Definition
The total subscription income earned before deducting app store platform fees, refunds, or taxes. Gross revenue provides a top-line view of monetization performance and is often contrasted with net revenue for financial analysis.
Gross Revenue = Sum of All Subscription Payments Received. Net Revenue = Gross Revenue - Platform Fees - Refunds - Taxes. Platform Fee (Apple Year 1) = Gross Revenue x 30%. Platform Fee (Apple Year 2+) = Gross Revenue x 15%. For quick estimates: Net Revenue ≈ Gross Revenue x 0.70 (first year) or x 0.85 (subsequent years).
Always use net revenue (after platform fees) for LTV calculations. Gross revenue inflates LTV by 30-40%, which leads to overspending on acquisition. If your gross LTV is $100, your net LTV is only $70 (after Apple's 30% cut). Your CAC must be compared against net LTV to understand true profitability.
Apple takes 30% in year one, dropping to 15% for auto-renewing subscribers after 12 months (or 15% if you qualify for the Small Business Program under $1M annual revenue). Google takes 15% for subscription revenue. These fees significantly impact your unit economics and should be factored into all financial models.
Refunds reduce your net revenue and are deducted from your payouts. On iOS, users can request refunds directly through Apple without your approval. Typical refund rates for subscription apps range from 2-5%. High refund rates signal onboarding problems or mismatched user expectations. Track refunds as a separate metric alongside gross and net revenue.
Incorporating game-like elements—such as points, streaks, badges, or level progress—into the app experience to increase user motivation, engagement, and long-term retention. Gamification is often used to reinforce daily habits or reward subscription milestones.
A Google Ads campaign type that automatically promotes your app across Google Search, Play Store, YouTube, and the Display Network. GAC uses machine learning to optimize ad placements and creative variations for installs, in-app actions, or subscription conversions.
Google's official framework for handling in-app purchases and subscriptions on Android devices. It provides APIs for managing trials, renewals, grace periods, and refunds, and is required for processing payments through Google Play.
A limited time window following a failed renewal attempt during which a subscriber retains premium access while payment retries occur. Grace periods help reduce involuntary churn and provide a softer billing experience for users with temporary payment issues.
A compounding system where actions from existing users (like referrals, content sharing, or community engagement) lead to new user acquisition, which in turn fuels more engagement and further growth. Growth loops are more sustainable than linear acquisition models and often enhance LTV over time.
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