How app store commission works
When a viewer subscribes or buys inside an app using the store's billing, the store collects the full price, deducts its commission and any taxes it handles, and pays the remainder to the publisher, usually monthly.
The rate depends on the store, the publisher's annual earnings, the type of product and, increasingly, the country. Smaller publishers and subscriptions often qualify for the lower rate. Stores publish their current terms, and those terms have changed several times in recent years.
What it does to your margin
On a $10 monthly plan, a 30% commission leaves $7 and a 15% commission leaves $8.50, before payment for delivery, content and the platform. A subscriber acquired on the web through your own payment gateway costs only the gateway's fee, usually a few percent.
How services manage it
- Sell on the web as well as in the app, and make the web sign-up easy to find
- Apply for the reduced rate programs each store offers to smaller publishers
- Price in-app plans slightly higher where store rules allow different prices
- Use external purchase links in the regions and stores where they are permitted
- Track revenue net of commission per channel, not gross
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