Hi,

I've been through the same questions for a desktop app that i've
written 4 years ago.

I believe that it's a good thing, a badge of honor as you put it :)

The truth is, people who know how to hack, where to find the crack,
and actually get your app this way when the price is so low, will just
never, ever, in a million years spare the pennies....
They are not customers, they are not potential customers, they're just
power-users that proves themselves this way.

I came to the conclusion though that they are a great communication
vector. They show your app to their friends and multiply the number of
people who are aware you even exists.
Among those people, some, less tech-savvy will simply buy your app.
People that would have never even heard of your app in the first
place.

So you are not really loosing sales because they are non buyers
anyway, and you get popularity :D

A little simplistic but I could actually verify it with my app, I
switched it to a give what you want(even nothing) model and saw a
surge in both download and purchase :D

Yahel
Ps : One way some developper fight back, is by putting a modified
version of their app on those sites themselves : Put a time-bomb : in
30 days  -> "This version is pirated, your phone number was just sent
via the internet to the police expect their arrival in a few
minutes."). But don't actually get any private information from them,
you'd be in trouble and they really are not worth it.

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