5 ms·

The way this is worded makes no sense - surely it should be for the first $1,000,000? $1,000,000 = $150,000 $1,000,001 = >$300,000? It feels like a knee-jerk

The way this is worded makes no sense - surely it should be for the first $1,000,000? $1,000,000 = $150,000 $1,000,001 = >$300,000? It feels like a knee-jerk reaction to the ongoing complaints without much forethought other than an arbitrary change in the percentage below some round number.

lilyball 6y ago
So on Jan 1st every year your commission would suddenly fall from 30% to 15%, until you hit $1M and it jumps back up to 30%? That seems rather arbitrary.
- sokoloff 6y ago
  You’ll probably find the actual rules even more arbitrary. In year 2, your January sales will still pay a 30% commission if you hit $1M the prior year.
  - benhurmarcel 6y ago
    That would be an incentive to drop the price is almost 0 until January if you see that you're trending towards $1M at the end of the year.
    - samatman 6y ago
      Honestly? Fire sale prices on apps around the holidays sounds like a consumer win to me.
mjs 6y ago
There's no discontinuity in the first year you exceed $1m: that extra dollar is "taxed" at 30%, but the first $1m is at 15% ("the standard commission rate will apply for the remainder of the year"). Looks like the next year (after exceeding $1m) the first dollar will be taxed at 30%, though. They should just make this work like income tax: the first $1m is taxed at 15%, and everything above that is at 30%. (Same rules every year, no flip-flop.)
- mpweiher 6y ago
  Maybe that makes it look a bit too much like the tax it is for comfort.
  - mjs 6y ago
    The way the rules are now seems like there's a very big incentive to avoid earning a little bit more than $1m. This could have … unintended consequences. (e.g. if it looks like you're going to earn a little bit over $1m, increase prices by a lot (to discourage purchases), but tell people the app will be "cheap" again in January. Or even make the app free for a while.)

lilyball 6y ago

So on Jan 1st every year your commission would suddenly fall from 30% to 15%, until you hit $1M and it jumps back up to 30%? That seems rather arbitrary.

sokoloff 6y ago
You’ll probably find the actual rules even more arbitrary. In year 2, your January sales will still pay a 30% commission if you hit $1M the prior year.
- benhurmarcel 6y ago
  That would be an incentive to drop the price is almost 0 until January if you see that you're trending towards $1M at the end of the year.
  - samatman 6y ago
    Honestly? Fire sale prices on apps around the holidays sounds like a consumer win to me.

mjs 6y ago

There's no discontinuity in the first year you exceed $1m: that extra dollar is "taxed" at 30%, but the first $1m is at 15% ("the standard commission rate will apply for the remainder of the year"). Looks like the next year (after exceeding $1m) the first dollar will be taxed at 30%, though. They should just make this work like income tax: the first $1m is taxed at 15%, and everything above that is at 30%. (Same rules every year, no flip-flop.)

mpweiher 6y ago
Maybe that makes it look a bit too much like the tax it is for comfort.
- mjs 6y ago
  The way the rules are now seems like there's a very big incentive to avoid earning a little bit more than $1m. This could have … unintended consequences. (e.g. if it looks like you're going to earn a little bit over $1m, increase prices by a lot (to discourage purchases), but tell people the app will be "cheap" again in January. Or even make the app free for a while.)