Apple cuts App Store commissions in half. And what happens if I make $1,000,001?


Apple today announced an industry-leading new developer program to accelerate innovation and help small businesses and independent developers propel their businesses forward with the next generation of groundbreaking apps on the App Store. The new App Store Small Business Program will benefit the vast majority of developers who sell digital goods and services on the store, providing them with a reduced commission on paid apps and in-app purchases. Developers can qualify for the program and a reduced, 15 percent commission if they earned up to $1 million in proceeds during the previous calendar year.

This is major news for indie developers. Game changing.

The way I read it, if Apple pays you up to $999,999, across all your apps, in a single year, you pay 15% commission instead of the current 30%. You’ve just moved from 70% to 85% take (21% increase). That’s huge.

Specifics on the program, which launches January 1st:

  • 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.

So what happens if you hit the magic $1 million threshold?

My understanding is that you’ll pay 15% on the first $1 million, then 30% on everything above that first $1 million.

Remember, this is across all apps, so if you have 10 apps, add all the revenue together to figure out where you are, commission-wise.

Great move on Apple’s part. Long time coming.