Apple has started sending emails to developers who are eligible for its Small Business Program that reduces the commission rate from 30% to 15% on their app sales, as long as their annual revenue is less than $1 million.
The program was announced over a month ago and allows eligible developers to apply for a reduced commission rate for Apple’s cut. Apple is not automatically enrolling all developers, and they have to apply to participate in the program, which starts from January 1, 2021.
Apple sends out emails to eligible developers for its App Store Small Business Program
Apple’s App Store Small Business Program is primarily aimed towards independent developers. As per a report, more than 98% of app and game developers qualify for the reduced 15% commission program, leaving out bigwigs like Epic, Spotify, and others, that have been complaining about Apple’s commission rates.
Apple has sent the below confirmation email to developers:
We’re pleased to welcome you to the App Store Small Business Program. The commission rate on your paid apps and in-app purchases will be 15% by January 1, 2021, so you can invest more resources into your business to continue building quality apps that customers love.
Please keep in mind:
- If your proceeds surpass the 1 million USD threshold in 2021, the standard commission rate will apply for the rest of the year.
- If you initiate an app transfer after December 31, 2020, or accept a transfer of an app that was initiated after December 31, 2020, you will no longer be eligible to participate in the program.
For details, see the Paid Applications Agreement in App Store Connect. If you have any questions, contact us.
Apple Developer Relations
The company had opened up enrollments to the program earlier this month. Developers need the following to enroll:
- Be an account holder in Apple Developer Program
- Review and accept the latest Paid Apps agreement
- List all Associated Developer Accounts
- Make less than 1 million USD in 2020 for all their apps
Once developers cross the 1 million USD threshold, the standard 30% commission rate will apply to them for the rest of the year. However, if their revenue falls below 1 million USD again in the future, they can apply for the 15% commission rate again for the following year.