iTunes: Fair Capitalism?

"Who is John Galt?"  It's the opening line to Atlas Shrugged by Ayn Rand.  A book that has either been demonized or heralded depending on who you ask.  Truth is she writes about a fairytale capitalism.  Yes, she wants government out of the way.  Yes, she wants business (big or small) left alone.  And that would be fine - if John Galt or Dagney Taggert or Hank Reardon really existed.  They practiced Capitalism in it's most honorable sense.  But what about real life companies and people?

Over the last few years there's been a great movement that's come about.  It's called Crowdfunding.  It has been especially great for the arts.  Any aspiring filmmaker or musician can put their project out there and seek support.  A couple of the more popular ones are Kickstarter and Indiegogo.  They provide artists with a framework to seek money and way for patrons to donate.  For this service they've created they take anywhere from 4%-9%.  The better the people using their site do the better they do.  So for every dollar you give up to 9 cents is going to go the company that made it possible for you to connect with the project.  Awesome right?  What if that were 30 cents?  How about 50 cents?  In some cases even 70 cents!  It would start to seem a little absurd.

So why don't we question iTunes who does take 30%?  Or Amazon who's fees can add up to 70%.  Or Comixology or any of these companies that are taking a profound amount of money off the top?  This is only an interpretation but...John Galt would not approve.

Amazon: The Good, Bad and Ugly for Writers

Back in the days of yore when books began, "It was the best of times, it was the worst of times…" getting your literary masterpiece published was ten fold more complicated then today when all you need is an internet connection and some time on your hands.  Enter Amazon and eventually The Kindle.  They didn't just kick open the doors they tore them off.  If you write it you can publish it.  If you publish it others can read it.  Welcome to the 21st Century!  Everyone stand up and celebrate.  All 7 Billion of you.
    Yes, there are a lot of people currently on this planet.  The good news is many of them like to read.  We'll call them the "Audience."  The bad news?  Many of them like to write.  We'll call them the "Competition."  So how do you beat back one to win the other?  You work and work and work at it.  You jump into Social Media and go on book tours.  You hire PR firms and publicists. You fire them and hire better ones.  You seek out bloggers and interviews and reviews.  You spend time and money and sweat and tears all so you can sell your prose on Kindle for $0.99 and keep a whole 35% of the profit!  Wait.  What?  To be fair you can sell it for $2.99 and keep 70% which definitely sounds better.  But will the "Audience" amidst all the other "Competition" pay $2.99?  It's absurd but it's something Amazon forces you to decide.
    And by the way - why are they even keeping 30%?  They have a service.  You need that service.  But they also need you.  And the people selling coffee and vacuum cleaners and Grandma's old collectible Barbie set.  Retailers have been taking percentages for years.  It's how it's done.  If a Bookstore carried your book they took a cut.  Possibly even 30%.  And yes, there was "Competition" but it was by a virtual handful as compared to what is offered on Amazon and it was from OTHER BOOKS!  Not to mention you probably had a publisher behind you.  The business has changed and opened up and with that comes great opportunity but also a lot of noise that you have to wade through.  Amazon should make money for the service they are offering.  But should that amount be between 30-65%?  Authors not only have to write but also do their own marketing which can mean a fair bit of money out of pocket.  If they're successful so to is Amazon.  Maybe they could just let the one doing all the work keep a little more of the profit. 

Bob presents Rhovit