If there is one question that gets asked over and over again at almost every New Technology meetup or App Show, it is this.
What is your business model? How does your Startup, Mobile App or Service MAKE MONEY ?
So during my interview series of appbackr, I didn’t let Jagat go without asking him the same question.
Jagat: We make money — currently it’s a transaction model. First of all, we take a cut from the buyer’s side when they are purchasing the bulk amount. Let’s assume a 99 cent application. What the developer is getting is 25 cents of that. We take initially 10 cents out of every cent. When the actual application sells on the iTunes market, the buyer gets 53 cents back, we give the developer an additional 11 cents – that’s 39 cents out of the 69 cents or so that he will receive after Apple takes it away. We take — depending on conceptual or finished app, we take 2 to 5 cents.
Then of course, the one thing I did want to add — because we have a criteria to actually put the application on the marketplace — we want to make sure it’s a serious, serious application. We actually do charge a parking fee for that application on the platform. The first month is free, but if you want to keep it on there additionally, right now it’s $25 a month. We’re working with partners — we’re willing to work with developers to figure out how better that money can be spent if they want to actually work with us.