Apple has officially opened developer enrollment for its App Store Small Business Program. Under the new program, developers which earn less than $1 million annually only pay 15% commission on in-app purchases via the company’s digital marketplace. The $1million is calculated after deducting Apple’s commission from the developer’s earnings.
The new App Store Small Business Program is designed to accelerate innovation and help propel your small business 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 you can invest more resources into your business to continue building quality apps that customers love.
This year, Apple has faced strong criticism for its 30% commission rate by developers and scrutiny by regulators from around the world. Although it seems hypocritical when big developers and companies like Epic Games and Facebook object to Apple’s 30% share cut, it does seem unfair that smaller developers are charged the same rate as the big ones, especially during the prevailing global health crisis. Therefore, to subdue criticism and to support smaller developers, Apple launched the new 15% commission rate for smaller developers.
Apple Opens Enrollment for App Store Small Business program
Developers can now submit their enrollments on idmsa.apple.com by December 18, 2020, to receive program benefits by January 1, 2021. As posted by the company, interested developers will need to complete the following steps before enrolling:
- Be an Account Holder in the Apple Developer Program,
- Review and accept the latest Paid Apps agreement (Schedule 2 to the Apple Developer Program License Agreement) posted December 2020 in App Store Connect, and
- If applicable, list all of your Associated Developer Accounts.
The eligibility criteria states that all existing and new developers registered in Apple Developers Program who earned up to $1million in 2020 for all their apps qualify for the new App Store Small Business Program and can apply for a reduced 15% commission. It is also detailed that,
- 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.
A recent report claims that 98% of developers will qualify for the new App Store Small Business Program under the given criteria and believes that “this move is truly a win-win for Apple. In a single swing, Apple managed to make almost every developer in the ecosystem happy, potentially fend off a set of anti-trust lawsuits, and give developers more incentive to stay with Apple.”