15 Per Cent Commision

Apple reduces App Store commissions to 15%

Earlier this week Apple announced their program to reduce the App Store commission to 15% for all of us earning up to $1 million per year. This is a big move by apple and really shakes up both my final project for my masters and how I may in the future aim to sell my applications.

One of the main reasons for selling outside the App Store has always been the 30% commission that Apple would take, which was extortionate. Having gone through this module and understanding the work and knowledge required to develop my own app store, even for a single app, I can begin to understand the figures around such an endeavour.

Paddle or FastSpring take no more than 9%… roughly. Apple offers more than those two. Extras such as Sign in with Apple, single purchases and subscription management rolling into both client and server side APIs, all acting as a Merchant of Record meaning like Paddle or FastSpring no hassle around global sales tax. It’s a beautiful eco system where “everything just works”, but was it really worth 21% more commission. Most of us thought not. I certainly didn’t… although less so the more I worked on my own for this Masters project.

Now all of that extra stuff that Apple provides, that could save me a ton of time to implement, is roughly 6% of commission!

So whats holding me back? Not much. The two key things I need to work out or get over are.

  • Multiple licenses for Businesses. The App Store is mainly catering to a commercial market so dealing with businesses or in my context theatres wanting to purchases licenses for say 10 workstations and these licenses need to able to be deactivated when staff leave the company and reactivated on another employees workstation, things become difficult.

  • I’ve always felt that updates to a piece of software should cost something to a user. Not necessarily bug fixes. But updates that contain new features and considerable amount of work surely should be reflected in the price somewhere… The problem is that Apple don’t currently allow for that business model. They seem to prefer either an in app purchase, or a subscription model… So maybe I just need to bite the bullet and do one of them?

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