What's Hot in Small Business – Chris Crum
Chris Crum writes for Small Business Resources about what's new for small business. Chris was a featured writer with the iEntry Network of B2B Publications where hundreds of publications linked to his articles including the Wall Street Journal, USA Today, LA Times and the New York Times.

Apple Kicks Off 2021 with App Store Small Business Program

Apple Kicks Off 2021 with App Store Small Business Program

App Store Small Business Program1

Image via Apple

If you’re looking for new ways to generate revenue and/or reach customers, you might want to consider an app. Tech giant Apple recently announced a new developer program that is launching at the beginning of 2021 and is aimed at accelerating innovation and helping small businesses create a new generation of apps for its popular App Store.

The App Store Small Business Program will charge reduced commissions to developers on paid apps and in-app purchases. Specifically, those who qualify will be charged a reduced commission charge of 15 percent from the standard 30 percent if they earn up to $1 million in proceeds during the previous calendar year.

The company has pitched the program as a way to help businesses who are struggling during the pandemic find new ways of making money digitally as business models pivot and new streams of revenue are sought. Apple has also touted the reduced commission charge as a way to free up resources that can be used to invest and grow businesses.

Getting in the App store means a chance at getting in front of more Apple iOS users, which means people using iPhones and iPads will be able to utilize these small businesses’ offerings.

According to a recently released report from Statista, iOS has the largest share of the smartphone operating systems’ market in the United States. As of May, it had claimed over half of the market.1

App Store Small Business Program2

Image via Statista

Apple CEO Tim Cook commented, “Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world. We’re launching this program to help small business owners write the next chapter of creativity and prosperity on the App Store, and to build the kind of quality apps our customers love."

“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," he added. "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.” 2

Those with existing apps, who earned up to $1 million in 2020 from all of their apps, can qualify for the reduced commission rate, as can any business new to the App Store. The standard 30 percent commission rate will apply for the remainder of a year’s time to any business that surpasses $1 million. If a business makes less than $1 million in a future calendar year, they can re-qualify for the reduced commission charge for the following year.

The program appears to be an endeavor worth exploring for any small business who wants to find new ways to make up for lost revenue from the pandemic. While you probably shouldn’t focus exclusively on the Apple operating system market, this is clearly a major part of the smart device landscape, and accounts for the largest percentage of potential customers.

1 https://www.statista.com/statistics/266572/market-share-held-by-smartphone-platforms-in-the-united-states/

2 https://www.apple.com/newsroom/2020/11/apple-announces-app-store-small-business-program/


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