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App Store Small Business Program

developer.apple.com

11–20 of 37 posts

Re: App Store Small Business Program

#12

Am I reading this right that there's a big cliff between making $999,999 and $1M? With that and the somewhat fuzzy notion of "associated accounts", I predict a lot of ugly rules-gaming & enforcement activity in the future.

Rats of hanoi, cobra effect and all.

Apple should have made this like the tax rates, first 1M at 15%, rest at 30%.

With this move, apple didn't affect their revenue, while looked good to everyone. From a prior thread [1], this affects very little of apple's revenue.

[1] Information from Sensor Tower indicating the App Store cut would apply to an estimated 98 percent of iOS app developers who generate roughly 5 percent of the store’s revenue.

Re: App Store Small Business Program

#14

Am I reading this right that there's a big cliff between making $999,999 and $1M? With that and the somewhat fuzzy notion of "associated accounts", I predict a lot of ugly rules-gaming & enforcement activity in the future.

No, you are reading it wrong. All money up to $1 million is "taxed" at 15%, and all money after $1 million is "taxed" at 30%. It's like income tax brackets in the US. Thus, there is no advantage for trying to stay at $999,999. If you make $1.2m in sales, you get 15% taken on the $1m and 30% taken from the leftover $200k.

I think you are wrong. If you pass 1M$ in 2020, your 2021 apple tax rate would be 30%.

Key parts:

If a participating developer surpasses the 1 million USD threshold, the standard commission rate will apply for the remainder of the year.

-> Yes. For that year, first 1M is 15% but remainder is 30%. But following year, it's 30%.

If a developer’s proceeds fall below the 1 million USD threshold in a future calendar year, they can re-qualify for the 15% commission the year after.

->So anything you make affects your future tax rate.

Re: App Store Small Business Program

#15
post #12

Am I reading this right that there's a big cliff between making $999,999 and $1M? With that and the somewhat fuzzy notion of "associated accounts", I predict a lot of ugly rules-gaming & enforcement activity in the future.

Rats of hanoi, cobra effect and all. Apple should have made this like the tax rates, first 1M at 15%, rest at 30%. With this move, apple didn't affect their revenue, while looked good to everyone. From a prior thread [1], this affects very little of apple's revenue. [1] Information from Sensor Tower indicating the App Store cut would apply to an estimated 98 percent of iOS app developers who generate roughly 5 percen…

"should have"? But they did, that's exactly how it works.

Re: App Store Small Business Program

#16

Am I reading this right that there's a big cliff between making $999,999 and $1M? With that and the somewhat fuzzy notion of "associated accounts", I predict a lot of ugly rules-gaming & enforcement activity in the future.

No, you are reading it wrong. All money up to $1 million is "taxed" at 15%, and all money after $1 million is "taxed" at 30%. It's like income tax brackets in the US. Thus, there is no advantage for trying to stay at $999,999. If you make $1.2m in sales, you get 15% taken on the $1m and 30% taken from the leftover $200k.

That's still worse than having it all at 15%, so it's still worth breaking it up if possible.

Re: App Store Small Business Program

#18
post #13
post #10

good move, now it's time to get rid of the $100 yearly developer fee, which is absurd.

Hard disagree. This is needed to stop overflowing levels of trash like on android

What? The $100 fee has nothing to do with that, and everything to do with the review process. Like, do you seriously believe that makers of all the shitty apps out there can't come up with $100??

Also, Google developer account used to be paid at one point. I have no idea if it still is but when I used to publish in the early days there was a fee to pay. Didn't stop the shitty apps from appearing because....that's not what the fee is for.

Re: App Store Small Business Program

#19
post #4
post #2

This is a great step forward. The extra 15% will make the difference between survival or not for a lot of small/solo developers. Valve next, please.

We've already got the Epic Games Store that takes 10%, so no need to have Valve be next. Valve will eventually align themselves though, this is what happens in an healthy market.

Epic Game Store is still invite only as far as Im aware.
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