Friday, January 28, 2011

How much a software developer makes?

What they charge?

Are you new to online software selling? How much do you think you will make when you sell a copy of your software that worth $100?
$99? Wrong!
$95? Wrong!
$90? Wrong!
$80? Wrong!
$50? Wrong!
$40? Still wrong!

Let's take example of a $100 order placed via PO by your customer. In this case Plimus will charge $3 from customer and another $15 from vendor for a thing they call 'manual processing fee'.
 Also, every time a customer purchases something from you and pays via WireTransfer (very popular in EU), the bank on Plimus' side will charge a fee for wire transfer (up to $30) even if the customer is from EU where the wire transfer fee is $0. The fee will be deducted from the amount the customer sent. This means that when amount arrives to you, it will be short with about $30.



Customer places PO order ($100)
Customer makes payment via WireTransfer ($100+ $3 Plimus PO fee)
      Bank (customer side) send money without fee ($103)
      Bank (Plimus side) receives money and charges a fee ($103-$30)
            Plimus receives money ($73)
            Plimus holds PO fee ($73-3= $70) 
            Plimus charges standard commission (-5$ = $65) 
            Plimus charges PO fee ($65-15= $50)
            Plimus sends money to vendor via WireTransfer and charges for transfer ($50-$18)
Vendor receives money ($38)
Vendor pays income tax to government($38- 30$= $26.6)

Well, this is a worst case scenario, where the customer pays via PO. You can hope for better customers.

Related post: http://thesunstroke.blogspot.com/2010/10/plimus-taking-extra-charges-for.html
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Plimus commissions as January 2011


Transaction Amount Range (In US Dollars) Commission Rate
$0 - $4.99 75 cents
$5 - $8.99 15%
$9 - $49.99 10%
$50 - $59.99 9%
$60 - $79.99 8%
$80 - $99.99 7%
$100 - $139.99 6%
$140 - $279.99 5%
$280 and above 4.5%

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