Exactly. Most apps don’t flirt with $1M, they blow right past it. And many of those will be subscription apps with some growing percentage of revenue on the 85/15 subscription split. Which means it’s not that one day you’re paying 15% on all revenue, the next you’re paying 30%.
https://twitter.com/jeiting/status/1329399213491445762
2/ There’s been a lot of focus on the $1M threshold (including by me), but I’m warming up to it not being an issue. It’s like the tax arguments about how raising taxes on people making over $400k will disincentive people from making over $400k. That’s just not at all how it works
3/ Here’s a more nuanced discussion on why it’s probably not a big deal. As @jeiting mentions there’s also a lot of precedence for businesses facing new taxes and regulations as they scale. subclub.co/episode/app-st…
4/ Last thing on this topic… think about the distribution of when this is even going to happen. If you hit $600k in November and are growing at 20% month over month (many apps at that scale grow even faster), you close out the year under, but hit the $1M middle of the next year.
5/ The company still gets $1M at 15% and knows the 30% is coming, so there’s plenty of time to prepare. When you're at that level as a company selling (near)zero marginal cost goods and services you can figure it out just like everyone else who got there while paying the full 30%
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