How to reduce your fees after you've crossed the Small Business Threshold.
Graduating out of the Small Business Program (SBP) can come with mixed feelings.
You’ve hit the $1M threshold and you’re now paying a 30% commission on every transaction thereafter. But you’re also growing fast and you’ve hit a revenue milestone that 99% of apps will never hit.
It’s a classic ‘champagne problem’. But that doesn’t mean it’s a problem that shouldn’t be taken seriously. Moving from a 15% to 30% commission fee can remove thousands from your annual proceeds. But many apps who have passed the threshold are doing something about it.
Web monetization allows you to keep more of your revenue while driving higher retention and LTV (Lifetime Value).
In this guide we outline what to do after you hit the threshold and detail exactly how Web Monetization helps you grow revenue and gain more control over the entire customer experience.
What happens if I don’t do anything?
If you’ve crossed the threshold, the exact cost of doing nothing will vary depending on your payment mix, taxes, refunds, currency conversion, and contract terms.
Here’s three examples based on three different revenue scenarios.
*Table does not account for any change in conversion, or increases in customer LTV apps often see on the web.
Gross iOS revenue | Fees at 15% | Fees at 30% | Selling on the web (~5.5%) | 30% vs 5.5% difference |
|---|---|---|---|---|
$1.2M | $180K | $360K | $66K | $294K |
$2M | $300K | $600K | $110K | $490K |
$3M | $450K | $900K | $165K | $735K |
How can I pay less fees after I’ve crossed the threshold?
Web monetization refers to apps distributing or monetizing (or both) on the web and has quietly become a core lever many top apps pull to reduce the fees they pay after they cross the SBP threshold.
There are two key motions when it comes to web monetization.
Some apps run both, but they are different tools for different problems and regions. Both ultimately allow apps to circumvent Apple’s 30% App Store fee.
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 (US & Japan only)
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.
You don't have to say goodbye to the App Store
The obvious concern is that moving payments to the web means losing App Store distribution, removing IAP and asking every existing subscriber to start again.
It’s true that running Web2App means you lose the distribution of the App Store, but App2Web is different.
You keep the distribution power of the App Store while shifting revenue to the web. You don’t lose IAP either; Apple’s T&Cs require apps to keep IAP live while offering external payments and existing subscribers can't be moved to the web without cancelling and resubscribing.
Stay compliant when running App2Web: Lessons from Cal AI
When Cal AI, a leading calorie tracking app, was pulled from the App Store back in April, some developers assumed this was the start of a pushback from Apple. But the saga actually helped further define the App Store’s redlines.
For any app thinking about running App2Web, the three specific violations that dropped Cal AI into hot water with Apple are well worth understanding. Below Lucas covers what they are and why the episode actually made App2Web easier than ever to execute safely.
Learn what the Cal AI App Store saga really taught the market.
Less fees, more responsibility
Before shifting revenue to the web, we should add a touch of caution.
The App Store handles several critical functions that many developers take for granted. Before moving to the web and reducing App Store fees, 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 to do if you've already crossed the threshold
Ready to start weighing up Web Monetization for your app? Start with your own numbers. Look at your gross iOS revenue, the date you crossed the threshold, your subscription mix, and the amount of new US traffic you expect over the rest of the year, then model the difference between keeping those purchases on Apple and sending eligible transactions through web checkout.
The sooner you model it, the sooner you can make a sensible decision.
What to do if you crossed the threshold mid-year
If you crossed $1M in 2026, you're paying the higher commission on future sales for the rest of the calendar year.
The same hybrid approach applies here. Keep IAP in place, add a web checkout for eligible US traffic, and use the rest of the year to learn what works. You can start with a focused segment, measure conversion and net proceeds, then expand based on what you find.
Pay less App Store fees
Don’t let your success on the App Store stifle further growth. The Small Business Program threshold has already changed your economics, the next decision is whether to accept the new margin or do something about it.
Book a working session to model the opportunity and work through your web monetization implementation with Paddle.
