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  1. #1
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    Nokia Revenue sharing

    I was looking at the OVI terms and the pricing breakdown seems very unfair:
    http://wiki.forum.nokia.com/index.ph...and_Conditions

    Lets say I sell something over operator billing for E1.99, Nokia takes E1.30 for of that leaving 70c gross or 35% gross margin which is abysmal, is that the case?

    Will we be able to block operator billing for any apps we distribute as this gives a much better margin?
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  2. #2
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    Exclamation Re: Nokia Revenue sharing

    Hi Paul,

    I have written an overview article which attempts to draw individual developers attention. see Overview of T & C for OVI

    On SMS payment. The telecom supplier takes 40% at least, its a bit like retail shops, They will take add 50% to price of items. The internet sellers of similar items charge £7 carriage then take this to the Post Office and pay £1.22 to post the item.

    I had this argument about getting my money back on n-gage program and the telecom operator will only give a full refund if the program was purchased from a telecom provider website. So because I used Nokia website then I only got back 60% of my £8 game.

    BTW the 70% you get is AFTER the 40% deducted by the telecoms service provider.
    You really only want some one to buy via credit card, but the (%)figures are not avaliable, normally this is 2.5% in UK but will be quite higher if bought in Euros.

    Update My personal opinion is that the minimum five hundred (500 Euro) account will be the main problem. To Earn 500 Euro will be hard enough so I could only see payment once a year.

    Opinion
    The minimum five hundred (500) Euro value of the account before payment would need sales of around 200 downloads around 8 Euros per unit to obtain a payment each quarter.

    see extract of T &c's below


    "
    Notwithstanding the foregoing, if the total amount payable to You is less than five hundred Euros (€ 500), Nokia shall have the right to withhold payment until the next regularly scheduled quarterly payment date on which the amount payable to You equals or exceeds five hundred Euros (€ 500)."
    NB If the value GBP to EUR goes up the money you get could half in the current economic climate
    Jim
    Last edited by jimgilmour1; 2009-03-21 at 15:50. Reason: add text for 500 Euro min transfer

  3. #3
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    Wink Re: Nokia Revenue sharing

    Hi,
    For those in U.K. using GBP, most banks want a £25 GBP to convert 500 EUR
    to Sterling GBP. When as last year the Euro was at 1.68 to £1 GBP this would leave £300 GBP from 500 EUR. so thats another 10% gone when you include cheque handling charges leaving £250.

    When you consider this on 200 EUR at 1.68 is £120 take of bank currency/ cheque and that barely leave £90. So now you have sold over 200 units at 8 Euros (1600 EUR) and by the time telecoms companies,Nokia and the banks have had there cut you end up with £90 or $119. Then Thanks, but no thanks buddy.


    I believe that the U.K. and the U.S.A. will be affected most by currency problems. Those countries whose currency is Euro will win!.

    I would rather been paid in USD ($). I wonder what the US based developers will think when they receive there first cheque or (check!) in Euros!

    Jim
    Last edited by jimgilmour1; 2009-03-23 at 09:45.

  4. #4
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    Re: Nokia Revenue sharing

    Its a bit disappointing as iPhone is 250 per region where as with Ovi and multiple stores reaching E500 is going to hard as other stores will cannibalize sales in the Ovi store.

    I am also very disappointed about the lack of transparency with respect to operator billing. I have a hard time believing that the operators take 40% of the net price for effectively doing nothing.
    (OK I stand corrected - http://en.wikipedia.org/wiki/Short_m...short_messages)

    Will the Ovi store support PayPal?
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  5. #5
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    Thumbs up Re: Nokia Revenue sharing

    Paul,
    Your comment about Paypal is VERY TRUE many Individual Developers used Paypal and have been successfully selling copies.

    The other thing is Nokia could use Pre-Payment cards that have been so successful for Itunes and more recently the App Store.

    Credit card registration will NOT work, because the target market age is 12 to 18 years, and you cant get a credit card till you are 18 in U.K. and older in some countries.

    Nokia uses pre payment cards for Music, so why not for App store

    Quote


    In Austria, the cost for individual tracks will be of 1.00 Euro per track, while an entire album would cost 10.00 Euros. In Switzerland, an individual track will be 1.50 CHF, while an album will cost 15.00 CHF. The Nokia Music Store offers users a variety of payment options, which includes credit cards, as well as pre-paid vouchers.

    Pre payment vouchers would save the 40% on SMS.




    Jim

  6. #6
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    Re: Nokia Revenue sharing

    Hi,

    Looking at other sites payment. I have seen the "pay as you go" model for credit carda. The card owner could buy, that is fill up, the Ovi user app account with say £20 with one transaction. Hence saving minimum £0.50 per transaction just 2.5%. This the person "minority", teenager buy apps until £20 limit.

    I would NOT want my credit card details stored,because I want my risk limited.

    Using on transaction for a credit card the deducting from an Ovi account as I use this would remove the telecom server costs.

    Jim

  7. #7
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    Re: Nokia Revenue sharing

    Hi
    found another link on this where credit cards and SMS is discussed
    http://discussion.forum.nokia.com/fo...d.php?t=158934
    Jim

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