SlideME Revenue Share
Submitted by SlideMEteam on Wed, 09/30/2009 - 19:47
At SlideME, we introduced the highest payouts for developers in the industry, with typical payouts of 95%. The remaining 5% went directly to the payment processor. Our position has always been not to make money on downloads. Sadly, those days are coming to an end.
We naively envisioned that developers and content would arrive in large numbers on SlideME due to our global billing support, which Google lacked. And with this content, we expected we would line up operator support and white-labeling of our solution. After 12 months, this has yet to happen.
While we have had fantastic growth, nearly doubling content in the last two months, we still have only 3% of the applications found in Android Market and that is the yardstick operators measure us by.
We have fairly high fixed costs to support global billing, so we now have to make the regrettable decision to either take a revenue share or to shut down global billing.
As of October 7th, we will start taking a 30% revenue share to help cover expenses. This will not affect any sales prior to that. We will be informing developers of this through e-mail explaining the situation and asking for continued support.
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Undercut Google?
I think maybe you should make the cut less than Google - perhaps 20%? I was literally in the process of putting my games up onto SlideME, but this for me means there is no longer an incentive to have to manage multiple accounts, app versions, and all else that comes with multiple distribution methods.
Having said that, I understand the need to make this move and wish you luck with it.
No incentive? You know, us
No incentive? You know, us folks outside the Android Market blessed territories also have money to spend, even if there's a crisis on :)
better than no alternative?
I believe that the folks at SlideMe are entitled to at least be able to sustain their costs, if not make some profit out of maintaining this application distribution channel. Besides, 70% is still enough to make this alternative worth while, especially since Google doesn't offer global billing support. Also I think it is wise not to keep all your eggs in one basket, meaning that relying only on the Android Market for making revenue out of your applications is not a surefire way to make business.
We will definitely take
We will definitely take developer feedback into consideration, as we don't wish to have developers to stop uploading paid applications. I can't guarantee anything now but we are cranking numbers and working on other ways to reduce costs. Any developers with feedback on this, please let us know.
Makes sense
As a Canadian this service offers far more than Google does (save for the market share of course). To be honest I was skeptical at the 5% rate and would prefer to pay the going rate for a decent service.
It's still 70% more than I'm getting from Google.
Before or after taxes?
I don't seems to have received an e-mail about this, so perhaps someone can tell me whether the revenue share is taken before of after taxes, or is SlideME / mobentoo paying the taxes out of their part of the revenue?
Sales Tax
The final price set by you as a developer is inclusive of sales taxes where applicable. e.g Selling in the UK is subject to 17.5% VAT sales tax.
See also this FAQ link.
SlideME charges sales taxes where applicable, collects such sales taxes and SlideME remits such sales taxes to the respective authorities. The developer does not need to be concerned about knowing how to apply sales taxes to your sales, unlike as required by AM where you are a merchant to GC, selling to the end users, your customers.
Developers must not confuse their personal income tax with sales tax.
Revenue share is temporarily
Revenue share (the SlideME portion) is temporarily on hold until we communicate the final details to all developers.
Works for Me
I hate to say that I don't have a problem with more money being taken from me but I actually don't mind paying the same (or perhaps even a little less) than I do for the Android Market. My only goal with SlideME was to make my app available to users who don't get the Android Market. So far, I have seen sales that can be counted on one hand (which is nearly 100% less than the Android Market). But my true goal was to put my app up here even if only a few people needed it.
I also assume that if I, and others like me, continue to keep our app(s) listed with SlideME that we will eventually see it pay off. The way I see it, it only takes me about two or three minutes to add my updates to SlideME so why not make it available. It is a small time investment into what will hopefully pay off. And if not, the risk was next to nothing for me. So I say to other developers, list your app(s) with SlideME. If say sell well, great. If not, do it for the future.
If SlideME has 3% now, it can only grow. Furthermore, by not listing your app(s) you insure that SlideME will never be successfully. It's a win/win for developers. You list it. If it sells, you make money. If it doesn't, you've literally "wasted" only a couple of minutes. But if you list, you help it succeed and then we all succeed. If SlideME suddenly has 25%+ of the apps listed on the Android Market, everybody benefits. The consumer benefits by having the ability to purchase your app(s) where they once were not able to do so. Developers benefit two-fold. One, Google will be forced to improve or even change some of their policies. Two, you make money. One way of doing things is never a good thing.
When given the option, I prefer choice. It's why we use Android devices rather than iPhones.
Cheers,
AAC
How about Paypal?
At least as an option? It may make the paid applications more widely available, and is easier to set up for many (already having gone through the credit card verification once at Paypal).
Do it... price is not your edge, really
I signed up and was about to upload my app when it finally dawned on me that I didn't want to bother. I'd gladly pay 30% to ensure that my app can reach people who cannot obtain my app from the Market, but I have a total revulsion about having to submit invoices and suffering a $100 minimum payout.
Why would I want to submit invoices, telling you to pay me money due me in an amount YOU know better than I do? Just send me the money. This is the one thing Android Market has 105% right.
I'm not going to more than double my sales channel management task to gain 5% more users. Charge me money, sure... but make it easy for me to choose to sell through you.
I hear you
You are touching on several interesting points and I hear you, but its not as hard as it may sound to issue an invoice to SlideME once in a while. Well, we could make it easier, if you could confirm to a 'one-click' issue invoice approach to make your life easier for issuing such invoices. Will you be willing to accept such a 'one-click' issue invoice, if we had to offer this type of service to you as a developer?
