Apple's App Store Small Business Program: What It Is and How to Apply

The standard App Store commission:

• •30% for all developers (the default rate since the App Store launched)

With the Small Business Program:

• •15% for developers earning under $1 million in proceeds (your revenue after Apple's cut) per calendar year
• •Once you exceed $1M in a calendar year, the rate reverts to 30% for the remainder of that year
• •The rate resets to 15% on January 1 each year if you're under $1M again

The 15% rate applies to:

• •Paid app sales
• •In-App Purchases (consumable, non-consumable, and subscription)
• •Subscription revenue (note: subscriptions in their second year already get 15% under a separate program, but the Small Business Program makes it 15% from year one)

This program is significant for indie developers. If you earn $100,000/year, the program saves you $15,000-$20,000 annually compared to the 30% rate.

1. 1.Revenue threshold: your total proceeds (revenue after Apple's commission) must be under $1 million in the previous calendar year. 'Proceeds' means the amount you receive, not gross sales.

1. 2.Account in good standing: your Apple Developer account must be active and in good standing (no violations, no unpaid balances).

1. 3.All apps under one account: the $1M threshold applies to all apps under a single Apple Developer account. If you have multiple apps, their combined revenue counts.

1. 4.Related accounts: Apple counts revenue from related accounts (accounts owned by the same entity or with shared ownership) toward the $1M threshold. You can't split apps across multiple accounts to stay under the limit.

1. 5.No exclusivity requirement: participating in the Small Business Program doesn't prevent you from using other Apple programs or features.

Who doesn't qualify:

• •Developers earning $1M+ in proceeds in the previous calendar year
• •Accounts with violations or in poor standing
• •Accounts that are part of a larger entity earning over $1M collectively
• •Developers who choose not to opt in (it's opt-in, not automatic)

1. 1.Log in to App Store Connect (appstoreconnect.apple.com)
2. 2.Go to 'Business' → 'Account' → 'Small Business Program'
3. 3.Review the terms and conditions
4. 4.Confirm your eligibility (Apple shows your previous year's proceeds)
5. 5.Accept the agreement
6. 6.The 15% rate takes effect on January 1 of the following year (or immediately for new accounts)

Important notes:

• •You can opt in at any time during the year, but the 15% rate applies from January 1 forward
• •If you're a new developer with no previous revenue, you're automatically eligible
• •You must re-confirm eligibility annually
• •If you exceed $1M during the year, Apple notifies you and the rate changes to 30% for the remainder of that year
• •The rate resets to 15% on January 1 if you're under $1M again

There's no application fee, no review process, and no waiting period. It's a simple opt-in with immediate effect for eligible accounts.

Example 1: Indie developer earning $50,000/year

• •Without program (30%): you keep $35,000, Apple takes $15,000
• •With program (15%): you keep $42,500, Apple takes $7,500
• •Annual savings: $7,500

Example 2: Small team earning $500,000/year

• •Without program (30%): you keep $350,000, Apple takes $150,000
• •With program (15%): you keep $425,000, Apple takes $75,000
• •Annual savings: $75,000

Example 3: Growing app earning $900,000/year

• •With program (15%): you keep $765,000, Apple takes $135,000
• •If you cross $1M mid-year: the rate changes to 30% for the remainder of that year
• •The transition can create a 'cliff' where earning slightly more results in less net revenue

The $1M cliff:

• •If you earn exactly $1M in proceeds, you keep $850,000 (15% rate)
• •If you earn $1.1M, you keep $770,000 on the first $1M (15%) + $77,000 on the $100K over (30%) = $847,000
• •Earning $100K more results in $3,000 less net revenue due to the rate change
• •This 'cliff' is a known issue. Some developers limit their revenue near the threshold to stay in the program.

For most indie developers, the cliff is a good problem to have — it means you're earning over $1M/year. The program is overwhelmingly beneficial for developers under the threshold.

Standard subscription commission (without Small Business Program):

• •Year 1 of a subscription: 30% commission
• •Year 2+ of a subscription: 15% commission (Apple's standard subscription benefit)

With the Small Business Program:

• •Year 1 of a subscription: 15% commission (instead of 30%)
• •Year 2+ of a subscription: 15% commission (unchanged)

This means the Small Business Program primarily benefits first-year subscription revenue. For developers with many new subscribers, the savings are significant.

Example: a subscription app with $200,000/year in first-year subscription revenue

• •Without program: $60,000 commission (30%)
• •With program: $30,000 commission (15%)
• •Annual savings: $30,000

For apps with mostly long-term subscribers (year 2+), the savings are smaller because the rate was already 15%.

Reasons to opt in:

• •You keep more revenue (85% vs 70%)
• •There are no downsides for developers under $1M
• •It's free and takes 5 minutes to set up
• •It applies automatically to all your apps
• •You can always opt out later (though there's no reason to)

Reasons you might not opt in:

• •You earn over $1M/year (you don't qualify)
• •You're part of a larger entity that earns over $1M collectively
• •You have a philosophical objection to the program (rare)

There's no strategic reason for an eligible developer to avoid the Small Business Program. If you qualify, opt in immediately. The 15% rate applies to all revenue from January 1 forward.

Note: the program doesn't affect your App Store ranking, visibility, or access to features. It's purely a commission rate change.

• •New developers: automatically eligible. Opt in when you set up your account.
• •Developers near the $1M threshold: monitor your revenue monthly. If you're approaching $1M, plan for the rate change mid-year.
• •Multiple developer accounts: Apple counts related accounts together. You can't split apps across accounts to stay under $1M.
• •Account transfers: if you transfer an app to another account, the revenue counts toward both accounts' thresholds for that year.
• •Refunds: refunded purchases reduce your proceeds, which affects your threshold calculation.
• •Cross-platform revenue: only App Store revenue counts. Google Play revenue doesn't affect your Apple threshold (and vice versa).
• •Family Sharing: revenue from Family Sharing IAPs counts toward your threshold.
• •Ads (Apple Search Ads): ad spend is separate from app revenue and doesn't affect your Small Business Program eligibility.

If you're unsure about your eligibility, check App Store Connect → Business → Account. Apple shows your previous year's proceeds and your current eligibility status.