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Apple Announces App Store Small Business Program

(www.apple.com)
830 points todsacerdoti | 3 comments | 18 Nov 20 11:04 UTC | HN request time: 0s | source
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karolkozub ◴[18 Nov 20 11:30 UTC] No.25135615[source]▶
Wow. That's amazing. That's a 20% increase in revenue for those eligible. I'm guessing they decided the increased value of their products from more smaller developers creating apps for the platform is greater than the lost revenue.

If I understand correctly though, since it's a hard cutoff it creates this gap between 1m and ~1.2m where you're actually worse off by making more money pre-tax.

   999k --[-15%]--> 849k
  1000k --[-30%]--> 700k
  1213k --[-30%]--> 849k
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HatchedLake721 ◴[18 Nov 20 11:35 UTC] No.25135653[source]▶
It's progressive. You pay 15% on first million you make. 30% on amount thereafter.

EDIT: It looks like I am wrong, ignore me.

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madeofpalk ◴[18 Nov 20 11:49 UTC] No.25135767[source]▶
Except then the next year you get kicked out of the program and back to 30% on every dollar?
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1. gzimhelshani ◴[18 Nov 20 11:55 UTC] No.25135798[source]▶
No, you start by 15% default until you reach the $1m threshold. After that you pay 30% for the remainder of that year. Please correct me if I'm wrong.
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2. jclardy ◴[18 Nov 20 12:14 UTC] No.25135919[source]▶
That is correct, but then the next year you start at 30%. So if you make slightly less next year you will end up earning less money that year since it is all at the 30% cut (And then the following year will fall back down to 15%)
3. Dylan16807 ◴[18 Nov 20 12:14 UTC] No.25135920[source]▶
That's only if you're in the program.

If you get kicked out, you're stuck paying 30% for at least a year.