Apps are using web monetization to grow faster while staying below the Small Business Program threshold
If your app is approaching $1 million in iOS proceeds, the worst time to think about Apple's Small Business Program threshold is after you've crossed the line.
Web monetization (Web2App & App2Web) can help you keep more of your revenue while continuing to grow.
As well as allowing you to stay below the threshold for longer, shifting revenue to the web will help apps increase net proceeds, customer LTV, and gain ownership over the entire customer journey.
Below we detail what to do as you approach the $1 million mark and how monetization on the web is unlocking growth for apps that are still part of the Small Business Program.
What the $1 million threshold actually means
Apple's Small Business Program offers a 15% commission rate to developers whose total App Store proceeds remain below $1 million. The important word is "proceeds" here.
Apple calculates the threshold using sales after its commission, along with certain taxes and adjustments, so it isn't based on gross revenue alone. The calculation is also made globally across your App Store business, including all associated developer accounts. For multi-app portfolios, proceeds from all apps count toward the same $1 million limit.
Once your proceeds exceed $1 million during the calendar year, Apple's standard 30% commission applies to future sales for the rest of that year, making the jump from 15% to 30% on new App Store revenue sudden for a lot of developers. The exact threshold depends on your mix of sales, refunds, taxes, currencies, and adjustments, which is why gross revenue is only a useful proxy. You should always use the proceeds figures in App Store Connect when planning the move.
The opportunity for founders approaching the threshold
Founders in the $900,000 to $1.3 million range tend to see two options: keep selling through the App Store and accept the 30% rate once they cross the threshold, or slow growth to stay under $1 million in proceeds. Neither is attractive, and there is a third option.
Many apps Keep App Store revenue below the threshold and route subscription overflow to a web checkout. This is known as web monetization and has two key implementation options, both serve different purposes and are suitable for difference regions.
Here's a quick summary of both:
Web2App
Web2App starts on the web. A user finds you through a paid ad or organic web search, pays via a web checkout, and gets directed into the app. Apple never sees the transaction and you own the customer from the first click.
This is the preferred method of international sellers or US sellers distributing their app into ROW.
App2Web
A user hits your paywall, taps an external link, completes the purchase on a web checkout and returns with access unlocked.
This is a monetization play for users already inside your app, not a new acquisition channel. Apps in the US/Japan (or selling into the US/Japan) can include buttons, external links, or CTAs directing users to web-based payments.
For developers who route purchases through App2Web or Web2App, the effective platform cost drops from 30% to approximately 5.5%, but the benefits aren’t limited to fees.
Other advantages include:
- Enhanced cash flow: 30 days from 60
- Pricing flexibility
- Direct ownership of the customer relationship
- Involuntary and voluntary churn prevention
- Control over UX and direct product enhancement.
The math: three ways to handle $1.3 million in proceeds
Here’s a simple example of App2Web in action.
Assume your developer account has already generated $900,000 in gross worldwide App Store sales this year, all qualifying for Apple’s 15% Small Business Program rate.
You expect another $400,000 in eligible US subscription revenue before the end of the year, taking total gross sales to $1.3 million.
For simplicity, this example excludes taxes, refunds, currency movements and differences in conversion or retention. It also assumes the incremental App Store subscription revenue would otherwise be subject to Apple’s 30% standard commission after you leave the Small Business Program.
Rates used:
- 15% Apple commission while you remain below the Small Business Program threshold
- 30% Apple commission on applicable revenue after you cross the threshold
- 5.5% cost on revenue processed through web checkout with a Merchant of Record (like Paddle)
At $900,000 in gross App Store sales, your proceeds after Apple’s 15% commission are approximately $765,000. That leaves around $235,000 in proceeds before you reach Apple’s $1 million Small Business Program threshold.
At a 15% commission rate, that gives you room for approximately $276,470 more in App Store gross sales before reaching the limit. Of the expected $400,000 in additional revenue, that leaves around $123,530 to plan for.
Scenario | App Store revenue | Web revenue | Estimated net revenue |
|---|---|---|---|
Do nothing and cross the threshold | $1,300,000 | $0 | $1,086,471 |
Route overflow to the web | $1,176,470 | $123,530 | $1,116,735 |
Route all incremental US revenue to web | $900,000 | $400,000 | $1,143,000 |
Be proactive and model the numbers yourself
The right approach will depend on your audience, conversion rates and product experience. But the broader point is simple: you do not have to wait until the Small Business Program threshold starts compressing your margins before thinking about monetization on the web.
For eligible apps selling into the US, App2Web can give you another lever for managing where new revenue is processed and how much of it you keep.
These figures are illustrative. Apple calculates Small Business Program eligibility using proceeds rather than gross sales, across the developer account and associated accounts. Subscription commission rates can also vary depending on subscriber tenure, so leave a buffer and model the economics using your own App Store Connect data and the latest Apple terms.
Less fees, more responsibility
Before shifting revenue to the web and maintaining your Small Business Program status, we should add a touch of caution.
The App Store handles several critical functions that many developers take for granted. Before moving revenue to the web, it’s important to find a substitute for these key backend responsibilities:
Global payments: Supporting different payment methods worldwide
Fraud prevention: Protection against chargebacks and payment fraud
Subscription management: Handling trial periods, renewals, and cancellations
Global tax compliance: Managing international tax obligations and complexity
Chargeback disputes and refunds: On the web, apps are responsible for any chargeback disputes and refund management
Partnering with an all-in-one payment solution like Paddle is a simple workaround. As well as managing your payments, sales tax and retention systems automatically, Paddle has partnered with Helium to create the only purpose-built App2Web solution.
By combining AI-native paywall optimization with a fully integrated Merchant of Record, mobile sellers can move more revenue to the web with confidence and protect conversion.
What the hybrid model looks like
For most subscription apps, the practical setup is a hybrid. Here’s what your App2Web flow might look like:
• In-app purchase remains available on the paywall.
• Existing subscribers stay on Apple billing.
• New US subscribers can choose a web purchase through an external link.
• Paddle handles web checkout, billing, tax, and related payment operations.
• Helium manages the paywall, conversion experience, and routing logic.
The app remains the product and the App Store remains an important distribution channel. You're adding a payment route for customers who are better suited to web checkout.
The implementation can start with a single plan and a single paywall. Test the flow behind a feature flag, measure conversion and retention, then expand based on what you learn. Keep IAP live alongside the web option and make the handoff clear to users.
Ready to grow on the web?
The Small Business Program is useful. It gives early-stage app businesses room to invest in growth, but it shouldn't become a reason to cap that growth.
If you're approaching the $1 million proceeds threshold, book a working session with Paddle to model your numbers, identify the revenue that can move to web, and decide what to launch before the end of the year.
