Not Your Average Store
The Apple App Store, which launched in 2008, is the world’s most vibrant app marketplace, currently offering 1.8 million apps and visited by half a billion people each week. It helps creators, dreamers, and learners of all ages and backgrounds connect with the tools and information they need to build a brighter future and a better world.
Developers of all sizes have built successful businesses while benefitting from the App Store’s global reach encompassing users of the more than 1.5 billion Apple devices around the world in 175 countries and over 40 languages. In 2019 alone, the App Store ecosystem facilitated $519 billion in commerce worldwide — with over 85 percent of that total accruing solely to third-party developers and businesses of all sizes. The new App Store Small Business Program will build on that progress to generate even more digital commerce and app innovations, support new jobs, and help small and independent developers continue to bring great software to Apple users.
A Big Win for Small Businesses
Until recently, access for creators and developers to this distribution service has come with a hefty price tag. Developers pay an annual fee to host apps in the App Store, and have been charged roughly 30% commission on revenues generated from in-app purchases. No small fee for small businesses.
Apple recently announced a 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.
“The App Store has been an engine of economic growth like none other, creating millions of new jobs and a pathway to entrepreneurship accessible to anyone with a great idea. Our new program carries that progress forward — helping developers fund their small businesses, take risks on new ideas, expand their teams, and continue to make apps that enrich people’s lives.” – Tim Cook, Apple’s CEO.
The program’s participation criteria are easy and streamlined:
- 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.
Monetising content with Locatify Apps
Locatify customers who provide tours and games via their own branded apps, can monetise app content using in-app purchases for both Android (Play Store) and iOS (App Store) devices. This requires customers to have their own App Store and Play Store developer accounts, and the price for tours and games can be set in the Creator CMS.
Contact Sales to discuss monetising your app content.