Economics matter
A mobile app makes $100K in a month.
Sounds like the founder is printing money.
Here’s what the economics can actually look like:
$100,000 — App Store revenue
-$30,000 — Apple’s cut
-$25,000 — Paid acquisition
-$10,000 — Contractors / support
-$3,000 — Cloud, APIs & software
-$2,000 — Refunds, chargebacks & misc.
=$30,000 before salaries and taxes.
Economics matter and app founders need to be very careful with managing expenses, especially if their app revenue is cyclical.