When creating iOS applications, there are several possible methods of distribution to consider.
Foraker works with all different types of clients: from entrepreneurs to established businesses and even enterprise customers. These different types of organizations often want to distribute their apps in different ways.
Here are the various options for distributing apps to iOS devices:
iTunes App Store [Program Details]
The most traditional method, the iTunes App Store allows you to price your application anywhere between free and $999. Apple pays the developer 70% of the purchase price, monthly via ACH bank transfer.
The developer can determine the countries/regions where the app is sold but cannot restrict who can purchase/download the app within those regions.
There is an optional educational discount you can provide for qualifying institutions.
App updates are free to users and are distributed easily through the App Store.
All apps are reviewed by Apple prior to inclusion.
iTunes App Store B2B Program [Program Details]
In many ways similar to the traditional App Store, the B2B program allows you to restrict your app to specific businesses who are also registered in the program. If you want the benefits of the App Store distribution method but it is not appropriate to have your app generally available in the store (i.e. it is customized for a certain business), this program can be a good alternative.
The B2B program has the same 70/30% split and payment characteristics as the mainstream App Store. Also, the program has a minimium price of $9.99 per app – free apps are not allowed [NOTE: this is no longer true - free apps ARE now allowed in the B2B program].
This program supports optional volume discounts for customers purchasing larger quantities.
App updates are free to users and are distributed through the App Store. This method allows the use of In-App Purchase and iCloud APIs.
All apps are reviewed by Apple prior to inclusion.
Apple Enterprise Developer Program [Program Details]
If you are creating an app for use inside your business, the Enterprise Developer Program allows you to distribute that app to your employees, inside your company.
This program does not have a limit on the number of devices per app and does not require per-device registration for constant builds like ad-hoc beta testing does, though it does require that each device be submitted as a member of the organization’s program.
You are not allowed to sell access to apps in the Enterprise Developer Program – doing so is against the guidelines and will get you booted from the program. Also, apps deployed this way are not eligible for In-App Purchase.
This program is used by many Fortune 500 companies to create apps internal to their employees.
The Enterprise Developer Program costs $299/year and a valid DUNS number. A previous restriction that required applicants to have at least 500 employees has been dropped.
Subscriptions [Program Details]
Many enterprise apps interact with a remote service to provide their data. Those services are often billed to customers through an annual subscription or support contract.
Like app purchases, Apple requires in-app subscriptions to follow the same 70/30% revenue split, if the service subscription is referenced in the app (i.e. ‘go to our Web site to sign up for service xyz’).
Alternatively, if you do not reference the subscription in the app, you are not required to share any revenue with Apple.
If you are developing In-App Purchase subscriptions or additional content, it’s a very good idea to review the updated App Store guidelines to ensure you are compliant.
Jailbreak
Jailbreaking is the process of bypassing some of Apple’s security software used to prevent users from installing applications from sources other than the App Store. Without the restrictions of Apple approval, you have access to APIs that would not be allowed in the App Store.
There is a small but committed community of jailbreak users that access services like Cydia – alternative storefronts that emulate the App Store experience to some degree.
What’s Best for You?
For the vast majority of developers, the traditional App Store route is the way to go: that’s where the customers are.
If you want to sell customized apps to companies, you should consider the B2B program.
Lastly, if you are in an enterprise that wants to deploy apps inside your company, the Enterprise Developer Program is a good choice.
Paul Lewis
on September 19, 2012 said:
Good information and really useful although it is out of date. The B2B option no longer has a minimum price so apps can be offered for free. https://developer.apple.com/programs/volume/b2b/
Hunter Hillegas
on September 19, 2012 said:
Ah, nice! Good to see that restriction has been lifted!
Ken
on October 23, 2012 said:
“You are not allowed to sell access to apps in the Enterprise Developer Program – doing so is against the guidelines and will get you booted from the program.”
Can you elaborate on what you mean by this?
Hunter Hillegas
on October 23, 2012 said:
Hi Ken,
The purpose of the Enterprise Program is for companies to develop and deploy iOS software to their employees.
What it is *not* for is for firms that want to sell access to that software to users outside of the company, effectively creating a shadow App Store. You are only allowed to distribute software in the EP to your employees, contractors, etc…
Apple: “The iOS Developer Enterprise Program is intended for companies who create proprietary, in-house iOS apps for internal deployment within the company only.”
If you want to sell software you create for iOS, you need to put it in the App Store or use the B2B program.
Ryan
on November 6, 2012 said:
Hunter,
We’ve been asked by a company to build an app that will be installed on only a few of their devices. It sounds like the B2B route is the way to go? Is there any risk in just distributing it to them via Testflight?
