Why are App Stores charging so much for In-App Purchases?
Recently I've started building apps (again), namely a cross platform game that I personally find pretty addictive.
As part of the potential plans to create revenue from this game (would be nice to get a small return for the development hours, not to mention future updates), I've considered a few possible plans:
- Make the game a paid app
- Make the game free, but put some Ads inside of it.
- Make the game free, but let people buy nice power ups and/or access to extra levels.
I didn't like the idea of blocking access to everyone not willing to buy the game immediately, as I wanted people to try it first.
I also didn't like the idea of putting Ads in the game, this is not an experience I personally enjoy, and it didn't feel right to do that to my users.
The final option is the one I chose to go with, I think it's very fair to give everyone access to the game, not annoy them with Ads, but also let them experience extra features/parts of the game if they wish to.
Looking into in-app purchases, I've come across this startling fact:
Apple charges 30% for ALL In-App Purchases!
What? 30%? I would understand if it were 10%, maybe 15%, but 30% ? I'm not sure I even understand where it's coming from (the website states that "you receive 70% of the purchase price", thank you Apple Almighty)
Oh well, iOS developers already pay through the nose for devices, developer licenses, and so on, I figured Android would give me a better deal.
Checking out the Google Support website, what do I find out?
Google charged 30% for ALL In-App Purchases too!
Ok, it's one thing to charge 30% (as huge as it may be), but it's another thing to match the exact amount that Apple charges.
I don't like this price matching, I don't like it at all.
App Stores should fight to get developers on their platform, I doubt that this 30% makes a significant change to the business of Android or iOS, but I know it is VERY significant for developers.
So hey Google & Apple, how about lowering the In-App profit tax rate?