App Store Fees & Commissions in 2018
Most of the digital marketplaces take a percentage of the developer’s sales. App store is no different than the rest, but some would definitely say it’s more costly. Here are the numbers laid up for you.
App store requires developers to pay a fee of $99 per year. The fee can sometimes be a problem, but only for those who are just starting with app development or generate low sales throughout the year. For experienced developers, it’s just a minor expense.
When it comes to commissions, Apple isn’t cheap. They take 30% of every sale generated. App store even set the trend for prices which was followed by others. Some would argue that the App store takes way to much but since it’s the largest place to get an app for iOS the mentioned cut doesn’t seem too much for a market with such reach.
In addition, at the end of 2016 Apple introduced a new policy for the App Store to encourage developers to sell subscriptions as in-app purchases within iOS. That has reduced the standard App Store transaction commission from 30 percent to 15 percent.
The only condition is that the customer has been subscribed for more than a year. These percentages cuts have no significance for end users since it’s the developers who profit from the cut.
Payments to developers are made within 45 days of the last day of the month in which app purchases were made. For example, the amount you earned in January should be paid to you before mid-March.
To get paid, you have to provide all the required banking and tax information and meet the minimum payment threshold.
App Store Thresholds
There is a minimum amount of money you have to earn before you can get your money. It’s called the minimum payment threshold. If you don’t make this much money, App store keeps your money until the next payment cycle and it adds that amount (until it reaches the minimum payment threshold).
Minimum payment threshold has always been either $10 USD (if your currency is supported by Apple), or $150 USD (if it’s not) and it can’t be changed.
Gaming apps dominate the list of top-grossing apps. As of April 2018, Epic Games’ Fortnite makes about $1.9 million in daily revenue, with Candy Crush Saga by King in second place at $1.3 million per day through in-app purchases.
Most game apps are free to play, but the real money is made through in-app purchases. Last year, global revenue from In-App Purchases was projected at $37 billion. Besides gaming apps, there are others that have managed to reach the top charts like Tinder and Netflix and gain substantial revenue.
In the end, everybody pays and everybody earns, the question is just: How much? If you make more money from In-App Purchases, you’ll make more money for the App Store as well. The least pay those who develop free to play games/apps. Since they don’t sell anything the only fee they pay is $99 per year.