Apple To Lower App Store Commission To 15% For Small Businesses Earning Up To $1 Million A Year

Specifically, this program benefits developers who sell digital goods and services in the App Store, reducing their paid app and in-app purchase-related commissions. If the developer’s revenue in the previous calendar year could only end up with $1 million, they are eligible to participate in the program and enjoy a commission rate of 15%.

The Apple App Store Small Business Program will be officially available on January 1, 2021. Apple said that today’s global economy is facing unprecedented challenges, and small businesses and independent developers are still committed to innovation and success, so the timing of the launch of this plan is very critical. Under the pandemic, as companies have transformed to adapt to the virtual world, the importance of apps has been elevated to a new level. To continue to reach customers and communities, many small companies have launched or expanded their digital businesses. This plan to lower commissions means that small developers and aspiring entrepreneurs will have more resources to invest in and develop businesses in the App Store ecosystem.

Here are the criteria to enroll in this program:

• Existing developers who made up to $1 million in 2020 for all of 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 thresholds, the standard commission rate will apply for the remainder of the year.
• If a developer’s business falls below the $1 million thresholds in a future calendar year, they can requalify for the 15 percent commission the year after.