? How can Handango expect developers to take this? Sure, they may be the biggest mobile store, but with actions like this, they won't be for long. 50% - just for processing payment is stupid. :mad:

I think the only way that something like this can work is if a number of the major ISVs all decide to leave Handango at the same time. It's pretty clear that they don't care about the small developer - so it's up to the big guys to help show Handango that they can't push developers around. Without developers, they have NOTHING.

[Catman51]

When they introduced their customer rip-off policy it was one thing, now a developer rip-off. Handango should be going the way of the Edsel, not around anymore.

[Rocco Augusto]

When they introduced their customer rip-off policy it was one thing, now a developer rip-off. Handango should be going the way of the Edsel, not around anymore.

Who knows, maybe they're just trying to see how quickly they can put themselves out of business :D

[auto123456]

Basically, my opinion of the situation is:

The below clause in the handango-developer agreement effectively prevents a developer from offering their product at a lower price on another software shop:

"At no time shall the Software's SRP provided to Publisher be higher than the Software's SRP provided to other distributors."

Thus, even if another software store charged developers only a 20% commission (as oppose to Handango's 50%), the developer can't pass on that 30% savings to consumers because this clause forbids that.

For example, if another software shop only charges a 20% fee, you would think it could work like this:

XYZ app sells for $19.95 on Handango, Handango gets 50% = $9.95 profit to developer

XYZ app sells for $12.50 on ABCshop, ABCShop gets 20% = $9.95 profit to developer

In the above example, the developer would still make the same $9.95 profit, but the consumer would save $7.50 by buying it though ABCShop!

The only way a developer could sell a product for less would be to NOT sell it through Handango. But this would be like shooting yourself in the foot because Handango is the biggest shop and provides the most sales volume to developers. So, the developer has to bite the bullet and charge the same price in all software shops :(

How can another software shop ever be competitive to Handango when the best way to do so (by offering lower prices) is specifically prohibited in Handango's agreement?

Also, because Handango has so many partnerships with cellphone carriers, when a newbie buys a smartphone and selects "purchase software" link, the chances are they are directed to Handango - thus handango gets first sales opportunity for all newbies.

After a newbie gets confortable, they will probably try to find a software store that sells apps at a discount, but because of the above clause, there isn't any. And because all shops charge the same price for the same app, there really isn't any significant incentive for a user to switch from handango.

Handango has the right to charge a premium commission if their market position offers developers higher number of sales. But, I feel that this clause is anti-competitive and Handango is using their market dominance to force developers into agreeing to it.

I feel Handango is in effect dictating the prices that consumers pay for mobile software - thats probably why every shop sells the same app for the same price that Handango sells it for (excluding limited time special offers).

I feel the FTC and other applicable government agencies should investigate this clause to see if it is violating any anti-trust/anti-competitive laws designed specifically to prohibit monopolies from preventing competition.

However, if someone opened up a new software shop that offered 20% off ALL software, EVERYDAY, then the discounted price offered to consumers for an app would NOT be the developers fault, so Handango couldn't scold them under this clause.

Such a shop would have a significant chance to compete against Handango because there would finally be a real reason for users to NOT buy from Handango!

[mga]

Question: Why don't people use PayPal?

The big reason that I can think of is the integration into your website. It isn't ideal to send someone off to another domain to complete the purchase. But on the other hand I believe it has a smaller processing fee than many of the other options.

[PetiteFlower]

I don't know if PocketGear is any better for developers, but I use them because they're much better for consumers. I don't have to pay extra to have an account with them to see what software I've bought in the past, or to re-download files.

[Rocco Augusto]

Question: Why don't people use PayPal?

The big reason that I can think of is the integration into your website. It isn't ideal to send someone off to another domain to complete the purchase. But on the other hand I believe it has a smaller processing fee than many of the other options.

You could do the same with Google Checkout as well.

[benjimen]

At one point I read somewhere (I think it was at the CorePlayer site) that Mobihand was better for developers -- is that still the case...?

[CUShane]

Count me among the developers who have left Handango as well. The 50% commission was the last straw. I've been fighting with them since the end of January to get my 1099 Form for taxes and I finally got it last week. More on my decision to drop them can be found on my blog at http://www.s-church.net/Blog.aspx?ID=338.

I also would heartily reccommend MobiHand. Not only do they give the developers 80% of the sale price on their site, but they will set up a branded store for the developer in 24-48 hours, for free, and the developer gets 90% of the sale through their branded store.

[MikeKey]

I've bought loads of stuff from Handango over the past 5 years or so and seen for myself this trend toward making things difficult and screwing every possible bit of money from me they can.

Hearing about this has been the last straw, I've just asked their "customer care" to remove my profile from their site entirely.

I have all the registration codes for the apps I've bought in the original emails I was sent anyway, and I'll be damned if I'm ever going to re-download any of this stuff if they're going to charge me for the privilege!

One decidedly unhappy (ex)customer.

[expediter]

I always go out of my way to find another vendor to purchase software from. Handango is a last resort for me.

[buckyg]

Guess maybe this is why I hear more about new updates/releases from most of the developers of software I use either directly from them or from sites like this! I used to hit Handango & PocketGear daily to see what's new or updated. Seems like I'm seeing less & less updates/new stuff from the devs I like. Or I see it there well after an email from the developer or in a post on forums like this one.

[maxnix]

As a consumer, I cannot believe that any self respecting developer would consider Handango. Even street prostitutes have more self esteem than sych developers.

Developers, take notice! I and many other do not participate in Handango's predatory schemes. No matter how glorious your software may be, I will not feed the monster that consumes you. You as a community should also ban your prescense on their site.

Have you no self respect? Your clients do!

[pocketpcinfo]

I'm a long time Pocket PC software developer (ISV) and I've sold my software on Pocketgear, Handango, and other various 3rd-party vendor sites. I've also sold software on my own web site using different payment schemes. Over the course of 6-7 years, I decided to stop selling new applications on Pocketgear and Handango because they are charging such high commission rates. They are doing so, because PPC software sales are way down and they are trying to stay afloat. Instead of advertising or implementing a better marketing campaign, they take the easy route and jack up their commission rates without giving the developer any additional service.

So, I suggest every developer spend the time to make their own web site and sell their products directly. With my site, I'm using PayPal as the credit card payment processing system. I've got it up to where everything is fully automatic, and I don't have to do anything when someone purchases a product. Once a customer's credit card is approved, they download the software from my site and cgi scripts will email them the required activation codes for the software. All automatically. All I do now, is answer a few emails each week with customer questions.

What's nice, is that you don't need a PayPal account to purchase software, just a credit card. So what does all this cost? For an $18.00 US transaction PayPal charges me 5.3%. That's it. I can sweep the money that accumulates in my PayPal account to my checking account whenever I want, and it arrives in about 3 days.

I highly recommend software developers to sell their software on their own sites using systems like PayPal. You worked hard to develop your products, so you should reap the benefits.

pocketpcinfo