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Apple Slices Commission Rate to 15 Percent for Smaller Developers

November 18, 2020

Apple is making a big change to how much commission in takes from app developers. The company just announced a new App Store Small Business Program.

Developers who make up to $1 million on the App Store can apply to the program. It will cut the amount of commission Apple takes from 30 percent to 15 percent.

Any developer earning more than $1 million per year will still be subject to the 30 percent commission.

More details will be released next month. Apple did touch on the basics:

  • Existing developers who made up to $1 million in 2020 for all of 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 threshold, the standard commission rate will apply for the remainder of the year.
  • If a developer’s business falls below the $1 million threshold in a future calendar year, they can requalify for the 15 percent commission the year after.

The program will officially launch on Jan. 1, 2021.

You can read more from Apple here.