If google does ANYTHING with zero expectation of profit, they are
quite literally behaving illegally. They are a publicly traded company
and as such every action needs to either break even or make a profit
SOMEWHERE, directly or otherwise.
The market is "otherwise" - sure, they don't make money off the sale
itself. Thats not the end of the story though - it makes android more
popular (which -does- profit them quite a bit), and (double bonus) it
funnels more money (and customers) through checkout, with associated
direct and indirect profits.
But the app developers are a captive audience, right? Er... maybe not.
The thing is, so long as you don't say in so many words "hey, the real
version can be purchased through {reasonable broker}" you can still
put a demo on market and a full version elsewhere without violating
the market ToS. (Most users who want the full version will go to
market, and if that fails they'll figure its banned in their region
and go to the app website. You'll lose some percent of sales, but....)
On Fri, Jun 5, 2009 at 4:02 PM, Marco Nelissen<[email protected]> wrote:
> On Fri, Jun 5, 2009 at 11:43 AM, intbt <[email protected]> wrote:
>>
>> I don't entirely agree with Google needs to make a profit to handle
>> these situations. They take 30% to handle e-commerce, advertise,
>
> Only part of that 30% is used to cover Google's cost, and the rest goes to
> the carrier. As I said, Google does not make a profit on app sales.
>>
>> distribute, display, etc. If you sold a game to Game Crazy (or similar
>> game vendor) they pay you a wholesale price and then re-sell the game.
>> 30% is probably less than their mark-up,
>
> Exactly, and it's because of this extra mark-up that outfits like that can
> provide extra services such as covering credit card chargeback costs.
> They've simply factored the average cost of chargebacks in to their mark-up.
>
>
> >
>
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