Google Play: 30 percent standard commission on apps and in-app purchases of digital goods and services sales of physical products are exempt. Subscription commission falls to 15 percent after one year.ĭevelopers that make less than $1 million per year in App Store sales can receive 15 percent commission through Apple’s App Store Small Business Program for as long as they qualify. Approximately 80 percent of Americans shop online, according to the Pew Research Center, and more than half of those shoppers use a mobile device like a phone or tablet.Īpple App Store: 30 percent standard commission on apps and in-app purchases of digital goods and services sales of physical products are exempt. Whether someone is selling a line of jewelry on Etsy or spending oodles of money in Roblox, app stores are the gateway to reaching people who shop on their phones and computers. App storesĪpp stores are where an enormous number of businesses operate. Here are the various fees each platform takes, divided into four categories: app stores, creator platforms (including memberships, video services, and more), digital marketplaces, and games marketplaces.

Knowing just how much each platform takes is crucial to figuring out what’s best for your business, or for understanding how the businesses you’re shopping from make money. The cut each platform takes varies significantly: Apple notoriously takes 30 percent of many digital in-app purchases Twitch takes a 50 percent cut of subscription fees and a cut of advertising eBay asks people to buy space and then pay a fee. And marketplaces like Etsy and Amazon allow people to sell an assortment of products directly to customers around the world. Video services like Twitch and YouTube allow creators to monetize their time through advertising revenue.

Membership platforms, like Patreon, allow creatives to charge monthly payments in exchange for new videos, comics, and essays. It leads to a constant tension: apps like Tinder and Candy Crush wouldn’t be nearly the phenomena they are today without the App Store, but they have to constantly pay Apple for that privilege.Īpps are just one example of how online platforms for small businesses and independent creators have shifted the world we live and work in.

But these marketplaces are big businesses themselves, and in order to earn a profit, they take a cut of revenue from many of the other companies that use their space. Online marketplaces like Etsy and Apple’s App Store allow businesses to flourish by connecting them to huge, global audiences.

Circle pay app for developers