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Thoughts on Earning $100,000 in 4 Months for an Indie Mac App

16 pointsby saddingtonabout 10 years ago

3 comments

rickcolosimoabout 10 years ago
Actually, that is your net revenue number. You have gross revenue of $172k, minus a cost that isn&#x27;t really part of your operations (Apple&#x27;s cut), leaving you with net revenue.<p>Costs of goods sold (COGS) (or cost of services) is deducted from revenue to give you a gross profit number, from which are deducted sales, general, and administrative expenses (SG&amp;A) are deducted to get you to gross income, and then taxes are deducted to get you to net income.<p>I often draft net revenue provisions in contracts when someone is getting a percentage commission from the gross but things like returns, credits, other commissions, etc. should in fairness be deducted from that number.<p>Not all companies use gross and net revenue -- it really depends on the size of the component that goes away. Apple, for example, should not report $172k of revenue but rather their $72k cut as their net revenue -- since they never have a right to that other money, it could&#x2F;would be misleading for them to report it as part of their operations.<p>That&#x27;s your hard work, not theirs. Congratulations.
daleaceronabout 10 years ago
Congrats John. An accomplishment well deserved! Way to put your nose to the grind and bust a$$!
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nthStateabout 10 years ago
Incredible. Well done to you!
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