Definition
Total income from subscriptions after subtracting platform fees, refunds, taxes, and other deductions. Net revenue offers a more accurate picture of actual profit compared to gross revenue and is needed for forecasting and LTV modeling.
Net Revenue = Gross Revenue - Platform Fees - Refunds - Taxes. Quick estimate: Net = Gross x 0.72 (blended Apple rate).
Always net (after platform fees). Gross LTV inflates unit economics by 30-40%, leading to overspending on acquisition.
Qualify for Apple's Small Business Program (15% vs 30%), grow web subscriptions (Stripe charges ~3%), and reduce refund rates through better onboarding.
Report both, clearly labeled. Use net for MRR/ARR calculations. Savvy investors will discount gross by 30% anyway.
A pricing strategy where users choose what they're willing to pay for a subscription. Less common, but it can be useful for donation-based products, early-access launches, or communities where trust and transparency are core values.
The number of subscribers lost over a given period, adjusted for reactivations. Net churn provides a more complete view of subscription momentum than gross churn and is especially useful for understanding long-term revenue health.
Net Promoter Score (NPS) is a measure used to understand customer satisfaction and loyalty for an app. It’s based on one simple question: “How likely are you to recommend our app to a friend or colleague?” Users rate this on a scale from 0 to 10. Scores of 9-10 are ‘Promoters’ who love your app, 7-8 are ‘Passives’ who are satisfied but not enthusiastic, and 0-6 are ‘Detractors’ who are unhappy. A high NPS indicates strong customer satisfaction and is often linked to growth and positive word-of-mouth, while a low NPS can signal potential issues and customer churn.
A subscription that ends after a set period without auto-renew.
When users become overwhelmed or desensitized by excessive push or in-app messages, leading to disengagement, opt-outs, or churn. Managing frequency, personalization, and value of notifications is important to maintain user trust.
Botsi automatically shows the right price to every user. Stop guessing and start growing.