Calculate Affiliate Commission After App Store Fees
When a user makes an in-app purchase for £9.99, you do not receive £9.99. Apple takes 15–30% and Google takes a similar cut. So when you pay an affiliate 20% commission, should that be 20% of £9.99 or 20% of what you actually receive?
Insert Affiliate now gives you the option to calculate commissions on net revenue — after app store fees are deducted.
The Problem with Gross Revenue Commissions
By default, most affiliate platforms calculate commissions on the gross transaction amount — the full price the user paid. But this ignores reality:
| Price | Store Fee (30%) | You Receive | 20% Commission (Gross) | Your Actual Margin |
|---|---|---|---|---|
| £9.99 | £3.00 | £6.99 | £2.00 | £4.99 |
| £49.99 | £15.00 | £34.99 | £10.00 | £24.99 |
| £99.99 | £30.00 | £69.99 | £20.00 | £49.99 |
On a £9.99 purchase, you are paying £2.00 commission on £6.99 of actual revenue — that is effectively a 28.6% commission rate on your real income.
How Net Revenue Commissions Work
When you enable this option, Insert Affiliate deducts the app store fee percentage before calculating the affiliate's commission:
| Price | Store Fee (30%) | Net Revenue | 20% Commission (Net) | Your Actual Margin |
|---|---|---|---|---|
| £9.99 | £3.00 | £6.99 | £1.40 | £5.59 |
| £49.99 | £15.00 | £34.99 | £7.00 | £27.99 |
| £99.99 | £30.00 | £69.99 | £14.00 | £55.99 |
The commission is lower in absolute terms, but it accurately reflects what you can afford to pay. And you can always increase the percentage to compensate — 25% of net revenue might be fairer than 20% of gross.
Setting It Up
- Go to Settings in your dashboard
- Find Commission Calculation
- Toggle Calculate after app store fees
- Set your app store fee percentage (default: 30%, or 15% if you qualify for Apple's Small Business Program)
- Save
All future commission calculations will use net revenue. Existing unpaid commissions are not retroactively recalculated.
Apple's Small Business Program
If your app earns less than $1 million per year, you likely qualify for Apple's Small Business Program, which reduces the commission to 15% instead of 30%. Google has a similar program for the first $1 million in annual revenue.
Make sure to set the correct percentage in your settings to ensure accurate calculations.
When to Use Net Revenue Commissions
Use net revenue when:
- You want commissions to reflect your actual earnings
- Your margins are tight and every percentage point matters
- You want transparency with affiliates about how commissions are calculated
Stick with gross revenue when:
- You want to offer the highest possible commission to attract affiliates
- Your margins are comfortable enough to absorb the difference
- Simplicity matters more than precision
Transparency Builds Trust
Whichever approach you choose, being transparent with your affiliates about how commissions are calculated builds trust. Some companies even use net revenue calculations as a selling point — "We pay 25% of our actual revenue" sounds more honest than "We pay 15% of the sticker price."
Configure your commission calculation method in Settings or learn more about setting commission rates.
Key Takeaways
Understanding app store fees affiliate commission impact is essential for fair payouts. Accurate affiliate commission calculation means accounting for the Apple commission (15-30%) and Google Play fees before determining affiliate earnings. This ensures every affiliate payout reflects what your business actually receives — creating trust, transparency, and a sustainable programme.