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DIGITAL MARKETING NEWS

Apple app commissions: freemium attack?

It may be news to some, but Apple pays some sites—known as ‘affiliates’—to link to apps on the App Store.

Heretofore, the base commission rate has been 7% for both app downloads and in-app purchases. Now, those commissions are going to be cut.

Reality

Best information indicates that the cut in affiliate commissions is only going to apply to in-app purchases for the moment. Under the new plan, a trailing-commission style payment to affiliates for in-app purchases will be cut to 2.5%.

For now, initial app download commissions seem safe, set to remain at 7%.

Rethink freemium marketing

The most significant upshot to all this is that affiliates are less likely to push freemium products out to the masses. The rejig of commission rates will motivate affiliates to promote apps that have an upfront price tag for that big 7%.

It follows that the symbiosis of content hungry affiliate sites and exposure hungry developers and marketers will take a hit.

App makers and marketers may have to reconsider their approach to monetisation, as the affiliate rug may just have been pulled from under the freemium model.

Will this rejig of commissions make you reconsider the freemium model for software?

Copy Transmission is a Melbourne-based agency :: Better Brands. Loud & Clear.

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