Small businesses and independent developers often struggle to find the resources necessary to scale their apps. Recognizing this challenge, Apple introduced the Apple Small Business Program on January 1st, 2021, designed to support smaller developers by significantly reducing the commission fees they pay on paid apps and in-app purchases.
This initiative aims to foster innovation, allowing developers to reinvest their earnings into their apps and propel their businesses forward. In this article, we’ll explore the benefits of the Apple Small Business Program, how to enroll, and how Qonversion can help you maximize the program’s advantages.
Understanding the Apple Small Business Program
The Apple Small Business Program changes the game for app developers earning up to $1 million in proceeds annually. The most significant benefit of this program is the reduced commission rate:
instead of the standard 30%, eligible developers pay only 15% on paid apps and in-app purchases.
The reduced 15% commission rate allows developers to retain a larger share of their revenue, which can be crucial for small businesses operating on tight margins. This lower commission rate provides developers with greater financial flexibility to invest in app development, marketing, and user acquisition, ultimately leading to better products and potentially higher revenues.
By the way, Google also offers a Google Play Small Business Program, which similarly reduces the commission rate to 15% for developers earning under $1 million annually.
Who is Eligable for App Store Small Business Program?
Developers who earned up to $1 million in proceeds in the previous calendar year are eligible for the program. New developers to the App Store can also take advantage of this reduced rate. If a developer exceeds the $1 million threshold in the current year, the standard 30% commission rate will apply to future sales. However, if their earnings fall below $1 million in a subsequent year, they can re-qualify for the 15% commission rate in the following year, ensuring ongoing support for fluctuating business conditions.
How to Enroll in the Apple Small Business Program?
Enrolling in the Apple Small Business Program is straightforward, but developers must ensure they meet all the criteria to take advantage of the benefits. Here’s a step-by-step guide on how to enroll:
1. Verify Eligibility
Ensure that your total App Store proceeds in the previous calendar year did not exceed $1 million. This includes proceeds from all your Associated Developer Accounts.
2. Apple Developer Program Account
You must be an Account Holder in the Apple Developer Program. If you haven’t already enrolled, you’ll need to do so before applying for the Small Business Program.
3. Accept the Paid Apps Agreement
Review and accept the latest Paid Apps agreement (Schedule 2 to the Apple Developer Program License Agreement) in App Store Connect.
4. List Associated Developer Accounts
Identify any Associated Developer Accounts. These are accounts that you own or control or that own or control your account. Listing these accounts is crucial, as eligibility is determined based on the combined proceeds of all associated accounts.
5. Enrollment Approval
After completing the above steps, your enrollment will be reviewed by Apple. Once approved, the reduced commission rate will take effect 15 days after the end of the fiscal calendar month in which your enrollment is approved.We've shown you how to enroll to App Store's Small Business program with screenshots and everything, use it!
Leveraging Qonversion Tools with the Apple Small Business Program
The benefits of the Apple Small Business Program can be further amplified when paired with the right tools. If you're an iOS developer aiming to scale, Apple Search Ads integration is one such tool that can help developers maximize their app’s visibility and profitability within the App Store ecosystem. We will get your Apple Search Ads data directly into your dashboard, providing detailed analytics, keyword analysis, and insights into Return on Ad Spend (ROAS). At Qonversion, we’re committed to deliver the information and tools for app developers to succeed. Have questions? Reach out to us, and we’d be happy to help you get started!
Alice
Qonversion Team
Alice shares insights on mobile app monetization and subscription strategies.
