TORONTO — Apple today announced a new developer program which reduces the commission qualified small businesses have to pay to sell their digital goods and services on the App Store, including paid apps and in-app purchases.
Apple’s new App Store Small Business Program is set to launch on January 1, 2021. App developers can qualify for the program and a reduced, 15% commission only if they earned up to $1 million in proceeds during the previous calendar year, says Apple’s press release announcing the new program.
More details will be released by Apple in early December, but the basic details of the program’s participation criteria are as follows:
- 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 of 30% 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 requalify for the 15% commission the year after.
The App Store’s standard commission rate of 30% 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, says the press release.
“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, in the press release.
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