rate of 9% will stay the same for iTunes, Amazon and the other online stores they service (press release excerpt in the jump). Stay tuned and be sure to check out their new store from a service that has been helping indie artists since the Internet was run by dinosaurs in mouse wheels.
In order to launch the much-anticipated single-song downloads (see
below), we had to make a change to our fee structure. This adjustment
will only affect download sales purchased from our own cdbaby.com
retail website (it won’t affect digital content we distribute).
Beginning July 11th, CD Baby’s cut on all download sales purchased
directly from cdbaby.com will be 25% (with a minimum of 29¢). This
change is actually vital to our continued success as a company, and
The credit card fee we pay to our bank whenever a customer makes a
purchase on cdbaby.com ranges from 27¢ (for a single) to over 50¢ (for
an album or CD sale) per transaction. Clearly, at our old rate of 9% of
99¢, we’d actually be losing money on every single download
transaction. That’s not a good business model. We’ve been praying daily
that the banks would choose the philanthropic path and waive all their
credit card processing fees, but alas, reality persists. And that’s why
the new retail fee structure is necessary.
For all your other digital distribution income (iTunes, Rhapsody, eMusic, etc.) we’re still paying you 91%…