Co-founder & CEO of STRV. Forbes 30under30. Startup-minded entrepreneur passionate about cutting-edge technology and adventurous lifestyle.
If you’re just beginning to explore how to monetize your app, one reality hits hard and fast: Apple and Google will take a significant cut. And not just a small one—we’re talking up to 30% of revenue from in-app purchases. Yes, there’s a reduced 15% rate for small businesses making under $1 million annually, but let’s be honest: If you’re serious about scaling, $1 million is just the start.
The good news? There are ways to reduce or avoid these fees altogether. This article offers a high-level overview of where things stand as of April 2025 and what app founders need to know before diving in.
The Reality Of App Store Policies
Apple and Google’s policies are evolving, but the core struggle remains the same: They control the ecosystem, and they want their share of the revenue. Due to increasing regulatory pressure, particularly from the EU, these tech giants are being forced to loosen their grip—but only where necessary.
Apple’s compliance with the EU’s Digital Markets Act (2024) now allows developers to distribute apps outside of the App Store within the EU and integrate external payment systems. However, Apple still takes a reduced commission of 10% to 17%, depending on the payment method used. And crucially, this flexibility ends at the EU’s borders.
Meanwhile, Google’s User Choice Billing program offers a slightly more lenient approach. Developers can provide their own payment methods alongside Google’s, though reduced fees of 11% or 26% still apply. And while Google allows sideloading apps on Android devices, this option isn’t practical for mainstream adoption since most users prefer the convenience of official app stores.
Exceptions And Loopholes
Apple’s policies include a few exceptions—but not out of generosity. These allowances result from legal battles and regulatory requirements. For example, reader apps like Netflix and Spotify can now provide links to external sign-up pages due to pressure from Japan’s Fair Trade Commission. Additionally, legislation in the Netherlands and South Korea has forced Apple to allow external payments for dating apps, but even then, Apple still collects a slightly reduced cut (27% and 26%, respectively).
The takeaway? Apple’s ironclad policies are starting to bend, but only when outside forces compel them to. For the rest of the world, Apple’s restrictive rules remain firmly in place.
Making Hybrid Models Work For You
One of the most effective strategies for reducing Apple and Google fees is implementing a hybrid model. This approach combines in-app purchases with external payment systems to maximize revenue while minimizing fees. The idea is simple: Offer in-app purchases for users who prefer the simplicity of paying within the app, but also create a web-based payment system for your most loyal users—those willing to take an extra step to support your app and avoid the hefty fees.
Why go hybrid? Because if your user base is strong and willing to jump through that extra hoop, the savings are undeniable. Directing users to pay outside of the app means you bypass the 30% cut Apple or Google would otherwise claim. However, the execution has to be smart. While this approach can save significant revenue, it also means you could be sacrificing some of the organic traction provided by App Store visibility.
Let’s look at how this works in practice.
Suppose you’re launching a health app with a highly dedicated user base willing to pay $15 a month for premium features. If you convert just 5% of your 100,000 users, that’s $75,000 in revenue every month. But if you’re locked into Apple’s in-app purchase system, you’re handing over $25,000 every month in fees.
Here’s where the hybrid model shines. You offer in-app purchases for convenience but encourage your loyal fans to subscribe via your website. They sign up, pay and then log in to the app—with no 30% fee in sight.
But here’s the catch: If users download your app, hit a paywall with no clear way to pay and bounce, you’ve lost them. This is why the hybrid approach requires careful strategy and messaging. Done right, it can transform your revenue stream. Done wrong, it can cost you users before they even get a chance to experience what you’ve built.
Alternative Distribution: Worth The Hassle?
If you’re trying to avoid Apple and Google’s fees altogether, alternative distribution methods may seem appealing, but they’re not without their own challenges. Sideloading apps or distributing them outside of official app stores can help you bypass fees, but at a cost.
Google’s sideloading flexibility and the User Choice Billing program give developers some leeway. But the reality is that most users won’t jump through hoops to download an app. And while Apple’s EU compliance with the Digital Markets Act offers a way around App Store fees, it’s limited to the EU. If your audience is global, this method won’t cut it.
A hybrid model is often the most practical solution for avoiding excessive fees without sacrificing reach. By giving users the choice between a seamless in-app payment experience and an external payment system, founders can reduce fees while still benefiting from App Store visibility. The key is understanding your audience and gauging how willing they are to follow your preferred payment process.
Making The Best Move
It all comes down to knowing your audience and choosing the right strategy. If your users are loyal enough to jump through a couple of hoops to avoid paying through the App Store, directing them to a web-based payment system can result in huge savings. But if your growth heavily relies on organic traffic from the App Store, you’ll need to tread carefully.
Apple’s rules remain strict outside of the EU, and Google’s flexibility has its own limitations. The takeaway? Stay informed. Stay agile. And wherever possible, take control of your revenue.
Stay tuned for my follow-up article on how to optimize your cloud infrastructure costs—another major expense app founders can’t afford to overlook.
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