Last November, Apple announced the ‘Small Business App Store Program’, a special program for developers with certain features. The benefits of this program are delicious since the commission is reduced from 30% of the App Store to 15%. However, the conditions to be part of the program are have less than a million dollars in annual revenue from all of your apps. A few days ago, Apple began notifying the program’s arrival to developers who have signed up and will begin its commission reduction in 2021.
Comienza a andar el ‘Apple Store Small Business Program’
This new program addresses this goal because it will help entrepreneurs finance their businesses, take risks with new ideas, grow their teams, and continue to build apps that improve people’s lives.
The Connect App Store closes for the holidays from December 23 to 27
To understand the meaning of this movement of Apple, it is necessary to know how commissions work in the App Store. When a developer publishes an app, 30% of all revenue from the app goes to Apple’s coffers. However, in November, Apple launched a new program called ‘App Store Small Business Program’, which tried to reduce this commission for “small” developers. The commission reduction program has very simple rules:
- Developers already in the App Store with revenue of $ 1 million or less in 2020 for all of their apps, as well as new developers, are eligible for the program and the reduced commission.
- If a participating promoter exceeds the income threshold of $ 1 million, the usual commission will be applied for the remainder of the year.
- If a developer’s business falls below the $ 1 million threshold in a calendar year, they will be eligible for the 15% commission the following year.
The deadline for submitting applications was Dec 18 and the figures suggest that around the 98% of developers meet the program criteria. However, not all will have asked to be part of it. In fact, Apple started to notify developers of its arrival to the program with the following message:
We are happy to welcome you to the App Store Small Business program. The commission rate on your apps and in-app purchases will be 15% effective January 1, 2021, so you can invest more resources in your business to continue building great apps that customers will love.