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Amazon App Store 'Rotten To the Core,' Says Dev
suraj.sun sends an excerpt from this post made by a developer who decided to try out Amazon's App Store, only to be disappointed with the experience:
"Amazon's biggest feature by far, has been their Free App Of The Day promotion. Publicly their terms say that they pay developers 20% of the asking price of an app, even when they give it away free. To both consumers and naive developers alike, this seems like a big chance to make something rare in the Android world: real money. But here's the dirty secret Amazon don't want you to know, they don't pay developers a single cent. ... Amazon is being predatory here, and asking developers (who are often desperate for exposure) to give away their app, in order to promote Amazon. In the end we agreed that we had entered the world of Android development as an experiment, and it would seem silly not to add more data to the experiment we were conducting. The day of our promotion came: ... Amazon gave away 101,491 copies of our app! At this point, we had a few seconds of excitement as well; had we mis-read the email and really earned $54,800 in one day? We would have done if our public agreement was in place, but we can now confirm that thanks to Amazon's secret back-door deals, we made $0 on that day. That's right, over 100,000 apps given away, $0 made."
you just earned more than 100k word of mouth sales at ${full_price}.
Maybe, but that's offset by 100k apps worth of support paid for by $0 in income. From TFA, in their case, 300 emails/day, and no subsequent increase in sales.
The summary implies that the developers didn't know that they would get no money. The article makes it clear that they not only were told they would get nothing, but they confirmed in subsequent emails with Amazon that they would get nothing. Knowing this, they still decided to go ahead with the deal.
The Amazon emails have a good point:
The Free App of the Day promotion is the most valuable and visible spot in the store. It hosted the launch of the likes of Angry Birds Rio, Plants v. Zombies and more. Amazon will not receive any sales rev share from the Free App of the Day; and in fact, with as the Free of the Day for one day, you will receive a subsequent Appstore main page placement for the following 14 days. All these highly valuable placements are at no cost to you. We want to promote your app and in exchange of the placements, at the 0% rev share for one day only.
Being "Free app of the day" is a huge advert for your app - and adverts have a cost. Being app of the day is optional - not mandatory - the developers in question could have said no. And the cost is not 101,491 copies of your app - that's RIAA accounting. The majority of downloaders will try your app once and then never use it again. Some may continue to use it, and when they do, if you're smart you'll figure out a way to monetise their usage (e.g. charge for version 2, offer premium feature updates etc.).
thanks to Amazon's secret back-door deals, we made $0 on that day.
Amazon also made $0 that day (from your app). You agreed to the deal. It gave your app enormous exposure. You didn't lose 101,491 sales, because the vast majority of those people would never have bought your app anyway.
The old version of Amazon's agreement stated that developers would receive 20% of the original price when an app was given away for free. Then they changed it, and they didn't make it clear to developers. For many of them it was a nasty surprise. Unfortunately I can't find the original, but the new version is here https://images-na.ssl-images-amazon.com/images/G/01/mobile-apps/devportal/pdf/Appstore_Distribution_Agreement.pdf with the added sentence "No Royalty is payable for Apps with a List Price of $0.00." in Section 2(a).
It's amazing how many problems and complaints would be solved if every ToS, EULA, and online agreement required some kind of electronic signature to be valid. It should be something that would take more than a quick mouse-click to apply. Also if any amendments to existing agreements had to come with a statement to the effect of, "The amended agreement is identical to the previous one in every way, except the following:" which could be covered in a couple of paragraphs, rather than reading tens of pages of legalese to find what has changed.
The entire notion of a contract or agreement is that both parties fully understand it and both parties voluntarily agree to it. The fact that most people neither read nor understand most agreements and EULAs and ToS's means that this system is failing and needs to be changed. Unless of course we are prepared to reject the idea of informed, voluntary consent to mutually satisfying agreements. Anyone who wants to reject that notion should understand that your alternative is the law of the jungle.
It is a miracle that curiosity survives formal education. - Einstein
Yes, and the article says that they saw this, asked Amazon about it, Amazon confirmed that it was 0, and they decided to do it anyway because they wanted more data points for their Android developing experiment. They didn't misread anything. They knew they were getting screwed, wanted to know how badly, and then wrote about it.
Stories like this have been circulating lately about sites like Groupon/Living Social, etc, where the company (Amazon in this case) promises the world as far as exposure and sales, but then when you sign up for the promotion, you discover that you lose money hand over fist, and the business doesn't really pick up on the back side of the promo. A lot of small businesses have gotten in trouble by signing up for stuff like this.
Seems to me these guys were testing Amazon to see if the same could happen there, and then reported that it can.
"I disagree with you" does not equal "flamebait."