Hunter Hillegas
on November 7, 2012 said:
If they’ll own the source code, the simplest thing is probably to have them setup their own developer account and you deliver that source to them to build as distribute as they see fit – they could use TestFlight to distribute the app ad-hoc that way.
Ryan
on November 13, 2012 said:
Good call. Thanks.
Nitya
on November 15, 2012 said:
First time my comany would like to register for App ID in order to upload a vendor developed iPhone application.
What are the steps and approximate time involved in achieving above?
Regards,
Hunter Hillegas
on November 15, 2012 said:
Creating a new developer account for your company can take some time, depending on how long it takes Apple to verify your business details. All of the steps and process start here: http://developer.apple.com/ios
Nitya
on December 5, 2012 said:
Thanks .. My company has enrolled and iOS purchase payment is being processed.
Please let me know the time line required by apple to verify the app once uploaded to app store.
Alan McKean
on November 16, 2012 said:
I intend to have a subscription-based model, with subscriptions offered only on my web site. It will require a login from the app, but no in-app registration. Is that okay? Also, are there any restrictions on my email/print marketing materials that I should know about? The app will be free in the App Store but registration/ subscription will be on my web site.
Hunter Hillegas
on November 16, 2012 said:
It sounds like it should be okay to me. If you did offer a subscription in the app, it would have to be via IAP (i.e. not through some other purchase process or a link to your site)… and of course, a ‘Buy’ button that goes to your site would be against the rules also. What it sounds like you’re planning is basically an app that requires an external service subscription – there are lots of examples of this sort of thing (i.e. Basecamp clients, Freshbooks clients, etc…)
As far as your marketing, you should be fine as long as you follow the rules on the marketing site (https://developer.apple.com/appstore/resources/marketing/index.html). I don’t know of any specific rules that relate to apps that are fed by external content systems.
My caveat on all of the above is that the rules can change at any time so it’s best to keep up on what other developers are doing and also read and re-read the App Store Review Guidelines on the developer site from time to time as they do update it.
Alan McKean
on November 16, 2012 said:
I have read the restrictions on marketing materials (using only apple-sanctioned images, etc.) but haven’t seen any restrictions on drawing people to my site to subscribe. The reason I am questioning this is because a friend has had his app rejected several time due to references to his site in what the Apple representative called ‘marketing materials’. He did remove all references in his app to his site and finally got it through, but he (and I) are concerned that print marketing might be subject to the same restrictions as those in the app. Could Apple be so restrictive as to disallow marketing a subscription outside the app in print/emailed materials?
Hunter Hillegas
on November 16, 2012 said:
Well, this can get complicated… There are a couple of aspects, such as one specific reviewer’s view of the rules, etc…
I don’t see anything in the App Store Review Guidelines that would include print materials… But from your response it sounds like your friend had stuff *in his app* pointing to the Web site, where the subscription occurs. That’s definitely not allowed – you can’t point people to your site if you’re not gonna offer an IAP version of the subscription.
Apple is approving your app, not your print materials. Unless you have something in your app that tells people to go look at your print materials to get subscription info, I couldn’t personally imagine getting swept up in that. The issue isn’t that his Web site had info on the subscription, it’s that the app told people to go there which could seem like he was just trying to get around the IAP rules.
Riccardo Sulpizio
on November 26, 2012 said:
You mention the B2B program but what about the VPP program ? Does the Volume Purchase Program ( which is now available in 8 countries ) have the same 70% / 30% split as the B2B and iTunes App store have ?
This may be a good alternative to sell Apps in quantity to a company you don’t work for. Thoughts & ideas Hunter ?
Please ? Thanks or your opinions and sound advice.
Hunter Hillegas
on November 26, 2012 said:
Hi,
Yes, the VPP program has the same 70/30 split.
VPP is designed to allow purchasing departments in large firms to acquire iOS app licenses in bulk, rather than forcing each employee to purchase an app on their own. You can use the VPP in conjunction with the B2B program.
One thing to keep in mind though is that the non-education VPP program doesn’t have a discount component. It’s not setup to allow you to lower prices based on quantity.
Eric Purdy
on November 29, 2012 said:
First off Hunter, I would like to apologize for the length of this upcoming post, and my lack of knowledge on the matter.
With that being said….
1. Let’s say a company develops an app, and they intend to sell it to another company who is enrolled in the VPP. Does the development team then become responsible for gathering DUIDs of the devices? Or is that strictly an “in-house” distribution model?
2. Since it’s a custom app, they would technically be able to offer it for “free” while still being paid the development fee, correct?
