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App Store Reduces Commission Program for Small Businesses and Indie Developers, Registration Now Open

On December 3, Apple officially released the news that the plan to reduce the commission draw for small businesses and independent developers has been opened for registration, and the commission draw for eligible apps that earn revenue through paid downloads and in-app purchases will be reduced to 15 percent.

Table of Content

Previously, on November 18, Apple had announced a reduced commission draw for small businesses and independent developers on the App Store, when the App Store commission fee will be reduced to 15 percent, with specific conditions to be announced in early December. Yesterday, Apple has announced the application requirements and process as expected.

Developers who meet the following conditions can apply for a reduced commission

Developers whose products are initially listed in the App Store, or developers and their associated developer accounts, must not have gross revenue in 2020 in excess of $1 million (net of Apple commissions, certain taxes and adjusted sales) and have no more than $1 million in revenue in the current year.

Developers with reduced commission eligible revenue in excess of the $1 million amount will be charged the standard commission rate for the remainder of that year; developers with revenue in excess of $1 million in a future year will not be eligible to participate in the reduced commission program in the following year.

Developers whose business revenue falls below $1,000,000 in a future year may re-qualify for the 15% commission in the following year.

Developers must list all affiliate accounts in order to apply for reduced commission eligibility

Application Process

To apply, you only need to fill out a short application form, which consists of 3 main sections.

I. Fill out the Apple Developer Program account holder

II. Review (and accept) the paid application agreement

List all associated developer accounts

Caution

It is important for developers to note that users who enroll before 10:00 a.m. PST on December 18, 2020, will receive program benefits until January 1, 2021; users who enroll after that date will receive program benefits 15 days after the end of the accounting calendar month in which enrollment was approved.

Apple Accounting Calendar

In addition, applications participating in the reduced draw commission program will not be allowed to transfer applications during the participation period. If an application transfer is initiated after December 31, 2020, it will lose its eligibility to participate in the program, and developers who need to transfer their applications need to make preparations in advance.

Conclusion

The reduced commission program for small businesses and independent developers is good for developers, and the application process is not cumbersome at the moment.