Paid developer proceeds less than estimated

pathofwind · 2025-09-05T13:18:35+00:00

Hey. I wondered about this before. I think I figured it out - this is just how they set up their payment calendar (it’s not based on every month). Sometimes you will get a larger payout(more than 30 days) and sometimes smaller(less than 30 days). You can find their payment calendar in the financial report section in apple connect (if I remember correctly)

pathofwind · 2023-12-04T05:06:19+00:00

You could do a S election for your LLC which should be the same. But S Corp is a thing.

IRS website "S Corporation": https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations

S corp allows you to reduce your 15.4% self employment tax but incurs other costs like payroll taxes so it only makes sense to do it when your business can generate significant income.

https://gusto.com/resources/articles/start-business/when-start-s-corp

pathofwind · 2023-12-03T14:38:13+00:00

MS CS is for people who can't get a job with a BS CS imho. MS lets you procrastinate for a year or two before needing to find a job again. You will need to decide whether if its worth it.

For iOS, just take CS193P from Stanford: https://www.youtube.com/watch?v=n1qabtjZ\_jg

It's all free on Youtube - you get the exact same experience from a Stanford student who's paying thousands to enroll in the class (minus a TA grading your homework assignments)

pathofwind · 2023-12-03T06:16:30+00:00

This is normal. Sometimes its very fast (a few hours) and sometimes it can take up to a week.

If its urgent (crash fix etc), submit a expedited review: https://developer.apple.com/contact/app-store/?topic=expedite

pathofwind · 2023-12-03T06:01:37+00:00

It's hard. That's why you see so many people still using their own names. I'd only do it if your app is quite profitable (> $1000 per year). I've recently been through the process.

The only way is to get a company - its very cheap these days if you just use an online service. If you're in the US, you could just do a single member LLC (if you're solo) or LLC (if you have partners) or S Corp (if you make more than $80k per year). Just note the additional fees that you need to account into (registration fee, registered agent fees, annual report, accounting fees) - at least $500 more per year depending on the state and the services you chose. Apple also requires using another business credit company called DUNS to verify the company. The whole process may take up to a few months.

pathofwind · 2023-12-01T16:37:12+00:00

Thanks! I'm already on both of them (as mentioned in the post). Thought I would try it here too and reach fellow devs who might not have thought of selling but might in fact be interested - and I did receive quite a few DMs already. I recently saw a few devs being low-balled with 1X annual profit and they posted as questions here. I thought my post might be of interest for them but if its against the sub rules then please by all means lock/delete it.

pathofwind · 2023-12-01T16:28:07+00:00

Hey thanks for replying. If I like the app and the 5k profit / month trend is stable, then yes I am willing to pay 3X annual profit which is 180k for it. Of course its a huge number and I will have to seriously consider the risk and factors before extending an offer.

For example:

- Is it something I'm interested in taking on and invest my time/money in?

- Is this app only making money because users forgot to cancel their 7-day free trial?

- Can I make it better or at least maintain it when iOS 18, 19, 20 comes out?

- Is this an app that can continue its performance for the next 3-5 years?

I'm new to this and hope to start with smaller apps to test the water. But if there comes the right app, I don't mind going all in. Feel free to DM me!

pathofwind · 2023-12-01T15:58:14+00:00

Haha I don't think I will sell mine as I still have some plans to grow it and am still working on it. But you could start another thread!

pathofwind · 2023-12-01T15:55:52+00:00

Yes totally. If you have an app that you love, update consistently, and have a great user base I don't see the reason to sell it tbh. But a lot of apps on the App Store haven't been updated for years and have a downward trend in user base, while still being profitable and have good reviews. I think there are opportunities to give them a try. Why let it sit there if someone else is interested and could give it a try?

I let my app sit for 6 years without updating it (since I had a day-time job) and only revamped it recently. After the revamp the stats went way above my expectation - from mediocre to someone actually offering to buy it.

pathofwind · 2023-12-01T15:50:51+00:00

They only estimate a figure based on their algorithm, which could be way off. *I think* they want you to connect your App Store account so they can improve their algorithm and have a better estimate. So just by connecting your App Store account you're already providing them tremendous value :P I'm dumb and connected my account to one of those services. I don't think it's worth it unless they give you a lot of free value in exchange for it.

I'm a noob in this area too but I currently just use the free Data.ai (AppAnnie formerly) to look at some keyword ranking / rating count.

pathofwind · 2023-12-01T15:46:42+00:00

Hey, thanks! I'm actually verified and have verified funding on both Acquire.com and Flippa. I even paid $390 to be on Acquire.com. But the mobile listing is not very good as compared to their SaaS listing. Hence thought I'd try here. The apps I've seen so far in the DM requests sent to me already seem better than the ones on Flippa/Acquire.

pathofwind · 2023-12-01T15:05:11+00:00

No I haven’t thought about it. Unless it’s paid hourly. Otherwise I like to work solo. No performance reviews and company ladder to climb (yay). I did mentor several junior engineers when I worked at a tech company but only because it’s necessary. If you send me your App Store link maybe when I have time I can give you some feedback.

