Apple opens up its App Store small business program

Apple sees its time to cut commissions. 

Apple has opened up enrolment for developers to join its recently announced App Store Small Business Program, which halves the commission rate it charges the vast majority of developers for App Store sales.

What Apple says

In a note shared with developers the company states:

“Enrollment is now open for the new App Store Small Business Program, designed to accelerate innovation and help propel your small business forward. Featuring a reduced commission rate of 15% on paid apps and in-app purchases, this program helps you invest more resources into your business so you can continue building great apps. The vast majority of developers on the App Store who sell digital goods and services are eligible — simply complete a short enrollment form.”

What’s the story

Announcing the scheme in November 2020, Apple CEO Tim Cook said:

“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.”

How it works

• Existing developers who made up to $1 million in 2020 for all of their apps, as well as developers new to the App Store, can qualify for the program and the reduced commission.
• If a participating developer surpasses the $1 million threshold, the standard commission rate will apply for the remainder of the year.
• If a developer’s business falls below the $1 million threshold in a future calendar year, they can re-qualify for the 15 per cent commission the year after.

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