Apple and Google to decrease their fees from 30% to 15% for the first $1M (USD) in revenue
What you should know about Apple’s App Store Small Business Program and Google’s plan for 2021 and how it can change your business.
At December Labs, we build user-centric, state-of-the-art mobile apps for up-and-coming and established startups and growth-stage companies. It is our mission to go beyond building the product and share our knowledge, advise on the latest trends and technologies and discuss opportunities for their business models. When Apple announced their Small Business Program in late 2020, we encouraged any eligible companies in our network to enroll. With the recent Google announcement, we decided to share an updated overview of what everyone should know up to this date.
Learn all the facts:
- What Apple calls it: App Store Small Business Program
- Launch date: December 3, 2020
- Who is this for: Existing developers who earned less than $1 million per year from the App Store for all their apps combined, as well as developers new to the App Store. Keep in mind: Developers must identify any Associated Developer Accounts to determine proceeds eligibility.
- What happens if I surpass the 1 million USD threshold: The service fee goes back to the standard commission for future sales.
- What happens if I currently am not applicable but my proceeds fall below the 1 million USD threshold in a future calendar year: You can re-qualify for the 15% commission the year after.
- Is this automatic or do I have to apply for this benefit: You have to enroll.
- What are the enrollment requirements:
- Be an Account Holder in the Apple Developer Program,
- Review and accept the latest Paid Apps agreement (Schedule 2 to the Apple Developer Program License Agreement) posted December 2020 in App Store Connect, and
- If applicable, list all of your Associated Developer Accounts.
- More info: https://developer.apple.com/app-store/small-business-program/
- What Google calls it: no name yet
- Launch date: July 1st 2021
- Who is this for: Every Play developer, regardless of size, on the first $1M of total revenue earned each year.
- What happens if I surpass the 1 million USD threshold: We assume that the service fee goes back to the standard commission for future sales. TBD by Google.
- Is this automatic or do I have to apply for this benefit: TBD by Google.
- More info: https://android-developers.googleblog.com/2021/03/boosting-dev-success.html?m=1
Last updated: March 18, 2021