Apple Offers 15 Pct Commission On Its New App Store Small Business Program

Apple has opened enrollment for a new App Store Small Business Program, letting developers qualify for a commission rate of 15 percent instead of the usual 30 percent if they earn up to $1 million in a year, according to a report from 9to5Mac.

The $1 million number is based on a post-commission basis, the report stated, letting developers join only if their revenues reach $1 million after Apple takes its cut.

Apple, in an explanation, said the program “helps you invest more resources into your business so you can continue building great apps,” per the report. “The vast majority of developers on the App Store who sell digital goods and services are eligible — simply complete a short enrollment form.”

The program will begin to be available for any company making less than $1 million this year. Companies become ineligible if they exceed that amount by July 2021 and are ineligible for the next calendar year. However, developers whose companies later fall below the $1 million threshold are able to reapply the next calendar year, according to the report.

The 9to5Mac report stated developers have to identify any Associated Developer Accounts in order to determine proceeds eligibility as the $1 million number is determined by the total number from every associated account, and if the number exceeds that amount, the business can’t apply.

Apple rolled out the idea for this program last month, PYMNTS reported. The reduced rate can apply to any in-app purchases and paid app revenue. CEO Tim Cook said the idea for the program is to keep being an engine for growth for businesses, including small ones, helping developers fund those businesses and take risks.

PYMNTS also reported that the commission cut shows Apple’s worries about keeping smaller firms on its App Store while still giving high costs to bigger companies and maintaining its other advantages. All of this comes amid numerous investigations into antitrust concerns regarding Apple in recent months.