3. Once the app is developed, is there truly no other way to distribute it other than sending it through the Apple Store?
4. Lastly, as an Enterprise Developer, does that mean apps can only be distributed internally? Or does that give you the ability to develop and distribute on the App Store?
Again, sorry for my lack of knowledge, but I’m going brain dead attempting to read all of the documentation in the Apple Website over the past 2 days, and you seem extremely knowledgeable in this area. Thus the reason I decided to pose these questions to you, as they are the last few questions I can’t quite figure out the answers to.
Thank you in advance.
Hunter Hillegas
on November 29, 2012 said:
Hi Eric,
No problem, let me take a crack at these:
1. No, in this circumstance, no UDIDs are required for you as the developer, that’s just for in-house (‘Ad Hoc’) distribution. You specify the firms that are allowed to download your apps and then it’s up to them to handle distribution, typically using redemption codes but also possibly using an MDM (mobile device management software).
2. Sure, you should be able to do this – negotiate your pricing terms outside of the App Store and then get paid that way… Previously B2B and VPP apps couldn’t be free but that’s since changed and that restriction has been lifted.
3. The App Store, along with its various programs like B2B and VPP, is the primary means of iOS app distribution, by design. The only Apple sanction alternatives are the ad-hoc system (primarily for testing, less than 100 devices) and the Enterprise Developer Program (internal to the company that has signed up).
4. The Enterprise program is entirely separate. If you also want to sell apps on the store, you need to have two accounts – one in the Enterprise program and one in the standard developer program.
Hope this helps.
Eric Purdy
on November 30, 2012 said:
Ok, so just so I know I understood this right.
A. If you are distributing internally, it is required that you have UDIDs. Now, this can be distributed through Ad-Hoc, even if it isn’t the testing portion? Or Ad-Hoc can only be used for testing… That part I’m still a little unclear about.
B. In the Enterprise Developer Program, you can distribute internally, but does this mean you can setup an internal App Store without breaking the Apple Contract?
C. If an app is developed, and then given to a company to be compiled with their Enterprise Developer account, does that make it an internal app to be freely distributed within the company?
I’m sorry for being so needy, but you seem to know WAY more on this matter than myself, and I have found that speaking directly to someone with the knowledge makes it more easily attainable than reading about it. Mainly because it can be more specific(case in point).
Again, I’m sorry for creating such a long post again, I’d just like to be sure that I understand the information correctly, before moving forward.
Hunter Hillegas
on November 30, 2012 said:
A. Ad-hoc is designed for testing – 100 devices max, UDIDs required. There’s nothing technical that would prevent you from distributing an app that way for people that aren’t ‘testers’ but policy wise, you’re not supposed to use it to say, sell the app to a hundred people. The ad-hoc certificates also expire periodically – it’s not a good way to distribute apps long-term.
B. A lot of big companies do indeed have their own internal ‘App Store’ like Web sites or even apps to distribute the stuff they develop under the Enterprise program, yes. We here at Foraker have worked on several projects that were distributed that way.
C. I’m not sure I totally follow this question but the Enterprise program is designed for distributing internally inside your (or your client’s) company. For example, you build an app for GM who then distribute it to 50,000 salespeople using their Enterprise program membership.
No problem, happy to help.
Eric Purdy
on November 30, 2012 said:
You are the man Hunter. You cleared it up perfectly for me.
A company can develop an app and sell it, as long as it is compiled/distributed through the purchasing company’s Enterprise program. Thus, enabling them to host it internally, and prevent others from accessing it.
Also, ad-hoc is for testing only, simply because of the potentially harmful ramifications and the short-lived lifespan of its cert. But if they host it internally, they can keep the link running for at least a year(due to one cert’s expiration) and then do annual updates to renew the cert each year as well as upgrade the app.
Thank you so very much, as you have made this much simpler to understand in my eyes.
It is truly, greatly appreciated.
Danny Tsang
on December 12, 2012 said:
Can you clear up if there are difference between the VPP program for Education vs VPP for Business?
My issue is that we are developing an application for an educational client, and are planning on deploying it through the B2B way.
Can our educational client get access to this application by enrolling in to the VPP for Education, and providing us the AppleID used?
And then any future non-edu clients we have that will also use the product could simply just sign up for VPP for Business?
Hunter Hillegas
on December 12, 2012 said:
They are similar and work through the same mechanism. As for your specific question as to whether an educational purchaser can get access through that VPP program, I’m actually not sure. I believe the answer is yes but if this is a critical issue for you, I’d recommend contacting Apple Developer Support to ensure that your specific configuration will work.
