On month of November Apple announced the 'App Store Small Business Program', a special program for developers with certain features. The benefits of this program are succulent 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 your applications. A few days ago, Apple has begun to notify the arrival of the program to the developers who signed up and will begin its reduction of commissions this 2021.
The 'Apple Store Small Business Program' begins
This new program delves into that purpose, since it will help entrepreneurs finance their companies, take risks with new ideas, expand their teams and continue creating apps that improve people's lives.
To understand the meaning of this movement by Apple, it is necessary to know the operation of commissions in the App Store. When a developer publishes an app, 30% of all revenue that occurs within the application goes to Apple's coffers. However, in November Apple introduced a new program called 'App Store Small Business Program', which was trying to alleviate this commission for 'smaller' developers. The commission reduction program has some standards very simple:
- Developers already present in the App Store with revenues of 1 million dollars or less in 2020 for all their apps, as well as new developers, are eligible for the program and the reduced commission.
- If a participating developer exceeds the $ 1 million revenue threshold, the regular commission will apply for the remainder of the year.
- If a developer's business falls below the $ 1 million threshold during a calendar year, they will be eligible for the 15 percent commission the following year.
The deadline for issuing applications was the December 18 and the figures suggest that around the 98% of developers meet the program's criteria. However, not all of them will have applied to be part of it. In fact, Apple has begun to notify developers of its arrival to the program with the following message:
We are pleased to welcome you to the App Store Small Business Program. The commission rate on your apps and in-app purchases will be 15% starting January 1, 2021, so you can invest more resources in your business to continue creating quality apps that customers will love.