Fanhouse, an OnlyFans-like platform, introduces a 50% surcharge for iOS IAP's, after pushing back in 2021 on Apple's 30% commission on creator earnings
Fanhouse previously tried to push back against Apple's fees and was granted a six-month extension to come into compliance
The VergeMia Sato
Context & Ripple Effects
In June 2021, Fanhouse's founders said Apple demanded 30% of creator earnings by August or the app would be removed from the App Store; they won a six-month extension instead of a reprieve. The surcharge announced today is what compliance looks like once that extension ran out.
iOS subscribers buying Fanhouse creator subscriptions through IAP now pay roughly 50% more than web purchasers, because Fanhouse is passing Apple's 30% commission through as a surcharge rather than absorbing it from its own take or creators' earnings.
Second-order effects
Creator platforms watching this face a fork with named precedents: follow Fanhouse and price-differentiate iOS users, or follow the NFT startups and strip iOS purchasing entirely — while Meta's boost-fee plan shows Apple applying the same leverage to advertising products, not just digital goods.
Third-order effects
If surcharging becomes the standard response, Apple's commission effectively becomes a visible line item on iOS purchases across subscription and creator platforms — shifting the political fight from private negotiations like Fanhouse's 2021 standoff toward regulator scrutiny of how the fee is imposed, as already seen in the Dutch dating-app dispute.
The trend: App Store fee disputes are moving from behind-the-scenes standoffs to consumer-visible pricing, as platforms either surcharge iOS buyers or amputate iOS features rather than absorb Apple's 30%.
Fanhouse is a start-up I founded to empower creators, and we pay our creators 90% of transactions. Apple is kicking us off the app store unless we give them 30% of all transactions. Apple is a trillion-dollar company, and they get there by exploiting the labor of others. (1/)
as a result of apple's b.s., we're releasing a currency on our mobile app called coins. implementing this was the only way we could stand by our creators & values without apple taking our app down. here's how coins work, and how users can avoid apple's exploitative tax. 🧵(1/9)
In today's On Tech: From a $5 payment to your fav YouTube channel: Apple gets $1.50 YouTube gets $1.05 The channel gets $2.45 How Apple's in-app payment fees ricochet to online creators. They are not happy about it. https://www.nytimes.com/...
Many creators are going to find that although they spend a lot of time creating, a lot of the content they create is undifferentiated and won't be worth paying for by their followers. Big Tech needs to find new methods to share some(or more) of that ad revenue https://twitter.com…
Companies as powerful as Apple can sometimes extract money from people without delivering any service in return, but such exactions become potential energy driving new competitors. https://www.nytimes.com/...
as a result, you now need to purchase coins before you can purchase anything in-app. if bought on web, coins are a 1:1 on money spent to coins received. 2000 coins costs you $20, and can be used to buy content priced at $20. (3/9) https://twitter.com/...
This is what the Fortnite / Epic vs. Apple lawsuit was about. A judge ordered Apple to allow developers to direct people to payment outside of the App Store, but Apple appealed (nyuk nyuk), citing security risks, and the order was stayed. https://www.theverge.com/... https://twit…
If a platform developer doesn't charge their creators a commission, Apple doesn't get a cut either - great. But should the developer decide to keep even 1% to run their own business, Apple asks for almost a THIRD of the ENTIRE transaction - how does that make any sense? https://t…
It's unfair and it's infuriating that we're not allowed to do anything about it. We're not even allowed to tell users there's a markup in the app, and that on web things cost 40% less, because then Apple won't get to exploit everyone as much. (15/)
however, on our app (iOS & android), 2000 coins costs $30, as it has an upcharge that accounts for the 30%. we HIGHLY encourage that you buy coins on web if you want to use them on the app. this will avoid the upcharge, as your account's coin balance is cross-platform. (4/9)
Fanhouse has opposed Apple's 30% IAP tax for the last 6 months, and we've tried proposing solutions to them that wouldn't affect creators. We asked them to take their 30% from our cut, they said no. We asked them to take flat fees based on our revenues, they said no. (5/)
The entire @fanhouse team are badass for not backing down from Apple. And for those saying “why do you expect them to allow you to use their Store for free” they have said NUMEROUS times that they would pay from their own pockets! But they refuse to take money from creators. http…
Apple is an absolute vulture and it's not even surprising. Support Fanhouse and creators on it through their website instead of the app. They've been trying to keep the app as beneficial for creators as possible. Apple doesn't need or deserve a 30% cut for doing jack shit. https:…
to thank y'all for being with us through everything — and as an extra 🖕 to apple — we want to give 1000 coins ($10 value) to EVERYONE who replies to this tweet with their FH handle and the handles of up to 4 friends!! 💵✨ https://twitter.com/...
Just know that on web, NOTHING HAS CHANGED. If you are supporting creators on Fanhouse, do so on web. There is NO extra markup and creators get 90% of transactions. Creators, please tell your subscribers to purchase coins on web, which they can then use in the app. (21/)
TLDR: Fuck Apple, support creators, and buy coins on web at https://fanhouse.app/. Creators deserve to be paid fairly, and no one should stand in the way of that, not even a trillion-dollar corporation.
thank u @nytimes for the shoutout and for amplifying how predatory app store fees are not just on companies, but for so many individual creators who are just trying to earn a fair income https://twitter.com/... https://twitter.com/...
If the app wants you to enter payment information, don't. It means “give Apple 30% of your money.” Purchase coins on web, and you can freely use them in app after. It's annoying, but it's our best way to ensure creators are paid fairly & that you aren't being overcharged. (22/)
And what will never make sense to me is that Apple does not actually make all apps pay this tax. Spotify & Netflix, for example, can have subscriptions without paying anything to Apple. Patreon, which works just like Fanhouse, doesn't pay anything to Apple. Odd, isn't it. (17/)
Don't buy your coins on the Apple app for @fanhouse , do it on your computer because Apple is a dick. Read more here: https://twitter.com/... https://twitter.com/...