App Store Assumptions

App marketplaces (Ex. App Store, Google Play) and e-commerce platforms (Ex. Amazon, Overstock) take a cut of seller revenue per sale. If you are selling a digital or physical product through a third party site or application, follow the steps below. Note that fulfillment expenses (ex. Amazon fulfillment) are handled in a later section of the model.

1. Set Commission and Percent of Sales

Start by activating this feature by checking the box next to "Are you selling through an app store or marketplace?". Then enter the percent of every sale (on average) the app store or marketplace takes from your earnings. These commissions will affect your gross revenue because these platforms take a cut of earnings before you receive cash. Next, enter the percent of sales that go through the app store or marketplace. For example, if only 50 percent of sales take place on the platform, the commission will only apply to that 50 percent.

These settings change the effective revenue received per retail sale. If you scroll back up to pricing for any of your business models, you will notice the "Avg $ received per sale" for each tier will be adjusted by your app store assumptions.

2. Advanced Settings

Expand the advanced settings to select which business models are impacted by app store or marketplace commissions. For example, if you sell a device on Amazon but the subscription associated with that device is transacted through your own website, you can check the box to "Apply Fees to Units" and uncheck the box to "Apply Fees to Subscriptions".

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You're ready to continue to Setting Targets: Top-Down Assumptions (optional) or Sales Funnel Strategy: Bottom Up Assumptions. Or go back to the Guidance page for more options.