To be a global store, we need to comply to certain regulations and charge/collect applicable sales taxes. This is where SlideME 'shines'' for you as a developer, from a) invoicing all your end users & b) applying sales taxes, collecting and remitting to the respective authorities.
Unlike A.M, which is a catalog (not a retail store) residing on top of a 'Payment Processor' service called Google Checkout, according to http://bit.ly/cNJNdd, section 3.2 (+4.6,4.7), where you the developer is required/responsible for invoicing each of your customers and applying applicable sales taxes depending on your customers jurisdiction. In addition, after collecting the sales taxes, you have to register and submit to the local authorities the sales taxes you have collected. So we make it much easier for you as a developer to only issue one invoice to SlideME instead of you issuing an invoice for every sale as you are required by A.M. In essence, you are selling to the end users, and not A.M, whereas with SlideME we are your reseller, and we actually sell the item to the consumer.
We offload a lot of the required complexities involved for a developer to comply in selling globally, as I hope now you understand.
What do you suggest, should be the minimum amount before system can prepare an invoice for you, where you will then click to issue?
You mention: 'just send me the money'. Easily said, than done. Not so easy when developers span across the world and any receipt of funds requires justification.
I am not sure how you came up with a figure of 5% more users. Do you think the international users using SlideME's SAM, and the 4 major handset vendors that have preloaded SAM in counties where there is no Android Market, will only provide 5% more visibility of your app?
Some developers are claiming more downloads from SlideME for their free apps. Could not say the same for paid apps as of yet, but it a matter of time.
Android devices are still coming to market and such smartphones are being released into many more countries. My assumption is that your application will get more visibility in due time.
Keep in mind Android Market for paid applications is only available in 13 countries (Australia, Austria, Canada, France, Germany, Italy, Japan, Netherlands, New Zealand, Spain, Switzerland, United Kingdom, United States).
and
only from 9 countries can developers actually upload to sell applications via Android Market. (Austria, France, Germany, Italy, Japan, Netherlands, Spain, United Kingdom, United States).
Look forward to your feedback or any suggestions, so we can consider to accommodate.
George
thinking
George... I will read this thoughtful response through in detail soon, and am certainly keeping you in mind. It's sad that laws have to make the obvious thing difficult -- my question was ignorant of those complexities.
tone
New Devices w/o AM will come here
I bought a Eken M003 a 8" android 1.6 Pad device. As this is a Chinese knock-off Pad, no Android marketplace is installed. This site was pointed out to me by other users of the device.
There are probably only a few thousand of these out in the wild right now but it will grow.
As an end user I just wanted to let the developers here know the user demand for an alternate marketplace is growing.
I've installed the SAM app and some free apps will purchase some apps next week.
What are these devices? see http://www.dealextreme.com/search.dx/search.android/r.22878083 prices range from $99-$150
you offer a great alternative
All devices in middl east are without Android Market!
You offer a great alternative market for us and you will have a growing demand.
Keep up the good job :)
More marketing
It is lack of advertising/marketing that Keeps SLIDE ME down.There is demand and need for SLIDE ME. Go for it.
promote SlideMe in the middle east!
This is a suggestion to SlideMe team:
Make a deal with smart phones distributing companies in Middle East to install SlideMe in all devices (Since they don't have market app to start with!).
I think you will have a huge demand if this works.
Regards,
Device Vendors
This has already happened and SlideME's SAM is preloaded on devices by Samsung, HTC, Motorola, LG and Sony Ericsson and many smaller device vendors. Several new majors are joining SlideME.
great move SlideMe!
This's a great step and will have a huge impact.
Keep up the good job :)
What is the current status of Revenue share?
What is the current status of SlideME Revenue share? Is it still on hold or have you already started taking a 30% of app selling revenues?
Your prompt reply will be useful for many developers. Thanks!
Status
We have not moved in taking a cut of 30% as this was a thought back in those early days.
That mentioned, there is a new innovative sub-AppStores model to be introduced soon by SlideME, that will boost sales and provide distribution choice to developers with each of these having their own adjustment fees. More on this in due time.
Keep in mind, the payout amount to developers works quite differently on SlideME. Since we are a global store and different type of payment (and alternative) methods have their variant fees, the payout to developer is based on the payment method used by the buyer. This model allows us to scale to accept different kind of payment systems and introduce carrier billing too. e.g. a carrier may have a withholding fee of 20% for any sales sold on their own network, but another may have 30%. Your transaction detailed view will show such information.
Each such provider will have their own fees and we will list such payment processors fees always on the developers Rate Schedule.
really a shame...
... that slideme isn't more popular. i really don't get what developers find so bad about being able to earn more and not feed the giant that provides horrible service.
it's not like uploading a maybe 300kb app to two different stores (because i do understand that they want to have it in the official store as well as long as a lot of people use it) takes such a huge amount of time. they spend 30 (or 300 or ...) hours coding something but don't have the 3 minutes to upload it to slideme? seriously...
and version-inconsistency is one of the biggest problems i have around here. i would buy every single paid app that i find both on the official market and here - here. if it wasn't for the fact that it seems that some developers simply stop uploading at some point.
i really hope you guys will get past this horrible situation and will become an alternative to the official store. and i hope you won't get greedy then ;P