It appears that Research In Motion (NASDAQ:RIMM) is guaranteeing a $10,000 sales for developers during the first year the BlackBerry 10 is offered in the market. This guarantee indicates that RIM will make up the difference if the developer will only make less than the said amount for the first year. This is a risky and costly position for the company even as it tries to increase interest among developers for the BlackBerry 10 platform of the company.
The company aims to correct the issue that it faced in the past where it lacked support from developers in the platforms prior to the BlackBerry 10 OS. However this may not be the first time a company has offered such incentives for developers since Microsoft (NASDAQ:MSFT) had already made a similar offer for the Windows Phone platform although there were no specific details on what the software company had offered its partners.
BlackBerry
Offering the guarantee to developers for BlackBerry 10 apps may appeal to smaller developers as well as other developers who are looking for a new platform to work on. However there are some conditions before the $10,000 guarantee is given to the developers and the BlackBerry 10 apps should meet quality standards of the company.
The apps should be given the approval and should be certified for the BlackBerry App World before the guarantee is given. Developers should also earn at least $1,000 from the BlackBerry 10 app before the guarantee is given by the company.
If the BlackBerry 10 apps do not bring in $10,000 for the developer, the difference will be paid by RIM although the application platform and tools vice president of RIM, Christopher Smith, does not expect to make out a lot of such payments basing on the performance of the apps that are currently on the store.
Smith revealed that the $10,000 guarantee that the company gives to developers of BlackBerry 10 apps is basically a statement of the confidence of the company to its developers and it aims to enhance the value of investing on the latest platform of the company.
