The App Store Small Business Program allows developers who earn less than $1 million per year to pay only 15% of sales to Apple, and enrollment has begun.
Apple has charged developers 30% of revenue on app sales and in-app purchases to operate on the App Store, only changing the percentage for subscription apps that kept users subscribed for more than a year. Now Apple has changed its guidelines to enable developers who are paid by Apple less than $1 million per year to pay only 15% of the revenue.
Developers must meet these requirements to be a part of the App Store Small Business Program:
- 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.
The percentage change impacts at least 98% of all developers on the App Store.
This move comes after pressure from major developers and government inquiries questioning Apple's monopoly position. The move proved popular among many developers, though some large developers do not believe the change to be enough to satisfy their issues.
Apple highlights the steps to enroll:
- Be an account holder in the Apple Developer Program
- Review and accept the latest Paid Apps agreement
- If applicable, list all of your associated developer accounts
Developers who want to pay the reduced 15% in revenue can sign up as of Thursday to have the reduction take place on January 1, 2021. In order to qualify for benefits by January 1, developers will need to complete enrollment by December 18 at 10AM PST.