Enrollment for reduced 15% Apple App Store commission begins

Posted:
in General Discussion edited December 2020
The App Store Small Business Program allows developers who earn less than $1 million per year to pay only 15% of sales to Apple, and enrollment has begun.

App Store Small Business Program enrollment begins
App Store Small Business Program enrollment begins


Apple has charged developers 30% of revenue on app sales and in-app purchases to operate on the App Store, only changing the percentage for subscription apps that kept users subscribed for more than a year. Now Apple has changed its guidelines to enable developers who are paid by Apple less than $1 million per year to pay only 15% of the revenue.

Developers must meet these requirements to be a part of the App Store Small Business Program:
  • Existing developers who made up to 1 million USD in proceeds in 2020 for all 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 USD threshold, the standard commission rate will apply for the remainder of the year.
  • If a developer's proceeds fall below the 1 million USD threshold in a future calendar year, they can re-qualify for the 15% commission the year after.
  • Developers must identify any Associated Developer Accounts to determine proceeds eligibility.
The percentage change impacts at least 98% of all developers on the App Store.

This move comes after pressure from major developers and government inquiries questioning Apple's monopoly position. The move proved popular among many developers, though some large developers do not believe the change to be enough to satisfy their issues.

Apple highlights the steps to enroll:
  • Be an account holder in the Apple Developer Program
  • Review and accept the latest Paid Apps agreement
  • If applicable, list all of your associated developer accounts
Developers who want to pay the reduced 15% in revenue can sign up as of Thursday to have the reduction take place on January 1, 2021. In order to qualify for benefits by January 1, developers will need to complete enrollment by December 18 at 10AM PST.

Comments

  • Reply 1 of 8
    mobirdmobird Posts: 752member
    Epic will probably attempt to sign up. :*
    watto_cobra
  • Reply 2 of 8
    all other app stores taking 30% of app sales are now shitting in their pants. anything apple does affects all. 
    watto_cobra
  • Reply 3 of 8
    chadbagchadbag Posts: 1,999member
    I am wondering why they just don't auto enroll every developer account.   They have all the data.  
    muthuk_vanalingam
  • Reply 4 of 8
    crowleycrowley Posts: 10,453member
    chadbag said:
    I am wondering why they just don't auto enroll every developer account.   They have all the data.  

     Me too.  It seems like this should apply to all developers, without any need to enroll, especially since:

    If a participating developer surpasses the 1 million USD threshold, the standard commission rate will apply for the remainder of the year.
  • Reply 5 of 8
    flydogflydog Posts: 1,123member
    litoloop said:
    all other app stores taking 30% of app sales are now shitting in their pants. anything apple does affects all. 
    Developers aren't picking between Apple's App Store and Google Play based on the fees.   Do you seriously believe there is some developer who spent thousands of hours developing just Android apps and who is all of sudden going to drop Android and change to an iOS-only busines model?
    edited December 2020
  • Reply 6 of 8
    flydogflydog Posts: 1,123member

    chadbag said:
    I am wondering why they just don't auto enroll every developer account.   They have all the data.  
    Because you have to disclose every developer account that you own, and all accounts are taken into consideration.  Apple has no idea who ultimately owns and controls a developer account since they could be set up under different legal entities.  For example, Epic controls several accounts.  
    watto_cobracrowley
  • Reply 7 of 8
    crowleycrowley Posts: 10,453member
    flydog said:

    chadbag said:
    I am wondering why they just don't auto enroll every developer account.   They have all the data.  
    Because you have to disclose every developer account that you own, and all accounts are taken into consideration.  Apple has no idea who ultimately owns and controls a developer account since they could be set up under different legal entities.  For example, Epic controls several accounts.  
    I guess so, though I don't really see a good reason why you'd have the 15% below a million reduction per developer rather than per app.
  • Reply 8 of 8
    FYI developers can still apply for the program. I just did. There really should be no deadline as any new developer should be able to apply. 
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