The commission rate for developers earning less than $ 1 million is only 15 percent.
REPUBLIKA.CO.ID, JAKARTA – Apple announced a reduction in the App Store commission rate. This commission cut is part of a new small business program.
This new program allows developers who earn less than $ 1 million a 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 on all paid app revenue and in-app purchases.
The company says “most” iOS app developers should have access to the program. However, Apple declined to say what percentage of the more than 28 million registered app makers would qualify. Apple also declined to reveal how much revenue from the App Store would be affected by the commission reduction.
Report from EdgeAccording to analysis firm Sensor Tower, an estimated 98 percent of developers will qualify for a 15 percent cut by Thursday (November 19). However, these developers only won five percent of total App Store sales last year.
The new small business program will take effect on January 1, 2021. Developers must register for the program. Apple announced that more information about the process and other approval requirements and deadlines will be released in December.
Apple didn’t go into detail about why developers weren’t automatically included in the program. Requiring developers to register potentially reduces the risk of fraud or other abuse that could occur if Apple automatically enrolls anyone below a threshold.
Apple today sets some program rules. The company said it would see developer results in 2020 to determine eligibility from January. New developers can also qualify immediately.
Applications with sales of more than $ 1 million will be automatically removed from the program. They are subject to a standard deduction of 30 percent.
If developer earnings fall below $ 1 million in the coming calendar year, Apple says they can again qualify for the program and lower commission rates.
Apple CEO Tim Cook described the move as a way to support small businesses. Small businesses are the backbone of global economies in communities around the world.
“The App Store has become an unbeatable engine of economic growth, creating millions of new jobs and a path to entrepreneurship that anyone with a great idea can access. Our new program drives that progress, helps developers fund their small businesses and take risks with new ideas, grow your team, and continue to build applications that enrich people’s lives, ”said Cook.
–
