Revenue and Expenses
Membership revenue = 5000 silver-level members x $10/year/member + 1000 gold-level members x $60/year/member = 50,000 + 60,000 = $110,000/year. Converted-user revenue = 10,000 users x 2 conversions/user x $1/year/conversion = $20,000/year. Gross annual revenue = $130,000. Mike's salary = $20,000/year. Google AdWords expenses = $20/day = $7300/year. Payment for Google's cut of Android-based revenue = 130,000 x 10% = $13,000/year. Net annual revenue = 130,000 - (20,000 + 7300 + 13,000) = $89,700. Subtracting say $15,000 for web hosting leaves roughly $75,000.
Let's say that gross annual revenue is 4 x 130,000 = $520,000. Number of silver-level members is 20,000, number of gold-level members is 4000 and number of converted users is 40,000. Then net annual revenue = 520,000 - (20,000 + 7300 + 52,000) = 520,000 - 79,300 = $440,700, neglecting web hosting expenses.
Feature Chart
| Bronze | Silver | Gold | User class |
| free | $10/yr | $5/mo | Membership fees |
| X | X | X | Bronze app in grayscale |
| – | X | X | Silver app in color |
| – | – | X | Gold app in color |
| X | X | X | Color app post-conversion |
| $1/yr | $1/yr | $1/yr | Conversion fees paid by app authors |