It means a 50% reduction in commission for 98% of App Store developers.
What you need to know
- Apple is now confirming to developers their enrollment in the App Store Small Business program.
- Developers who earn less than $1 million per calendar year can apply for commission rates of just 15% as opposed to the usual 30%.
Apple has reportedly started sending confirmation emails to developers who have joined its App Store Small Business Program.
Eligible developers are now beginning to receive their App Store Small Business Program confirmation emails from Apple after submitting their applications earlier in the month.
Apple announced the move on November 18 stating:
Apple today announced an industry-leading new developer program to accelerate innovation and help small businesses and independent developers propel their businesses forward with the next generation of groundbreaking apps on the App Store. The new App Store Small Business Program will benefit the vast majority of developers who sell digital goods and services on the store, providing them with a reduced commission on paid apps and in-app purchases. Developers can qualify for the program and a reduced, 15 percent commission if they earned up to $1 million in proceeds during the previous calendar year.
Apple opened sign ups for the scheme on December 3. Despite estimates that the program could benefit 98% of developers it has been met with strong criticism from big developers like Spotify and Epic Games, who claim the move was simply designed to divide App Store developers by making the marketplace fairer for the vast majority of its users.
As 9to5Mac reports, the full text notes:
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.
The email does however carry a warning noting that if developer revenue exceeds $1 million in 2021, then the standard commission rate will be applied for the remainder of the year.