Founders of Fanhouse, an OnlyFans-like platform, say Apple is demanding they start paying “30% of creator earnings” by August or be removed from the App Store

Fanhouse wants to keep sending 90 percent of payments to creators — Apple is clashing with the platform Fanhouse …

The Verge 2021-06-10 Jacob Kastrenakes

Context & Ripple Effects

Fanhouse runs on a creator-friendly split that sends 90 percent of payments to creators, which puts it squarely in Apple's path as the company enforces its 30 percent in-app-purchase commission across subscription-style apps. The demand lands on a small platform with no obvious leverage: comply by August or vanish from an App Store that Apple says draws more than 800 million weekly visitors.

The precedent matters beyond one app — the related coverage shows the same fight recurring across categories, from NFT startups limiting iOS functionality under commission pressure to Facebook drafting plans for a comparable 30 percent cut of fan subscriptions back in 2019. Fanhouse's outcome became a template other creator platforms would be measured against.

First-order effects

Fanhouse must either hand Apple 30 percent of creator earnings by August or lose its iOS distribution entirely — a direct threat to the 90-percent-to-creators economics that define the platform.

Second-order effects

Rival creator platforms faced the identical ultimatum: Patreon ultimately put iOS memberships under Apple's 30 percent fee with mandatory subscription billing, while some NFT startups limited their iOS app functionality rather than pay commission on every trade.

Third-order effects

When Fanhouse later introduced a 50 percent surcharge on iOS purchases, it established the pattern now standardizing across the creator economy: Apple's take rate gets passed through to creators as a platform-specific price, effectively splitting the App Store into a more expensive channel.

The trend: Apple is systematically extending its 30 percent commission to the creator economy, forcing subscription platforms to choose between surcharging iOS users, crippling features, or exiting the App Store.

