> For the complete documentation index, see [llms.txt](https://passion-io.gitbook.io/help/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://passion-io.gitbook.io/help/put-your-app-in-the-stores/store-commission-and-in-app-purchases.md).

# Store Commission and In-App Purchases

Understand what Apple and Google charge, when you pay it, and when to sell outside the app instead.

## In This Article

* [What an In-App Purchase Is](#what-an-in-app-purchase-is)
* [What Commission You Actually Pay](#what-commission-you-actually-pay)
* [Apply for the Reduced Rate](#apply-for-the-reduced-rate)
* [Choose Where to Sell Each Offer](#choose-where-to-sell-each-offer)

## What an In-App Purchase Is

A new client downloads your app for free and buys your product or subscription inside it, using their Apple or Google account. That's an in-app purchase.

Apple or Google processes the payment, and the client gets full access to your app content immediately afterwards.

To offer one, tick **In-app (iOS & Android)** under **Sell on** when you create the plan — see [Create a Plan](/help/sell-access-to-your-app/create-a-plan.md). Doing that submits an in-app purchase, which the stores review.

## What Commission You Actually Pay

The common belief is that Apple and Google take 30% of everything. They don't:

* **You don't have to sell through in-app purchases at all.** You can sell on the web app and still give access to the mobile app — the same approach Netflix and Spotify take.
* **In-app purchases are 15%** up to $1m a year in sales.
* **They rise to 30%** on in-app purchases above $1m a year.
* **Selling outside the stores costs far less** — PassionPayments is 3.9%, or you can use your own checkout URL and connect it to your app with Zapier. See [Connect Stripe and Zapier](/help/run-your-account/connect-stripe-and-zapier.md).

Commission applies only to what the stores process. A client who buys on the web and then signs into the app costs you nothing in store commission.

## Apply for the Reduced Rate

If you earn under $1m a year, both stores have a programme that puts you on 15%:

* Apple: the App Store Small Business Program.
* Google: the 15% Service Fee Tier programme.

You apply through your developer account. Neither is automatic — you pay the full rate until you've applied and been accepted, so do it before your first in-app sale rather than after.

## Choose Where to Sell Each Offer

In-app purchases suit low-priced offers and entry products, where the convenience of paying with an Apple or Google account is worth the commission and the friction of leaving the app would cost you the sale.

Higher-priced offers are better sold outside the app. The commission on a premium programme is real money, and buyers at that price are willing to go through a checkout.

Note that promoting an outside payment link inside the app breaks both stores' rules and gets apps rejected — see [Resolve an Apple Rejection](/help/put-your-app-in-the-stores/resolve-an-apple-rejection.md). Sell outside the app by pointing at your web app, not by putting a payment link in the app.

## Related

* [Create a Plan](/help/sell-access-to-your-app/create-a-plan.md)
* [Track Subscriptions and Set Up Payments](/help/sell-access-to-your-app/see-subscriptions-and-payouts.md)
* [Submit Your iOS App](/help/put-your-app-in-the-stores/submit-your-ios-app.md)

For more assistance, please contact us.