What will Blizzard’s cut of the cash-out fee be? I’d imagine probably a % of the % then?
That’s where it gets really interesting. I can see it going a couple of ways. Let’s say Paypal are the provider.
You sell an item, Blizzard process it in their AH taking the flat listing and selling fees. They then pass the remainder of that transaction on to Paypal to process into real world currency.
Paypal will take a percentage of that depositing the remainder into your Paypal account, it’s how they operate. As big as Blizzard is, as much potential they may see in this market and as much as Paypal might want to secure this business, they won’t compromise their core business model to do so. That means their fee will be a percentage.
I see Blizzard doing three things on cash-out fee, two of which have a direct affect on the seller:
1 - Charge a flat fee for cash-out. They will easily justify this as how Paypal charge the seller is of no concern to them, Blizzard are merely facilitating the hand-off to Paypal.
2 - Charge a percentage of sell price before hand-off to Paypal. They will easily justify this as Paypal is charging a percentage, so they have to as well.
3 - Behind the scenes Blizzard will have gone to market for a 3rd party to provide cash-out service. As mentioned above, Paypal will want this business, as they may view it as having large potential. To secure becoming Blizzard’s provider, they will pay a margin or percentage of their percentage to Blizzard as part of the deal. This is contractual back-end and transparent to the seller, but it will definitely happen.
So, Blizzard, the clever sods, will likely have three streams of revenue from the seller - two flat, one yet to be determined, and one additional stream from Paypal, which will be percentage.