14 DAY TRIAL // Apple has recently announced that a new so-called App Store Small Business Program would come with an important cut in App Store fees for developers, with the commission reduced to 15 percent if they make less than $1 million with their apps.
The new program will launch on January 1, and Apple says that only developers that didn’t earn more than $1 million in 2020 can become a part of it.
If this threshold is exceeded in 2021, the 30 percent commission is automatically activated for the rest of the year, but the company guarantees that past sales wouldn’t be affected.
“The App Store’s standard commission rate of 30 percent remains in place for apps selling digital goods and services and making more than $1 million in proceeds, defined as a developer’s post-commission earnings. Earlier this year, an independent study by the Analysis Group found that Apple’s commission structure is in the mainstream for app distribution and gaming platforms, Apple says.
Developers whose earnings drop below $1 million during a year can also apply for the new program the next year, Apple explains.
Specifically aimed at small devs
Apple CEO Tim Cook says the purpose of the program is to help small developers grow bigger.
“Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world. We’re launching this program to help small business owners write the next chapter of creativity and prosperity on the App Store, and to build the kind of quality apps our customers love,” said Tim Cook, Apple’s CEO.
“The App Store has been an engine of economic growth like none other, creating millions of new jobs and a pathway to entrepreneurship accessible to anyone with a great idea. Our new program carries that progress forward — helping developers fund their small businesses, take risks on new ideas, expand their teams, and continue to make apps that enrich people’s lives.”
More details on the program are projected to be shared next month.