The commission rate for developers with an income of under $ 1 million is only 15 percent.
JAKARTA – Apple announced a reduction in the App Store commission rate. This commission reduction is part of a new program for small businesses.
This new program allows developers who earn less than US $ 1 million per year to earn commission discounts App Store by 15 percent.
This amount is half the Apple standard. Typically, Apple charges a commission of 30 percent of all paid app revenue and in-app purchases.
The company says “most” iOS app developers should be able to access the program. However, Apple declined to say what percentage of the more than 28 million registered app makers would qualify. Apple has also refused to specify how much its App Store revenue will be affected by the commission reduction.
Reporting from The VergeThursday (19/11), according to analytics firm Sensor Tower, an estimated 98 percent of developers will qualify for a 15 percent cut. However, the developer only made five percent of the App Store’s total revenue last year.
The new small business program will take effect from January 1, 2021. Developers will be required to register for the program. Apple said it will release more information about the process and other eligibility requirements and deadlines in December.
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Apple didn’t go into detail about why it chose not to automatically enroll developers in the program. Perhaps, requiring developers to register could reduce the potential for fraud or other abuse that could arise if Apple automatically enrolled everyone below the threshold.
Apple did lay out some of the program rules today. The company said it would see developer results in 2020 to determine eligibility from January. New developers can also qualify right away.
Applications that exceed US $ 1 million in revenue are automatically removed from this program. They will be subject to the standard 30 percent deduction.
If developer revenues fall below $ 1 million in the coming calendar year, Apple says they can again qualify for the program and reduced commission rates.
Apple CEO Tim Cook described the move as a way to support small businesses. According to him, small business is the backbone of the global economy of communities around the world.
“The App Store has become an engine of economic growth like no other, creating millions of new jobs and a pathway to entrepreneurship that anyone with a great idea can access. Our new program brings that advancement forward, helping developers fund their small businesses, take risks on new ideas, expand their teams and continue to create applications that enrich people’s lives, ”said Cook.
Source: Republic
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