The Leadership Letter

Real correspondence from the people running real companies — and what it reveals about leadership.

Discounts Are Cheaper Than Exceptions to Your Pricing Rule

When you can't grant a carveout, invent a program — same economics, but the rule stays intact.

Hi Josh, I'm pleased to share that Bandcamp's nomination for PMEP has been approved under our Audio Distribution Accelerator Program (ADAP). This means that Bandcamp is eligible for a service fee of 10% (not 15% as I previously mentioned) on all applicable earnings, in exchange for integration with Google Play Billing & developing features across key surfaces such as WearOS, Auto, TV.

Should you go forward with the integration & our ADAP program, we can bring a suite of valuable tools and insights to your team to help you meet and exceed your business goals across Android. These value-adds include: Growth Consulting (data-oriented business reviews benchmarked against an anonymized peer set); Partner Management (dedicated point of contact to navigate Google's ecosystem); Reactive Support for app-related issues; and Nomination for Early Access Programs to unlock priority access to new Play features.

For context, the standard fee structure is 15% on the first $1M/year & 30% thereafter on all in-app purchases for digital content (physical goods are exempt). The deadline to integrate with Play Billing, or go consumption-only on Android, was 3/31/2022.

Earlier, Bandcamp's COO Josh Kim had noted: 'We were hoping that the prior carveout for digital music downloads would continue, and I'll admit we're disappointed that's not the case, but appreciate that you're continuing to think creatively/dynamically about this.'

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Court Exhibit
In re Google Play Store Antitrust Litigation (Epic v. Google)
3:21-md-02981 (CAND), Doc. 217-4, filed 2022-04-28
December 15, 2021
Public domain
View the primary source →