Craig explains, why Apple and Google charge Apps 30%? Listen in to find out.
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Automated Machine-Generated Transcript:
Craig Peterson: [00:00:00] You’re buying apps from those app stores. Did you know that the app stores take your commission, shocker, and some people are very upset about this, and particularly Facebook, as it turns out, we’ll tell you why?
Hello everybody. Craig Peterson here. Thanks for being with us today. This is a great weekend. I love the weekends. I love it when they come around, take a little bit of time and enjoy it. Hey, Apple, these guys, right? Apple’s built a pretty darn big business nurse. In fact, right now, I think Apple’s still the most highly valued business ever.
It’s like the first business in history to hit a 2 billion or trillion, I should say. A dollar, a valuation. That’s just an absolutely amazing kid right down to this. Apple is doing some just frankly, astounding things. Now Apple has never been one to really create a market. There were some amazing MP3 players before Apple came out with their iPod.
There were other smart devices before Apple came up Newton or, the iPhone as we have today. Of course, there were other operating systems around before Macko S which was is based on a Unix operating system. We’ll leave it at that don’t want to get too geeky on everybody. Apple, of course, came up with the iPad, which is just a bigger smart device, right?
They weren’t the first ones to have a tablet, but what they’ve been able to do is really capture people’s imagination and help them to make a big change in their lives with technology. One of the things Apple has stressed and has been very good at is trying to keep our information safe. I mentioned Google in the last segment and Google.
Is a company that’s just trying to suck up everything and sell everything about you. Apple is not trying to do that at all. Apple wants to make money. Yeah. But it wants to make money because you like them. So you buy an app. When you buy an app off of that app store, Guess what happens? Apple we’ll charge the developer a fee.
Now I don’t consider that to be very surprising, I guess I don’t know about you, but Apple, they made this ecosystem. They own this ecosystem. Apple has done just amazing things with it. It has people who review the software. That’s submitted for inclusion in the apps to make sure that there’s no bad code in there.
That’s going to try and steal your data. Now, nothing to a hundred percent. But they do. Police did pretty darn well. They also advertise it. The apps they promote the apps. They give the developers, this, all the software. They need to develop apps for a hundred bucks. You can join the whole Apple developers program, do all kinds of stuff, even camp with a new programming language called Swift.
So there is an article this week in ARS Technica. That’s talking about-face now. Again. Oh, let’s talk about what happens here. You buy an app off of the app store. Apple gets 30%. Of that revenue. So if you pay a dollar, Apple gets 30 cents just to keep this simple. The same thing is true for the Google play store.
Now, the reason I’m bringing this all up is that we just had some big news out there about some of these app stores and apps being banned. From the Apple store. So it started first with the Apple store and then Google jumped right on it very quickly. Fortnite is out there saying, you can’t ban us from the store.
why was it banned? it has to do again with this payment system. If you buy an app for 10 bucks, Apple gets 30% of that. So they’ll get three bucks, but you notice a lot of apps have in-app purchases. That’s particularly true when you start talking about these games and Fortnite is Epic games.
It’s just a perfect example of that. You want to move further along in the game, you want to buy some additional virtual property inside the game. Remember how your assets trying to tax that, you want to do any of that stuff. They might charge you 50 cents or a buck. How about candy crush, right?
How many people have I seen playing candy crush and they pay to play it and they pay to get cheats in candy crush? I remember getting cheats for doom way back when I found out what they were, I didn’t pay for them little sneeze there. People are using these in-app purchases and that’s where the problem’s coming in.
Now, of course, they’d rather you didn’t. They have to pay 30% that developers right to Apple, but Apple’s rules, state quite clearly that an app developer, she really has to use them. The purchase features that Apple provides them with. Which also, by the way, provide you with protection so that you don’t have to worry about how good is the developer’s store that’s might be storing my credit card information, et cetera, but they say you have to use our technology.
If you are going to be selling something inside your app. That’s where the big problem came in the big divide because Epic games decided they were going to just set it up. So yeah, you can get the app. why not have the app for free? Yeah. It’s for free on the app store. Then if you want to upgrade, just you just go to go, yeah.
Go to our website there. They’re over at Epic games and, we’ll give you a 20% discount. So there’s still making more money than they would have. If they had gone through the Apple app store. So Apple got very upset with them and not only did Apple but Google when they can figure it out, what was going on and this kind of Daisy chained into the WordPress app and everything else that it really got amazing here.
So Apple found out about something Facebook was going to do inside the Facebook app. Facebook put something in there to warn users of the Facebook app that Apple would take 30% of the in-event payments. So if you registered for any event, a cooking class, whatever it might be on Facebook, Apple would take 30%.
Facebook is trying to be actually for over a year now, make it so their platform can be used for training where you can sell it information products, where they can be sold. You can just go there. So they were going to put a message in there saying Apple is going to take 30% of the event payments, Apple wasn’t too happy about that.
And they nixed that message, frankly. Then Facebook announced a new feature. For paid events earlier this month, so that you could host these workout sessions, happy hours, whatever you wanted to charge people to participate in. In its announcement, Facebook said that on its site, that it was not taking a cut of customer’s payments.
So businesses could keep up a hundred percent of the revenue they generate over on the Android platform because Google was not going to charge that commission on events. So back and forth and back and forth. The big question that it comes down to is whose platform is it? And I want all of you guys that are business people out there to remember that and remember that well, whose platform is it?
Is it Facebook’s platform? If you’re on the facebook.com site, is it Apple’s platform if you were writing or using an iOS app? So whose customer is it? Is it Facebook’s customer. Is it Apple’s customer? Is it Google’s customer or is it your customer? So remember that because, in reality, any of these companies can change any of their rules at almost any time.
So always make sure if you are communicating with your customers or prospects that you. Drive them off of that platform onto something you own like a website so that you can continue to communicate with them, even if Apple and Google and Facebook decide to up to an eight percent tax if you will. All right, Steve, go round.
When we get back, we’re going to be talking about it. The seven signs that you’re about to get hit by ransomware. A great article out on dark reading. Make sure you sign up for my newsletter. Craig peterson.com/subscribe. Stick around. We’ll be right back.
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