Apple starts enrolling all the eligible developers in the App Store Small Business Program. The program allows developers to get their fee reduced from 30 percent to 15 percent for earning less than $1 million per calendar year from the App Store.
Apple had announced its plan about the Small Business Program back in November and opened to Developers for sign-up beginning December 3. Now, Apple has finally started notifying developers who are selected for the program in the first wave.
Apple emailed qualifying developers with the confirmation and warning not to attempt transferring apps between qualifying and non-qualifying developer accounts.
The developers making less than $1 million annually in post-commission earnings through the App Store in 2020 are eligible for the program in 2021. If they exceed their earning from $1 million in July of 2021, then they will become ineligible for the program through the next calendar year.
Here’s what Apple has outlined as the basics for the program:
- 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.
The program was well-received by many developers, while some larger developers backlashing the move. Moreover, Apple says that the program will be available to the vast majority of developers and expects it to generate more new jobs and support small businesses.