Apple announced the App Store Small Business Program. It will launch on January 1, 2021. The new program reduces App Store commission to 15 percent for small businesses earning up to $1 million per year.
“Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world. We’re launching this program to help small business owners write the next chapter of creativity and prosperity on the App Store, and to build the kind of quality apps our customers love,” said Tim Cook, Apple’s CEO. “The App Store has been an engine of economic growth like none other, creating millions of new jobs and a pathway to entrepreneurship accessible to anyone with a great idea. Our new program carries that progress forward — helping developers fund their small businesses, take risks on new ideas, expand their teams, and continue to make apps that enrich people’s lives.”
Apple says the comprehensive details about the program will be released in early December. It has revealed the essentials of the program’s participation criteria.
- Existing developers who made up to $1 million in 2020 for all of 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 threshold, the standard commission rate will apply for the remainder of the year.
- If a developer’s business falls below the $1 million threshold in a future calendar year, they can requalify for the 15 percent commission the year after.
According to MacRumors, “The fee cut won’t benefit some of the developers that have been the most vocal about Apple’s commission rates, such as Epic Games, but it will relieve some of the pressure on the small business owners that need the most help.”