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.
I've hit the threshold, what happens now?
Your prior calendar year's proceeds must be under $1M to start a new year at 15%, and your current year's proceeds must stay under $1M to keep it. The moment you cross the threshold mid-year, 30% applies to all sales from that point forward.
Once you've lost the 15% rate, reclaiming it takes time: you need a full calendar year to come in under $1M, and the 15% rate only kicks back in the year after that.
Waiting out a year or more at 30% to reclaim a rate you're likely to lose again isn't a viable strategy.
The more useful question is whether you can reduce what you're paying Apple right now.
Enter Web Monetization.
What is Web Monetization?
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
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 selling into the US/EU/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 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.
