My marketplace app has been live for about 2 months now. Sellers list products with me, I handle the transactions, and then charge a 15% commission.
If I pulled in, say, $500 last month on commission, how do I figure out what my margin on that is?
My expenses are my time (I'm not paying myself anything) and my monthly hosting fees (about $40).
So, is my margin as simple as ($500 - $40) / $500?
I anticipate spending money on a graphic designer. When I do that, would that cost go against the margin?
What about PPC advertising? If I spend on that, where does that go?