The folks at MobiHand’s have traditionally seen themselves as a low-fare ESD with excellent customer service – their low commission rates were famous all across the industry.
Unfortunately, the ever-falling price of mobile apps has now forced them to increase their commission for all of us as following:
The Agreement under which we provide content distribution services to you will be modified effective May 1, 2011. This email message is our notice to you under the contract change procedure described in the existing Agreement.
These changes will position MobiHand to increase sales of your products and to continue providing efficient and responsive services. We hope you will find the new Agreement to be easily understandable and acceptable. Some highlights are mentioned below:
70% Revenue Share: Beginning May 1, 2011, our standard revenue share rate will be 70%. This rate has become an industry standard and we are pleased to offer this standard rate across all of our “Standard Channels”, which include all the MobiHand-powered stores through which you currently sell your products. Rates at shopping carts in your website or within your product will continue to be based on the current tiered fee schedule.
New Optional Channels: Another important change is the addition of “Optional Channels” that will provide another way to sell your products. Optional Channel partners will generally be carriers or other high volume store owners. Each Optional Channel will require you to conform to a number of requirements that are unique to that channel. Participation in each Optional Channel will be optional – you may “opt-in” to participate, or not. Requirements applicable to these Optional Channels may include price guidelines, narrowly defined product needs, prohibited materials and specialized payment terms. We expect Optional Channels to greatly expand sales volumes to customers who are otherwise difficult to reach. Many of the changes to the Agreement are made to allow for these Optional Channels. Rates paid to you for Optional Channel sales will be specific to each channel. We expect most of these rates to be less than the standard 70% rate, but the net result should be favorable because these companies have the ability to generate substantial sales volumes. More information about Optional Channels will be provided soon.
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