My app Twitter Archive Eraser (https://martani.github.io/Twitter-Archive-Eraser) used to be free, then I added a donation button and people, while barely donated, used to say that this is something they would have paid for!
I worked on a paid tier (learnt a tremendous amount about actually selling an app, integration with payment processors, licensing, more legal stuff than I wanted to etc.)
Almost from the get go, it started making +$3k/mo. With more changes and offering a Mac version along a Windows version, it averages around +$7k/mo of revenue consistently. I'm the only person on it and have a full time job. Barely need to make code changes and it requires minimal effort for customer support.
It depends on your situation but if you are in the US I'd create an LLC and do business with that. It takes a few minutes if you use services that file for you.
Second will be dealing with sales tax and it's a nightmare. If you sell to customers in Europe you need to pay VAT to different countries at different rates. Same goes for US states that tax very differently. We moved recently to paddle.com which acts as a reseller and so they take care of all sales tax collection and remittance (they are the one selling the app after all). We moved away from PayPal and so far it's been very smooth.
You can also do what I do and just ignore those foreign taxes, on both practical and philosophical grounds.
On a practical level, no foreign government is going to bother you until your sales are in the millions, at least. They don’t have the ability to know your sales in the first place, and you’re way too small to bother trying to go after. Especially since there’s no real enforcement mechanism for, say, France to try and collect $200 from some random American online software business.
Philosophically, I vehemently disagree with the premise that a foreign jurisdiction can tax my business because their citizens choose to visit my website and buy things. Should German websites pay a 200% tax if citizens of Eritrea buy things from their website, just because Eritrea passes a law that says that? I have zero representation or connection to these jurisdictions, and if they want tax money or to stop their citizens from using my website, that’s between the citizens and their government. Until there’s some enforcement mechanism, I’ll just keep ignoring them like I always have.
How about sales taxes in the US. Do you keep records to when you hit tax nexus and start collecting it then? Manually or using some service? I'd be interested in learning how you approached this problem.
I second this. If you sell worldwide, there isn't any reason for you to handle the taxes and payment methods on your own. Actually, there's a whole bunch of companies that would do that for a relatively small cut (about 5% give or take). From the top of my head: 2Checkout, Bluesnap, DigitalRiver, FastSpring. I don't know much about Paddle, but they spammed me quite aggressively using the email from a leaked LinkedIn dump, so I'm not sure how much I would trust them.
Not that it matters, given the clear demand for the product, but there's a typo in the "Performance" section of the link. The body copy "performance" is "performace"
Congrats on a product successful from the beginning!
Indeed. The original version was C#/WPF and worked on windows only. I got so many requests for a Mac version and knew it was decent demand. So I switched to electron: 1 code base works for Mac and windows plus has automatic updates for when bug fixes are released etc.
And sure enough Mac users account for 30% for the revenue today.
Another advantage is that it runs completely on the user's computer. So I have no database or back-end to maintain. There is only a small server to generate licenses + handle some analytics the app emits both built on ASP.NET. The only data I store is in a Microsoft Azure table. I pay around $2 a month for all azure costs.
It's in-house. A license has some info tied to the user (which ultimately has to be the Twitter user connected via Twitter). Then all that is signed with a private key ECDSA. The app has the public key and can verify the signature. Many libraries are available for handling cryptographic signatures.
So basically a license is public info, the app enforces that the logged in user must match the user in the license.
Sorry about the late comment (hackernewsletter) but I found the pricing page a bit confusing, since you mention both "one-time payment" and license valid for one year".
Do I have to pay every year to keep using the app?
good for you but its sad this is a viable business. Imagine being a working adult and getting in trouble for something you thought was funny as a high school freshman.
The app was developed for use for myself. Then I put it online for other to use for free. The advantage (and probably missing part in the original description) is that the app was free for +5 years before I added a paid tier. So we already had a decent user base.
I worked on a paid tier (learnt a tremendous amount about actually selling an app, integration with payment processors, licensing, more legal stuff than I wanted to etc.)
Almost from the get go, it started making +$3k/mo. With more changes and offering a Mac version along a Windows version, it averages around +$7k/mo of revenue consistently. I'm the only person on it and have a full time job. Barely need to make code changes and it requires minimal effort for customer support.