The news may not please the app owners but Apple has recently reduced its affiliates for App Store apps and in-app purchases from 7% to 2.5%. The reduction in the Apple store commission is gaining mixed reaction from the users and the developers. The 64 percent cut has already been implemented from May 1st, 2017. While there is no worry for users, but the news is sure to affect the entire App Store ecosystem.
Apple community websites are generally linked with a referral ID to App Store downloads. Whenever users buy apps using this unique link, a small share of the purchase is rewarded to affiliate partner. This is how the affiliate partner makes the profit from the in-app purchase activity from the users. Developers still earn 70% of the sale and the app-partners receive incentives for the same.
So, the recent cut down in affiliate program reward states:
As per the document shared on the affiliate percent change, Apple will continue to offer 7 percent affiliate to iTunes as well as iBook content such as music, movie, TV shows, and books. Thus, the implementation is only going to affect the earning on the mobile apps submitted to Apple store. With this new change, it seems Apple is planning some big moves for the near future.
The move is one strange also, as Apple just rolled out the news a week prior to its implementation, which is just not the way Apple works. It was indeed a short notice for the affiliates to adjust to this new change. Affiliates are marking the news as Apple’s dramatic move to cut down their earning by almost 64 percent that is of course huge when it comes to profit making.
And, for the developers who were making extra income from affiliate links, it is of course a move that is going to hit them hard. Moreover, the move is sure to force websites that had been relying on the affiliates as the source of their additional funding to find new ways of earning extra revenue. These sites may choose to include more ads as well as well sponsored content for additional money making.
Well, the rates for affiliates have just been cut down and now it is time to wait and watch the upcoming reactions. As Apple is known to change the trends(in a positive way), this new move may hit its image. Apple is also expected to introduce more such modifications in the near future.
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