Apple first announced the program in mid-November.
Apple says that existing developers who earn up to $1 million in a calendar year are eligible for this new App Store Small Business Program. The $1 million number is based on post-commission basis. This means developers are eligible for the program until their proceeds, after Apple takes its cut, exceed $1 million.
Qualifying developers had to apply to join the program – it’s not automatic – with Apple setting a deadline of December 18 to take advantage of the reduced rate as of the starting date of January 1, 2021.
It was clear that almost all developers bar the big boys were likely to qualify, and a report from Appfigures confirmed that it would apply to 98% of developers.
Apple just made more than 98% of its developers 50% happier. Hot off of its fight with Fortnite maker Epic, Apple has announced a new program aimed at lowering the App Store fee for what Apple calls “Small Businesses.”
Appfigures says that pretty much “everyone is a ‘small business,’” and that under 2% earned more than $1 million in 2019.
I outlined at the time the three reasons that the program represented a huge and clever U-turn by the Cupertino company.
The Small Business Program confirmation email reminds developers of the $1M cap, and also warns them against attempts to game the system by transferring apps between qualifying and non-qualifying developer accounts.
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.
Best regards, Apple Developer Relations
FTC: We use income earning auto affiliate links. More.