Apple has officially opened enrollment for the new App Store Small Business Program. This program allows developers to qualify for a commission rate of 15% if they earn up to $1 million.
Apple says that existing developers who earn up to $1 million in a calendar year are eligible for this new App Store Small Business Program. The $1 million number is based on a post-commission basis. This means developers are eligible for the program until their proceeds, after Apple takes its cut, exceed $1 million.
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.
This means that developers who make less than $1 million in post-commission earnings through the App Store in 2020 are eligible for the program in 2021.Then, if post-commission earnings exceed $1 million in July of 2021, they become ineligible for the program effective of that date, and the standard commission rate applies for the remainder of the year. They are also ineligible for the program for the next calendar year.
But with all of that having been said, if a developer’s business falls below the $1 million threshold in a future calendar year, they can requalify for the program the year after.
Apple explains the basics:
- 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.
Apple notes that developers must list associated accounts because the $1 million figure is determined by the collective proceeds of each account:
The App Store Small Business Program is intended for small businesses and individual developers. If your organization controls other Apple Developer Program accounts or is controlled by another account that sells digital goods and services on the App Store, the collective proceeds from these related organizations must not exceed the 1 million USD threshold in order to qualify for the program.
Apple says that you must submit your enrollment by December 18, 2020, at 10 a.m. PST to receive program benefits by January 1, 2021.
You can sign up on the Apple developer website right here and learn more in a detailed frequently asked questions section here.