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12 Jul 2012, 15:09
Gerry Koh (1 post)


My first apps are revenue sharing agreements.. like if the app sells for $1.99 i need to pay out $.50 to my client for each copy sold. I wasn’t concerned about profitability with these first few apps, but i wonder how you guys handle these situations?

I haven’t made it all the way though iTunes Connect yet to launch one, so the best case scenario is that iTunes takes in multiple bank accounts and tax ids and just does everything for me (which would be sweet!)

Assuming that isn’t the case, I would love some guidance on how to handle this.

If iTunes sends my (say) $1.50 for each copy sold, i pay tax on that as income. If I then send $.50 to my client in a monthly check, they have to pay taxes again on that amount?

Since I didn’t care about the financial analysis when I started these apps, they may not sell that many copies. A few bucks a month isn’t really worth it for me to have to deal with the check writing and tax hassles, so i thought i might just give these apps to the clients.

would they need to register their own developer accounts and launch these apps themselves?