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Apple Announces App Store Small Business Program

(www.apple.com)
830 points todsacerdoti | 1 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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1. mkl ◴[18 Nov 20 13:26 UTC] No.25136460[source]▶
Are you sure you're wrong?

The relevant sentence seems to be "If a participating developer surpasses the $1 million threshold, the standard commission rate will apply for the remainder of the year." (emphasis mine)

Apple takes the comission as you go, so it sounds like they take 15% of each sale until you hit $1M, and then 30% for every sale after that.

The next year they'd take 30% right from the start though, so a good year followed by a bad one would be unfortunate.