Another big obstacle in making money out of mobile content is the huge chunk of revenue operators take from each transaction be it WAP billing or PSMS .
40 -55 % is the norm from the end user price. So if you sell a video clip at 3 euros you will be lucky to receive 1.50.
Off portal content providers get a very raw deal. If you are on portal with an operator you still the get the same revenue share but the crucial difference is you are not paying for traffic. The operator provides it to you.Cozy.
Its only in mobile that such obscene revenue grabs are tolerated.Imagine Credit Card processors taking 50 % of the transaction in commission.Internet commerce would be dead overnight !
Yet we all accept it. Why ? Well the operators have us by the dangly bits.They know that operator 'on phone billing' is the only viable billing method for content purchases so its a case of ' if you don't like it - tough ' !
However, it is a very stupid short term ' not looking further than the end of your snout' policy that has simply strangled off portal mobile content together with the operators not allowing genuine free access to the mobile web.
For smaller companies there is no incentive whatsoever to set up mobile storefronts with all the cost and hassle this entails and to be treated like a piece of dogs poo by the operators.
You can buy expensive on portal advertising ( maybe, but this is another topic ) but you still get the same crappy revenue share even though you are paying for advertising on their portal.
So is there anyway at all to make money from selling mobile content when faced with these obstacles.Well yes there is , but do not believe all the rubbish you read about how easy it is to do so.Anyone telling you how easy it is is trying to sell you something.
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