Developers can now sign up for Apple’s reduced 15 percent App Store cut
Apple has opened enrollment in its new small business program that will allow eligible app developers to receive 15 percent more from App Store sales, the company announced on Thursday. Apple says “the vast majority of developers on the App Store who sell digital goods and services are eligible” and all developers need to do to qualify is complete the company’s enrollment form available online.
Apple announced the new program last month, marking a significant change in how the App Store is structured. Under the new terms of the program, eligible developers making under $1 million per year in App Store sales and in-app purchase revenue are eligible for the reduced commission rate of 15 percent for the following year. Apple typically takes 30 percent of all App Store revenue on digital items as per its longstanding policy.
Although Apple has never released specific figures regarding how much developers earn per year or how much the App Store grosses, analysts estimate the App Store is responsible for more than $50 billion in sales in 2019, while analytics firm Sensor Tower estimates about 98 percent of developers are responsible for just 5 percent of that amount and would qualify for the new program.
Here, in Apple’s words, are the basics as outlined by its new FAQ:
- 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 has set a deadline of December 18th, 2020 at 10AM PT / 1PM ET for submitting enrollment, with a January 1st, 2021 start date for when the proceeds adjustment takes effect. The FAQ states that if a developer applies after the deadline, they must wait until 15 days after they are approved to see the reduced commission rates, and approval may not happen until well into spring of next year. If you’re a new developer with no proceeds, you can submit enrollment to the program and see the reduced App Store rate immediately upon approval if your app is then live.
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