Discussion

@jasminericegirl @jasminericegirl on x
#fuckapple, a thread I cofounded @fanhouseapp 8 months ago to empower creators to monetize their content. We pay creators 90% of earnings. Now, Apple is threatening to remove Fanhouse from the app store unless we give them 30% of creator earnings. This is theft and exploitation.
@benedictevans Benedict Evans on x
Posit: conversations about take-rates for things that don't have marginal cost really need to talk about conversion rate as well. You get 97% on a card and 70% on an IAP - but is that 70% of a bigger number? https://twitter.com/...
@megturney Meg Turney on x
If you've ever wondered why @OnlyFans doesn't have an app - this is probably why. Apple seriously needs to chill. https://twitter.com/...
@chrisamccoy McCoy on x
Decentralized apps WILL NOT get distro into app stores until the governance of the protocol they are building on figures out how to pay either fees and/or block rewards to the platform overlords. The decentralized monetary system for @thestorecloud will do this. https://twitter.c…
@ljin18 Li Jin on x
Recently, @nbashaw and I wrote about how Apple's policies were hurting creators, and proposed various solutions like optional IAP use & sideloading apps. https://every.to/... Now, @fanhouseapp is using their platform to advocate for creators: https://www.theverge.com/...
@dianelyssa @dianelyssa on x
“Apple allows Patreon to offer third-party payment solutions for creators rather than use in-app purchases, avoiding the fee. Other apps aren't afforded that privilege.” Neither Apple nor Patreon responded to questions from @verge about this exception. https://www.theverge.com/..…
@almostmedia Julie Fredrickson on x
The narrative machine is not looking good for Apple zeitgeist https://twitter.com/...
@mr312 Steven Galanis on x
This is why @BookCameo didn't allow in app purchases for it's first three years... 🍎 shouldn't make more from Cameo than Cameo makes from Cameo 🤷🏽‍♂ ️ https://twitter.com/...
@aidan_smx Aidan Smith on x
My best friend is able to pay her bills because of Fanhouse and she, like everyone else on the platform, is going to be massively screwed over if this ends up happening. If you care about holding Big Tech giants accountable, you should be speaking out about this. https://twitter.…
@rex_woodbury Rex Woodbury on x
Apple needs to modernize its policies for the creator economy. Here's a thread from @jasminericegirl and @fanhouseapp about how Apple's 30% cut is directly hurting creators https://twitter.com/...
@ballmatthew Matthew Ball on x
2/ It's hard to know how much is an echo chamber, but the anti-Apple sentiment among the Techeratti feels pretty unprecedented right now https://twitter.com/...
@pt Parker on x
I'm genuinely confused about why this story is framed as Apple screwing a company and not a company scamming Apple and building an unsustainable (according to them) biz model that relied on that scam continuing indefinitely. Don't do scams, folks. They bad. https://twitter.com/..…
@ashhhhhhole Woahh Mann on x
fanhouse has been my main source of income for the past 7 months. if apple takes 30% of my total earnings i won't be able to afford my bills every month #fuckapple https://twitter.com/...
@dianelyssa @dianelyssa on x
“This money really means a second job for some people, that they have a place to live, that they can afford tuition,” @jasminericegirl says. “And we tried to explain this to Apple.” Fanhouse has offered to hand over 30% of their profits to Apple instead. https://www.theverge.com/…
@avagg Ava on x
Name a greedier company than @Apple . They want to take 30% on all our transactions on fanhouse. I'm sorry Apple? That cut is more than any agency or management I've ever worked with. @fanhouse only takes 10% and they are even willing to take less by giving y'all a % of that? htt…
@itsmariannnna Mar on x
i've been relying on my fanhouse earnings as my income for the past 6 months. i would be homeless if it weren't for the money i make on there! if apple takes a 30% cut of my earnings i can no longer pay rent or afford my necessities!! #FuckApple https://twitter.com/...
@steven_aquino Steven Aquino on x
I noticed @jasminericegirl tweeting about this earlier today. Week of all weeks, this is a bad look for Apple during WWDC. I feel for Fanhouse. This whole App Store cut deal is untenable, the “we painted ourselves into a thermal corner” situation but for the App Store. https://tw…
@dianelyssa @dianelyssa on x
Apple is at it again, demanding a 30% cut of earnings paid to creators on @fanhouseapp if they want to remain in the app store. “I use this to pay the bills for my family. I use this to pay my mom's medical expenses.” https://www.theverge.com/...
@spencerdailey Spencer Dailey on x
@Techmeme @jake_k if they get to give 100% of revenue to creators until August, that is a major coup for Fanhouse, regardless of how unfair the rule is in the first place. More apps like this should push this envelope! 💸
@all_f808z @all_f808z on x
Apple is predatory af for this... They want 30% of all earnings yet they do nothing https://twitter.com/...
@sammajammaz @sammajammaz on x
I will lose a whole months worth of rent every single month thanks to Apple if they steal 30% from us. https://twitter.com/...
@jasminericegirl Jasmine on x
thank you @TheVerge for the incredible coverage on this issue https://twitter.com/... https://twitter.com/...
@fanhouseapp Fanhouse on x
As said in the thread, we will do everything in our power to continue making Fanhouse an enjoyable platform and defend creators' income. You can still download the app from the app store, and the website will always be fully functional. Fanhouse is not going anywhere. #fuckapple …
@seyitaylor @seyitaylor on x
It's going to take a very long time for stuff like this to bubble upwards. And maybe it never breaks through. But I think that creator relations is Apple's real Achilles heel. https://twitter.com/...
@seyitaylor @seyitaylor on x
Confused as to why they let it become this talking point. Do they make enough money from the App Store for it to be worth the hassle.
@reckless Nilay Patel on x
As more and more creators start seeking direct payment in various ways, they're going to run straight into Apple. It's already messy: https://t.co/tEX1CPlbbK
@jasminericegirl @jasminericegirl on x
If this 30% is crazy enough to seriously hurt big companies, imagine what it does to a small startup. In our case, as a creator company only taking 10% of transactions, we don't even have 30% to give Apple. The money would come directly from creators' pockets.
@jasminericegirl @jasminericegirl on x
We've also tried to ask for creative solutions to comply with Apple. Plenty of subscription apps are in the app store without using in-app-purchases subject to the 30% tax—many of which are billion-dollar corporations. Netflix and Spotify are two apps allowed payment exceptions.
@jasminericegirl @jasminericegirl on x
To date, I've made over $20k as a Fanhouse creator. 30% of that is $6,000. That's months of rent. That's my mom's medical bills. That's my brother's tuition. When Apple insists on taking 30% of all transactions, they're taking it from the pockets of people who need it the most.
@jasminericegirl @jasminericegirl on x
This policy doesn't just affect creators on Fanhouse, but creators across the board. It's why so many creators only get to see around 50% of their earnings across various platforms, including Twitch, Tiktok, Cameo, and soon Twitter as it rolls out monetization. https://twitter.co…
@jasminericegirl @jasminericegirl on x
Even though we've just started, I know what we're doing makes a difference. I am asking Apple to give startups a chance. I am asking Apple to give creators a chance. The creator economy can never grow for as long as Apple demands 30% from creators. @apple @pschiller @tim_cook htt…
@jasminericegirl @jasminericegirl on x
In writing and over the phone, we explained to Apple that we could pay them 30% of our revenues (from our 10% take rate). It'll be harder to cover costs and build features as a startup, but at least it'd be coming from us. Apple insisted on taking 30% of creators' total earnings.…
@jasminericegirl @jasminericegirl on x
Over 700 creators have made money on Fanhouse. We've paid out over $1 million to creators in the last 8 months, and I know that's nothing to Apple, but I am very proud of that. When creators share stories about how Fanhouse has changed their life or helped them in some way, I cry…
@jasminericegirl @jasminericegirl on x
I was the first creator on Fanhouse. I grew up on food stamps, my family has over six figures of debt, and we live paycheck to paycheck. I single-handedly provide for my family, and I rely on my Fanhouse as a crucial revenue source to do so.
@jasminericegirl @jasminericegirl on x
Creators put in all of the work to get back LESS THAN HALF of their earnings after taxes. How is this okay? By comparison, @stripe, which we use to process web payments, takes 3% of transactions. Apple is FORCING people to pay TEN times that. This is theft and exploitation.
@scobleizer Scoble on x
This is the new Apple also. Apple is forcing everyone to pay its fee. Big and small. https://twitter.com/...
@daveleeft Dave Lee on x
“People who are relying on their creative income as a means to support themselves will now find themselves being taxed by Apple more than they would by their own government.” https://twitter.com/...
@carnage4life Dare Obasanjo on x
It's no longer hypothetical that Apple's 30% cut will hurt creators. They have threatened to pull @fanhouseapp from the App Store unless it adds IAP integration where they get a 30% cut. Apple will be collecting more tax from creators than the IRS. https://twitter.com/...
@taylorlorenz Taylor Lorenz on x
Important thread on Apple vs Creators https://twitter.com/...

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