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Motricity (operator of PocketGear.com and Smartphone.net software shops) increases commission
April 29, 2005 [General] | By Edward J. R.

Please note: many news sources and websites will not reveal this information to you because they have affiliate agreements with mobile software shops and are afraid of doing it! Only we are giving you the whole story!

We have received information from developers of Windows Mobile software, that Motricity (formerly known as "PowerByHand") will be ripping off more money from them. Previously Handango decided to take away up to 60% from developers and now also Motricity follows...


(on picture above: Mark Ewen - one of Vice Presidents of Motricity)

Here is what Motricity writes in communication to developers:

The new Motricity reseller agreement reflects the following, in effect June 1, 2005
  • A rate of 60% payable to developers on Motricity direct sites, and 50% on Motricity partner sites, not including shared transaction costs. Please note: the transaction costs calculation is not changing and will be deducted from the sales price prior to the developer royalty calculation.
  • IRS rules for tax withholding for non-US residents
  • Real-time fulfillment definition
  • Change in revenue share for products which do not utilize Real-time fulfillment methods
  • An effective date of June 1, 2005
In other words Motricity will be giving only 60% of the money to developers (previously 70%). Sometimes (on partner sites - like affiliates) it will be even only 50% to developers!

Conclusion: Motricity (operator of PocketGear.com and Smartphone.net software shops) is not any better than Handango! Clearly Motricity and Handango form oligopoly and rip off developers to big extend and are a barrier between developers and mass market customers. Barrier, not facilitator.


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