appbackr’s wholesale model allows anyone to purchase apps. Developers get immediate payment, and the buyers profit when those licenses sell in app stores. By
creating a system where third parties can see significant profit from mobile
apps, appbackr is creating a new market that will facilitate the distribution
and discovery of new applications.
appbackr gets paid on a transactional basis--once when the app sells in the
wholesale market and a second time when the app sells in the iTunes retail
market. With iTunes acting as the cash register for the purchase, appbackr
receives the retail payment, and distributes the money (using PayPal APIs) to
the buyer and collects a fee for processing the transaction.
appbackr competes indirectly with a number of substitute models, however
there is no true wholesale system for mobile applications today.
appbackr allows developers to wholesale as much or as little of their
inventory as they wish. This competes favorably with angel investing, loans,
partners, etc., since they don’t give up their IP or dilute their equity.