Thread: RIM Adding New App World Payment Methods & Changing Revenue Split Ratio

Word has come from RIM that they are working on adding support for direct credit card purchases and carrier billing to App World. Additionally, RIM has announced these new payment methods will require them to change the revenue splitting ratio from an 80/20 split to a 70/30 split, with 70% going to the developer.

As a developer I was at first angered by the news; however, I have since come to the conclusion that this news is not necessarily a bad thing. The new 70/30 revenue splitting model keeps RIM on par with and no worse than Apple's App Store. Additionally, the 70/30 split is still better than the 60/40 split applied to sales made through MobiHand's channel stores. For the record, non-channel MobiHand sales receive an 80/20 split ratio.

A second reason this is not necessarily a bad change is that the addition of new payment methods is something many App World users have been requesting from RIM since the launch of App World. For various personal reasons there are plenty of people who do not like PayPal and new payment methods like direct credit card billing and carrier billing may entice those users to purchase applications via App World.

Very good way to look at the change. I know there are others that are still angered at this new news from RIM...hopefully your point of view will make an impression on them.

Originally Posted by Neolantis

Very good way to look at the change. I know there are others that are still angered at this new news from RIM...hopefully your point of view will make an impression on them.

I agree completely...you provided a side of this that the rest of us would not know about. Thanks Jeremy. :hail:

I agree with you completely Jeremy. Nice write up!

Nice post jeremy! I thought that direct credit card was always used in the app world? Well I dont use it anyway. :/

Very well put. As a developer on both mobihand and app world, I do see the new split as a good thing. I don't see any real lose of revenue with the new split. I feel that the difference will be made up no problem with the new payment options.
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Originally Posted by R1cE

Nice post jeremy! I thought that direct credit card was always used in the app world? Well I dont use it anyway. :/

No, right now its paypal only

As a consumer, I prefer Mobihand over AppWorld. I don't like the fact that the only way to get appworld stuff is to install the client on my phone.

Originally Posted by BenM

As a consumer, I prefer Mobihand over AppWorld. I don't like the fact that the only way to get appworld stuff is to install the client on my phone.

You can blame the carriers for this. Especially Verizon. The word on the street among developers is RIM wanted to push App World to existing devices and have it preinstalled on new devices but several carriers refused.