You Can Lose Money If You Are The Amazon Free App Of The Day

| August 2, 2011 | Reply

Back when Amazon announced the free app of the day program, they mentioned the app developer would get 20% of the cost of the app for every download. So if your $1 app mad 100,000 downloads you would still get $20k. Not a bad gig right? You get exposure and advertising with some income included. Now Amazon has changed their tune and offers a 0% payback on apps that are run as “free apps of the day”. One company noted they had a short blip of increased sales after the free app scheme, and is now back to regular sales. The bad part about that is they made no money off of those 100,000 downloads but now have to buy larger servers to accommodate the people who didn’t pay for the app. With news like this spreading, we may start to see less quality apps entering the free app of the day offering. Some smaller companies simply cannot afford to supply network space for people who didn’t pay for the app to begin with.

Source: TechCrunch

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Category: Tech News

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