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by 23david 3318 days ago
"Once your revenue reaches a minimum of $500 USD for the month, you'll receive an electronic payment from GitHub for 75% of the sales price."

So it looks like Github takes a 25% fee. I thought maybe they would do something more innovative regarding the fee structure, or maybe have a lower intro fee like 15%. But here is seems pretty much on par with the 30% of the Heroku marketplace.

3 comments

Atlassian takes 25% fee. If Atlassian takes 25%, GitHub does, if Atlassian has a marketplace, so does GitHub. But Atlassian makes money, while GitHub lost $66m in 9 months of 2016 ( https://developers.slashdot.org/story/16/12/16/1639222/build... ). GitHub is the fallacy of a valuation based on monthly users (33m) instead of based on actual invoices.
AWS Marketplace and Google Cloud Launcher both pay out 80% with no monthly minimum.
Wow, i think 25% is more than enough, they don't have costs that justify 25%. It's just their monopoly that allows them to charge that much.
Monopoly in what sense? There is certainly healthy competition in the hosted Git repository space.
You mean the ones that delete their databases without backups?
I assume you are referring to GitLab, so yes. GitLab and Bitbucket are both actively releasing new features and have sizable paid user bases. GitHub is the market leader, no question, but it not nearly a monopoly.
"Market" is an interesting concept here.

Do you compare all usage, or just their hosted versions (i.e. do on-premise installs count)?

Do you compare all usage, or just paid usage?

Can a company that's not even close to profitable be considered a "market leader"?

"Can a company that's not even close to profitable be considered a "market leader"?"

Sure it can. Uber and Twilio are generally considered, far and away, as market leaders in their respective spaces; Uber is massively unprofitable and Twilio was operating at a loss at the time of its IPO.

Market leadership is a function of production and capacity, not profitability.

Not really. There are a couple of also-rans but I'd be amazed if GitHub had less than 95% of the market.
It is not uncommon in business to pay a premium for access to a pool of qualified potential buyers. 25% pays not only for the single conversion but all the other exposures and access to the market. So 25% doesn't seem that bad to me.
A monopoly that is losing over $9M a month.