What Is The App Store Small Business Program?
The App Store Small Business Program is an initiative by Apple designed to support small developers by reducing the standard App Store commission rate. Eligible developers pay a 15% commission on paid apps and in-app purchases rather than the usual 30%, allowing them to reinvest more resources into their apps and business growth.
This program applies to both existing developers and those new to the App Store who earn up to USD 1 million in annual proceeds across all of their apps. It aims to accelerate innovation and help smaller developers bring high-quality apps to market.
Developers who exceed the USD 1 million threshold in a calendar year are moved to the standard 30% commission rate for the remainder of that year. If their revenue falls below the threshold in a future year, they may requalify for the reduced rate. To ensure eligibility, developers must disclose any Associated Developer Accounts, which include accounts they control or that control them.
How Does It Work?
To enrol, developers must be the Account Holder of an Apple Developer Program membership, accept the latest Paid Apps agreement in App Store Connect, and list all Associated Developer Accounts. Once approved, the reduced commission rate begins 15 days after the fiscal month ends.
Eligibility is calculated based on total annual proceeds, net of Apple’s commission, taxes, and adjustments, converted into US dollars. Associated accounts’ revenue is combined to determine whether the USD 1 million limit is met.
Why Is It Important?
By cutting the commission rate in half, Apple enables small developers to retain more earnings, which can be reinvested into improving their apps, expanding features, and growing their teams. This gives smaller businesses the ability to compete more effectively against larger studios while continuing to deliver high-quality apps that customers value.
How Does It Compare To Standard App Store Terms?
Under standard terms, all developers pay a 30% commission rate on paid apps and in-app purchases. The Small Business Program lowers this rate to 15% but only for those under the USD 1 million annual proceeds cap. Once that cap is exceeded, the developer automatically returns to the 30% rate.
In regions under alternative EU terms, Apple also offers an additional reduction to 10% commission on subscriptions after their first year, when combined with the Small Business Program.
Both Serve Their Purpose
The Small Business Program provides targeted support for independent developers and smaller studios who rely on the App Store as their primary distribution channel. It helps level the playing field by allowing these businesses to keep more of their revenue while still benefitting from Apple’s app ecosystem, payment infrastructure, and global reach. Larger developers continue under the standard model, while smaller developers gain room to grow and innovate without being burdened by the full commission rate.
