Monetizing your app

In 2023, the number of apps on Apple’s App Store reached 1.7 million. Users have the broadest choice of apps, while according to the latest data, they need no more than 10 apps per user on average. Under such circumstances, the most popular monetization strategies combine aggressive marketing campaigns, advertising, in-app purchases, freemium, and subscription.

In Setapp, we focus on long-term, trust and winning relationships with users and partners. Therefore, we sweep aside all of the above-mentioned monetization strategies for a clear subscription concept. Moreover, we further support this concept with a number of mutually beneficial principles:

• Strict entry requirements: only a small number of high-quality apps are privileged to join Setapp.
• Fixed monthly user fee: no additional charges, paid features, or advertising.
• Fair revenue distribution based on usage statistics and app market value.
• Guaranteed monthly income for those Partners who have engaged their own users.
• Sustainable user-application balance that allows every app to find its audience.

Learn monetization highlights in Setapp:

Subscription fee

Every subscribed user pays a fixed fee per month to get full access to all Setapp apps without additional costs, paid features, or advertising. User fees may vary depending on geography, subscription plan, or possible discounts. As the number of users grows, we're gradually adding more apps.

Trial period

When new users subscribe to Setapp, they get 7 days of free trial usage of any app within Setapp. We set no limitations during this period and do not ask to pay in advance. This is where both app developers and Setapp share the risks of providing a free trial period.

After the trial period is over, Setapp starts charging a regular monthly fee. At the end of the second month, we will have all the reports required for revenue distribution. It means that you, as a developer, start getting income from newly arrived users with a 2-2.5-month delay. The trial period of each new user will not bring any profit to Setapp or its Partners.

Tracking and statistics

The moment your app goes live on Setapp, it becomes available to every Setapp user. If a user opens your app, we know about it. The Setapp Library you’ve implemented in the preparation steps ​tracks the statuses of your app and reports them on a daily basis.

Every day, all reports from every user account get processed to split the payments between the apps that were used. A single use of an app during the payment period is enough to treat it as an active app. When a user makes a payment, we process this information to change your revenue statistics dynamically (see the Statistics page of your developer account).

Price tiers

Your part of the user payment depends on the number of active apps and price tiers they belong to. Setapp assigns each app to one of seventeen price tiers depending on the app’s last list price.

We consider only the price effective for at least three months outside Setapp. For example, if the cost of your app was changed two weeks ago, we will set a price tier based on the previously listed app price that was effective for 3 months. In the future, if you change the list price of your app and it remains effective for the following three months, we will adjust your price tier on Setapp.

Each price tier is tied to a specific multiplier directly used in revenue calculations. In a nutshell, the more expensive the app is, the higher the multiplier:

Subscription and fixed price

In Setapp, we first prioritize the app's annual subscription fee when defining its price tier. If you provide only a monthly subscription, the monthly fee is multiplied by 12 to define the price tier. So, if your app offers both a one-time purchase option and an annual subscription, the annual subscription fee will be decisive.

Read more about revenue calculations in Distributing revenue.

Change app price

You can request a new price and tier for your app on the “Account” > Price tier page of your online account.

By the moment of request, the price you’re shifting to must have been effective for at least 3 months outside Setapp.

20% Partner fee

20% Partner fee is a part of the monthly revenue you receive from every user you've brought to Setapp. It is guaranteed income that doesn't depend on used apps or statistical data. If a user remains in Setapp and pays the subscription fee, you continue to receive regular revenue.

Partner fee is one of the key factors that directly affect the amount of revenue you receive. Therefore, the easiest way of raising your profit is converting your current one-purchase users into regularly paying Setapp users through invitations. Another good opportunity is placing the Available on Setapp badge on your product pages.

The latter solution allows app developers to earn more and minimizes the risks of losing profit. Here are the common cases of how Available on Setapp badge works when a user comes to your website and gets interested in your product:

• A user is already a Setapp user.
  One-click on the badge next to your app opens its preview screen (or the app itself) on the user's Mac. So, you start earning from this user immediately.
• A user isn't a Setapp user but wants to find out more about it.
  This is where you win twice. Firstly, you bring the user to Setapp and receive 20% of all the fees of this user. Secondly, your share of Setapp revenue is based on your app usage statistics.
• A user isn't a Setapp user and doesn't get interested in Setapp.
  In this case, your user continues within your typical sales funnel.