Free Apps Agreement: Applies to all free apps, including those containing ads. This agreement has no commission and requires no fee.
Paid Apps Agreement: Required for apps with in-app purchases or paid downloads. Apple takes a commission on revenue from paid apps and in-app purchases and will handle the payment process.
Log in to your Apple Developer account as the legal owner.
Go to "Agreements, Tax, and Banking" in your account.
Select the appropriate agreement:
For free apps, click on "Free Apps Agreement" and accept the terms.
For paid apps or apps with in-app purchases, click on "Paid Apps Agreement".
To receive revenue from paid apps and in-app purchases, you must complete payment and tax information in your Apple Developer account:
Payment Information: Register bank account details for payouts.
Tax Information: Fill out the required tax forms, such as W-8BEN (outside the US) or W-9 (US).
Apple offers the Small Business Program which reduces the commission from 30% to 15% for developers who meet certain criteria:
Requirements for Participation:
You must have an annual App Store revenue of less than 1 million USD (per calendar year).
You must apply for participation in the Small Business Program, which must then be approved by Apple.
All companies, including affiliates or individuals controlling the app, must also meet this revenue threshold.
Benefits: Upon approval, you will only pay a 15% commission on revenue from paid apps and in-app purchases, instead of 30%.
How to Apply for the Small Business Program:
Log in to your Apple Developer account.
Navigate to "Agreements, Tax, and Banking", and locate the Small Business Program offer.
Submit your application and follow the guidelines. Approved developers will have their commission reduced to 15% starting the next calendar year.
Distribution Rights: By accepting the agreement, you grant Apple the right to distribute the app through the App Store.
Revenue Sharing (Paid Apps Agreement only): The commission is typically 30%, but will be reduced to 15% for eligible participants in the Small Business Program.
Legal Responsibility: The legal owner is responsible for the content and functionality of the app.
Apple may update the terms for both the Free Apps and Paid Apps Agreement. The legal owner must accept the updates to continue distributing the app. The same applies to the Small Business Program, which may require annual renewal and confirmation of revenue thresholds.
Correct Information: Ensure that tax and payment information is accurate to avoid payout issues.
Stay Updated on Agreements: Keep track of changes to agreement terms, especially during major app updates.
Apply for the Small Business Program Early: If you qualify, it’s a good idea to apply as soon as possible to benefit from reduced commission.
