Announced last month, Apple has now launched their “App Store Small Business Program” that reduces App Store fees from 30% to 15% for developers earning less than $1 million per year.
The new App Store Small Business Program is designed to accelerate innovation and help propel developer’s small businesses forward with the next generation of groundbreaking apps on the App Store. It features a reduced commission rate of 15% on paid apps and in-app purchases, so developers can invest more resources into their business to continue building quality apps that customers love.
• Existing developers who made up to 1 million USD in proceeds in 2020 for all their apps, as well as developers new to the App Store, can qualify for the program and the reduced commission.
• If a participating developer surpasses the 1 million USD threshold, the standard commission rate will apply for the remainder of the year.
• If a developer’s proceeds fall below the 1 million USD threshold in a future calendar year, they can re-qualify for the 15% commission the year after.
• Developers must identify any Associated Developer Accounts to determine proceeds eligibility.
To participate in the program, developers and their Associated Developer Accounts must have earned no more than US$1 million in total proceeds (sales net of Apple’s commission and certain taxes and adjustments) during the 12 fiscal months occurring within the 2020 calendar year, and have earned no more than US$1 million during the current year.
Submit your enrollment by December 18, 2020, at 10 a.m. PST to receive program benefits by January 1, 2021 here.
MacDailyNews Take: Apple’s App Store Small Business Program will greatly help smaller developers and lead to greater innovation. Bravo, Apple!
We think the ultimate ending to this legal challenge will be that developers will be able to take payments in their apps without being forced to give Apple a cut or as much of a cut as today… A smaller fee may be tenable, as Apple does have costs to run the App Store, of course. — MacDailyNews, May 14, 2019