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.
Can I go back into the Small Business Program after graduating out of it?
Yes, but it will take some time to get the 15% back.
Apple determines SBP eligibility once per year, based on your App Store proceeds from the prior calendar year. So if you lose access to the 15% rate, you'll pay 30% for the entirety of the following year regardless of what your proceeds do in the meantime.
Only once a full calendar year of proceeds comes in under $1M can you re-enroll and regain the 15% rate the year after that. Re-enrollment isn't automatic either: you'll need to actively re-apply through App Store Connect when you become eligible again.
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: growing on the web vs passing the threshold
Thinking about Web Monetization? Unsure what the math actually looks like?
Here's an example based on a fictional app making $1.3M gross annual revenue, with no revenue growth year-on-year for illustrative purposes. In the first scenario, the app does nothing, and pays the full 30% fee the following calendar year.
The second scenario see's the same app route $124K, keeping App Store proceeds just below threshold and paying 15% on IAP.
Scenario | Cost | What you keep |
|---|---|---|
You do nothing | $390K | $910K |
You route overflow to web ($124k) | $183K | $1.12M |
*Table does not account for any change in conversion, or increases in customer LTV apps often see on the web. "Route overflow to web" assumes $124K routed to a web payment provider, blending 15% App Store commission on $1.18M with a 5.5% web fee on $124K.
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.
