How to Enroll in the App Store Small Business Program
Getting your Apple tax break
David BarnardDecember 17, 2020
Apple recently sent shockwaves through the App Store developer community by unveiling the App Store Small Business Program — which reduces the App Store commission for small app developers from 30% to 15%.
In general, you’re eligible for the reduced rate if your app makes less than $1M in revenue per year. As soon as your annual revenue exceeds $1M, you’re no longer eligible for the program. (For more details on how the program works, check out Episode 4 of the Sub Club podcast.)
This may sound too good to be true — and Apple probably has a couple of ulterior motives —, but the bottom line is this is a great perk for small developers. A lower App Store commission means more takehome to invest in and grow your app and pay your bills.
And the best part? The vast majority of RevenueCat customers qualify for the program.
Determining Your Eligibility
To find out if you’re eligible for the App Store Small Business Program, take a look at the Revenue chart in your RevenueCat dashboard.
Select year in the top right to view your app’s annual revenue. The Revenue Data table at the bottom of the screen shows your gross revenue, proceeds, and takehome percentage. If your total proceeds for 2019 total less than $1M, you should be eligible for the program!
Keep in mind that the $1M cap applies to all of your Associated Developer Accounts. If you own more than 50% of or have decision-making power for more than one account (or if someone else has the same for your account), you’ll need to list each one and certify that to the best of your knowledge, all of your Associated Developer Accounts combined made less than $1M in the 12 fiscal months of the 2020 calendar year.
How to Apply
Heads-up: If you submit your enrollment by December 18th, 2020 (10 a.m. PST), the 15% commission rate will take effect January 1, 2021.
Once you’ve determined you’re eligible for the App Store Small Business Program, head over to the Apple Developer website to apply.
In order to apply, you’ll need to:
- Be an Account Holder in the Apple Developer Program.
- Read and accept the latest Paid Apps agreement (posted December 2020) in App Store Connect.
- List all your Associated Developer Accounts.
Read the terms of the program, then click Enroll. The form will request a sign-in to your Apple Developer account and will automatically populate your name, email, and Team ID.
After you submit the form, you’ll receive a confirmation email from Apple that says your application is being reviewed.
Updating Your RevenueCat Account
Once your application is approved, you’ll need to update your RevenueCat settings to reflect your membership in the App Store Small Business Program.
Open App Settings in your RevenueCat dashboard. Go to App Store Configuration, and enter the date your membership goes into effect.
We’re pretty excited about this latest App Store development! Our mission at RevenueCat is to help developers make more money, and we know a little extra cash in the bank goes a long way for indie developers. The reduced App Store commission will give many RevenueCat customers more money to spend on things like marketing, tools, contractors, and other things that will help build better app businesses.
For more information on how to get set up with the App Store Small Business Program, head over to the RevenueCat docs.