Tag Archives: Apple

On Apple’s 30% Cut

by on 16. Feb, 2011 in Apple

I’m really surprised at the reaction to Apple’s Subscription Model.
I’m a fan boy, but I’m a businessman first, It’s seriously not an Apple thing – I teach people every day to build communities of people interested in the same thing, provide AWESOME products and services and most importantly GET PAID.

I think it’s totally congruent that should you wish to market into a community someone has created you pay the person a fee! This is not something Apple invented, it occurs everywhere from Baseball to your Local Supermarket!


Supermarkets not only get a margin on the products they sell, they charge the product owner for the shelf space it sits on!!


Why is no one calling for Walmart to be subject to an anti-trust action. Seriously, Walmart gets traffic into their stores, suppliers pay (AND PAY!) for the privilage of having a product on the shelves!


Why do the product suppliers, subject themselves to this “horrible market abuse”

Because they have the traffic.

If no one see’s your product, no one is going to buy your product.


I know, I’m a genius…

I can’t see getting worked up about a business model that rewards people for building a community. Apple has built a massive community with the potential for excellent reward but perhaps more importantly they have solved some of the most  excruciating problems of the online business.

As an Independent publisher – I am desperate to give Apple 30% of my business because they have solved one of the biggest online shopping problems – shopping cart abandonment.


Joe and Jane Smith, struggle with complex shopping carts – Particularly ones that offer continuity!  Apple has solved this in one fell swoop

The one click and password model is superb and the ease at which the App store is going to allow people to subscribe to my publications. One click and password subscriptions is a dream come true with Apple looking after all the billing headaches – please, where do I sign up!!

I’ll pay 30% with a smile on my face – as I said, In my neck of the woods we usually have to pay 50%!

This is an awesome opportunity.

Independent publishers who are good marketers are going to be all over this model.

As for the anti-competitive issue. Please wake me up after you’ve sued the entire bricks and mortar retail industry.

Ed

 


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