Re:Thoughts on Earning $100,000 in 4 Months for an Indie Mac...
by rickcolosimo on Sunday March 08, 2015 @10:33AM
(#9165680)
Actually, that is your net revenue number. You have gross revenue of $172k, minus a cost that isn't really part of your operations (Apple's cut), leaving you with net revenue.
Costs of goods sold (COGS) (or cost of services) is deducted from revenue to give you a gross profit number, from which are deducted sales, general, and administrative expenses (SG&A) are deducted to get you to gross income, and then taxes are deducted to get you to net income.
I often draft net revenue provisions in contracts when someone is getting a percentage commission from the gross but things like returns, credits, other commissions, etc. should in fairness be deducted from that number.
Not all companies use gross and net revenue -- it really depends on the size of the component that goes away. Apple, for example, should not report $172k of revenue but rather their $72k cut as their net revenue -- since they never have a right to that other money, it could/would be misleading for them to report it as part of their operations.
That's your hard work, not theirs. Congratulations.
Costs of goods sold (COGS) (or cost of services) is deducted from revenue to give you a gross profit number, from which are deducted sales, general, and administrative expenses (SG&A) are deducted to get you to gross income, and then taxes are deducted to get you to net income.
I often draft net revenue provisions in contracts when someone is getting a percentage commission from the gross but things like returns, credits, other commissions, etc. should in fairness be deducted from that number.
Not all companies use gross and net revenue -- it really depends on the size of the component that goes away. Apple, for example, should not report $172k of revenue but rather their $72k cut as their net revenue -- since they never have a right to that other money, it could/would be misleading for them to report it as part of their operations.
That's your hard work, not theirs. Congratulations.
i primarily did content marketing through blogs and paid sponsorships.