Apple has officially opened enrolment for its new App Store Small Business Program to help individual developers and smaller firms earn a larger cut of the proceeds from the apps they create. The program offers a commission rate of 15% for all developers that earn less than $1 million a year once Apple has taken its portion of the profits.
“Enrollment is now open for the new App Store Small Business Program, designed to accelerate innovation and help propel your small business forward,” an Apple update reads. “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.”
In clarifying the eligibility criteria, Apple confirmed that developers who made less than $1 million in post-commission profits via the App Store in 2020 will be eligible for the Small Business Program in 2021. If a developer enrolls but then finds that their earnings exceed the $1 million threshold, they will be charged the standard commission rate for the rest of the year.
Looking out for the little guy
For small businesses to qualify for the program, they must list all their Associated Developer Accounts because the collective proceeds will determine the eligibility of the organization in question.
Developers and businesses may find that the program makes a significant difference to their overall earnings, as Apple’s standard commission fees (30%) are twice as much as those charged to members of the App Store Small Business Program. In order to receive the reduced charges by January 1 next year, developers must ensure that they are enrolled in the program by December 18.
Individual developers and small businesses make an invaluable contribution to the App Store and are responsible for the vast majority of applications found there. The new program will hopefully provide the extra support they need to continue delivering innovative digital solutions.