- How Do I Become a Seller?
- How Do I Get Paid?
Within 10 days of the end of the month, OnApp will pay the Seller the credit in excess of the Buyer Balance (subject to a minimum excess credit of $100). Payments will be made to the same credit card from which the Top Up is drawn.
- Can I Use the Money I Earn to Pay for Other Services?
Yes, you can. OnApp will apply credit balances to your purchases from the Market or other subscriptions with OnApp. This will help reduce credit card fees for us all.
- Who Does the Invoicing?
OnApp will raise and send you one invoice per month on your behalf for all resources consumed by the Buyers. No matter how many Buyers consume your resources, it is still just the one invoice. This invoice is from you to OnApp. You should process it at your end just like any other invoice you raise on a customer.
- How Does Sales Tax Work?
OnApp applies VAT only to the services from Sellers who themselves are based within the EU. No VAT or Sales Tax is applied to services of Sellers based in other jurisdictions. In general this means VAT is added to funds earned in the Federation for Sellers based in the UK, and non VAT-registered Buyers elsewhere in the EU. The VAT transaction is between the Seller and OnApp - it is not passed through to the Buyer.
- How Do I Price Federation Capacity?
Pricing the zones you publish to the OnApp Federation is quite straightforward. However, when you sell on the OnApp Federation, there are three key differences that you need to take into consideration:
1. Don't include CPAs or support
Your Federation zone pricing should not include sales and marketing costs (CPAs) or support costs, because the OnApp Federation takes care of that for you.
Transparent performance and uptime data is the keystone of the OnApp Federation. We benchmark and monitor uptime for every zone published, and provide this alongside price and location data, so that buyers can make an informed decision about the infrastructure they will use.
Therefore, infrastructure with a high cost per hour will compare unfavorably with lower-priced infrastructure, unless there is a clear benefit to the buyer. That benefit can come in many forms: an unusual location, exceptional bandwidth, uptime or compute power, outstanding storage throughput and (in the future) other metrics like privacy, DC certifications and carbon neutrality.
3. Favor the long game
You should also consider reducing the margin you usually work towards for your Federation zones. In a transparent, on-demand marketplace, there is more benefit to have large numbers of buyers use your infrastructure in the long term, by offering them additional margin, than there is in trying to maintain the margins you work towards for direct clients.
How to price for the OnApp Federation
Taking that into consideration, your Federation pricing calculation should look like this:
- Cost of Hardware
- Cost of Infrastructure (DC, bandwidth, etc.)
- Cost of Logistics (reduced, as it does not cover support and CPA related activities)
These points constitute the Total Cost B.
Federation Price = Total cost B x Profit % (possibly lower than normal)