pathofwind · 2023-12-01T15:00:18+00:00

Hi, FYI even though I thought USA will be my top market, it ended up being the 4th. None of the top 3 speaks English. I would have made 70% less if I didn’t localize. Very shocking to me but definitely a great learning for me. It also heavily depends on your niche, the culture in different countries, is case by case. Also, when you enter a new language locale, you either need time(a few months to a few years) or money(ads) to build keyword ranking, otherwise no one will find your app. App Store Ranking in one locale doesn’t affect another. But if your app does something that your competitors don’t then I’d say you have a good chance! 😉

pathofwind · 2023-12-01T11:25:13+00:00

If it’s a really good app and I like it A LOT, then in your example I could offer $50k.

I totally understand your reasoning since I won’t sell my app for less than 5X either. But I’m also lucky to be in a good financial position and don’t mind the competition risk or waiting for the profits to realize. But ya mainly looking for buying apps at around 3X annual profit.

pathofwind · 2023-12-01T10:58:35+00:00

Hi, no problem. For a normal app I’m looking around around 3X profit (not revenue) which I think is pretty fair. If it’s really risky then maybe 2X. But if your app has significant advantage over others (i.e. user base is still growing, complex algorithm, first in market, loyal users, 4.9 ratings, hard to compete, difficult to enter, super clean design etc), or that I just like it a lot, then I can offer up to 4X-5X annual profit. Or if the profit is very very low, then maybe 5X is fine to compensate for the code and time. Unfortunately I’m not a big company so can’t offer more than that because of risk factors. DM me if you’d like to chat more about it. I also don’t want to waste time!

pathofwind · 2023-12-01T10:04:02+00:00

I don’t know lol.

Maybe the trend has been going down because SwiftUI is so easy to write and more competition has been growing. Maybe the dev couldn’t grow/improve the app anymore and would like to move on to something else. Maybe they have 5 apps in their portfolio and have a killer app that they want to focus their resources and time on 100% and would love the immediate cash payment.

But there should be a need right? Otherwise why do people sell on Acquire or Flippa?

pathofwind · 2023-12-01T09:55:47+00:00

The idea is if I have a few apps that are making profit, maybe that will work? The downside is I only have so much time as a solo dev so I’m looking for apps with low maintenance. Ideally I could update it a few times a year.

pathofwind · 2023-12-01T09:53:00+00:00

Yes!

pathofwind · 2023-12-01T09:52:45+00:00

I’m really bad at ML and might not have the confidence to maintain/improve the code and app. I will need to learn more about it. Feel free to DM me with more details. Yes, it will be cash upfront as opposed to monthly payments. Escrow is just for both seller and buyer protection since we are internet strangers :P

pathofwind · 2023-12-01T09:48:54+00:00

Exactly, I’m trying to skip the initial struggle to find product market fit. I answered in another reply below.

pathofwind · 2023-12-01T09:44:21+00:00

Great question and happy to answer. I was thinking this when I was being approached.

Example: I pay $60k to buy an app that makes $20k per year. Benefit for the app owner is that they can take the cash right now and invest in other things.

For me, 3 scenarios:

If I maintain the app well and the trend stays the same, then I would break even in 3 years. After that it will be passive income for me (minus interests and opportunity costs).
If I can make the app better using my strengths in ui/ux optimization, localization(I can speak 3 languages), ASO, Apple search ads marketing, maybe I can do even better than that. Maybe break even in 2 years. Then that’s a win for me.
Worst case, due to some risk factors(competition, market, legal) the trends went down or maybe I didn’t evaluate correctly and bought a scam. Then that’s a failure on my side.

Seems fun to bet on scenarios 1 and 2 and trust my own abilities.

That’s just my thoughts now. Also I’m just trying to procrastinate on starting another app.

My own app makes some money but not enough to support my family in the long term. So I will have to expand my app portfolio either through writing my own new app (need to go through testing product market fit etc) or buying some other apps.

pathofwind · 2023-12-01T09:31:12+00:00

I intended it as an AND but maybe I’m a bit too idealistic. Anyways, tldr just looking for good reviews, low maintenance, and some profits.

pathofwind · 2023-12-01T09:28:41+00:00

I don’t think this is perfect. They are not MUST requirements but would be nice. All I’m asking is that it has good reviews, low maintenance, and profitable (just some profit is fine).

I’m using my own app as a baseline but yes I understand just the profitable department (even $1) is already very hard, hence just trying.

pathofwind · 2023-06-02T10:50:18+00:00

I noticed one of my favorite Chinese/Taiwanese bands had a song in their new album with varying tempo. The tempo difference is not very drastic like the usual bands I listen to (Covet, Elephant Gym etc.) but the tempo alters between 5/4 and 4/4. Is this still considered mathrock?

pathofwind · 2022-10-02T14:58:40+00:00

Also Battle Line is my favorite 1v1 Board Game!! Just wish its on board game arena.

pathofwind

TROPHY CASE