Apple to reduce 15% of the App store commission for eligible developers

Apple is always known for bringing up crazy but innovative ideas for its platforms. Recently the company has launched a new service for App developers that has their apps on App Store.  Its new small business program will allow app developers to receive 15% more from App Store sales.

“The vast majority of developers on the App Store who sell digital goods and services are eligible,” stated the company. The developers need to qualify for the benefit by simply completing the company’s enrollment form available online.

According to sources, the eligible developers making under $1 million per year in App Store sales and in-app purchase revenue will be eligible for the reduced commission rate of 15% for the following year. As we already know, the company takes 30% of all App Store revenue on digital items as per its longstanding policy.

Apple’s notes for the scheme is given below:

• 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 deadline for enrollment is December 18th, 2020, at 10 AM PT / 1 PM ET. The adjustment will take place starting from January 1st, 2021. According to the FAQ’s, if a developer applies after the deadline, they must wait until 15 days after they are approved to see the reduced commission rates. So if you are a new developer and have your app running life, then, by all means, hurry up and apply for the new policy change.

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