Apple Inc. has begun to slash its commission in half as part of the Apple App Store Small Business Program. Certain developers who list their apps for Apple devices such as iPhone, iPad and MacBook computers on the Apple App Store stand to earn a lot more from sales of their software.
Apple appears to have started its “Apple App Store Small Business Program” earlier than expected. The company is now taking smaller commissions from some of the participants.
What is Apple’s Small Business Program?
Apple started a rather benevolent program in November this year. The company announced that certain qualifying developers need to pay only half the commission.
Apple has been charging a 30 percent commission from every sale of software. In other words, whenever iOS and macOS users bought any app from the Apple App Store, Apple Inc. earned a 30 percent commission of the sale price.
— Tamir Huberman (@hubermantamir) December 25, 2020
Several from the developer community have often complained about Apple’s 30 percent commission. Many developers and experts insist that 30 percent is quite steep, and it significantly erodes the earning potential from apps listed on Apple App Store.
Looks like the reduced Small Business App Store fee is now in effect. This is for our Mac app, ImageFramer. Time in UTC. 42.5/50 = 0.85. @mjtsai @OliverJHaslam @9to5mac @MacObserver pic.twitter.com/7LkaAQMhAR
— Jacob Gorban (@jacobgorban) December 24, 2020
Possibly listening to the criticism, Apple began accepting enrollees for its Apple App Store Small Business Program in early December. The company was to inaugurate the program on January 01, 2021.
Reports, however, indicate that Apple has decided to get things started early. It is important to note that only a few developers have received confirmation about Apple’s commission halving.
How can developers qualify for Apple App Store Small Business Program and start earning more from Apple App Store sales?
As mentioned above, Apple started accepting applications from developers for its Small Business Program back in November 2020. The company should continue to accept and evaluate new applications.
The foremost criteria for qualifying for the Apple App Store Small Business Program is revenue. This means earnings generated from the apps sold on the Apple App Store. Essentially, the program is meant for developers who make less than $1 million per year from App Store sales.
Thanks @Apple :) “Apple announces App Store Small Business Program. reduces App Store commission to 15 percent for small businesses earning up to $1 million per year #indiedev #gamedev #IndieGameDev #apple #appstore https://t.co/eWcWPhw1s9
— Fragment Games (@FragmentGamesHQ) November 18, 2020
The million-dollar sales figure is applicable to both in-app purchases and first-year subscription sales. It is, however, interesting to note that Apple’s 30 percent commission appears when a developer surpasses the million-dollar threshold.
Apple’s 30 percent commission has caused a few notable developers to attempt different tactics to avoid the same. One of the most notable, Epic Games, had a major spat earlier this year with Apple. Interestingly, several developers sided with Epic Games, and the legal battle that followed might have persuaded Apple to initiate the program.
According to several reports, Apple has received a tremendous response to the Apple App Store Small Business Program. While the move appears to be quite benevolent, the company has strongly defended its 30 percent commission in the past. Meanwhile, a few developers have claimed that Apple was prompted to change its commission policy to ease off looming antitrust scrutiny.