Brian Smith
on January 21, 2013 said:
Hunter, my company is developing a consumer app that will eventually be submitted to the App Store. From your understanding, could we use the Enterprise Program license to conduct a decent-sized internal beta with associates (100+), and then after the beta, use the Developer license to distribute to the App Store.
Hunter Hillegas
on January 21, 2013 said:
Actually, that might get you into some trouble. You’re explicitly not supposed to deploy apps to people outside your company with the Enterprise program. Apple’s pretty clear that it’s not supposed to be a substitute for Ad-Hoc testing in the normal program. That said, I know some firms have done it so I guess it’s a question of your tolerance level for risk-taking.
Sean Leonard
on January 24, 2013 said:
Hi Hunter,
Great information. Thank you.
I am working on an Apple app and would like to submit the app in pre-beta form and then update at my general availability. Am I able to submit without any key or search words and then at GA update my re-cert paperwork with key or search words?
I don’t want my beta version to show up in Apple App store searches so I was thinking of submitting for certification without key words.
Thanks,
Sean
Hunter Hillegas
on January 24, 2013 said:
Many of those fields are required but if you want to submit and have an app approved that you don’t want to be generally available right away, you can choose to ‘Hold for Developer Release’ when you submit. When you pick that option, the app will not appear in the store after approval until you go back into iTunes Connect and explicitly release it.
Bill Pope
on March 11, 2013 said:
Hey Hunter, I work for a large company (100K+ employees) that has internal MDM/MAM capabilities. We have a Developer license and have internally developed IOS apps and have deployed through our MDM/MAM to our employees. We have a new use case that that requires us to distribute an internally developed app to our resellers (several thousand). The app is free and we would prefer to manage through our internal MDM/MAM.
3 questions in regard to this use case:
1) Does distributing a free internally developed app with our MDM/MAM to a reseller break the Apple agreement, since it is not technically to “our” employees? Our resellers are partners, but are definitely not part of our company or our employees.
2) If we have to use the B2B store (which I hope we don’t), and we are distributing several thousand of the free app to resellers, do we really need to manage the redeem codes? Not really clear on how this works. If it’s free, do you still need redeem codes in the B2B store? Part of this question revolves around “how” we distribute the app. Currently only MDM’s have support for Apples Volume Purchase program. MAM’s really don’t. We would rather just use our MAM if we don’t really need to keep up with redeem codes.
Hunter Hillegas
on March 11, 2013 said:
This sounds like a bit of a grey area… If your resellers are ‘partners’ (i.e. there’s a contractual or other business relationship between you and them) then you could probably make a reasonable argument that you should be able to use your enterprise deployment program license to give them the app… but it’s not explicitly broken out that way. You might want to contact Apple’s developer program support for specific guidance on this one.
All B2B apps use redemption codes, regardless of price. If you’re going to have to use the B2B program, I’d recommend watching the WWDC 2012 Session 311 video on the topic. Also, the VPP/B2B FAQ is here: https://vpp.itunes.apple.com/faq
Eric Jacobson
on March 25, 2013 said:
Great post Hunter. I am researching using B2B apps and the Volume Purchase Program, and there seems to be a flaw in Apple’s policy, unless I am missing something:
1) Now that Apple allows free B2B apps, what prevents me from listing apps for free and arranging payments for B2B apps outside of the VPP store and side-stepping Apple’s 30% cut?
2) Once B2B apps are purchased (either free or not) by a business in the VPP store, they are given a list of redemption codes. Can these codes be redeemed by anyone, even people that are not employees of the company? In theory these codes could be given to the general public, right?
Hunter Hillegas
on April 1, 2013 said:
In theory the VPP codes can be given to anyone, yes.
Keep in mind though that Apple can terminate your membership in the program at any time. If you go against the spirit of the agreement, even if you think you’re in some sort of technical middle ground, they can nuke you and you can’t deploy anything on iOS. You want a good relationship with Apple, not an adversarial one.
That said, there are many services that have their own costs outside of the App Store (i.e. subscription services, maintenance agreements, etc…) and that’s perfectly fine as long as you play by the IAP rules (if applicable). Apple also wants a vibrant platform and they’re in this to sell iPads far far more than they are to get 30% of app sales.
Kalyan
on April 1, 2013 said:
Hi Hunter, My company is planning to develop a app which is used for Induction program for new joiners, its a plain list of html pages without any dynamic pages. We want to make this available say on max 6 devices, which can be loaded on ipad and can work offline. What is the best solution? Its only for internal distribution.
Hunter Hillegas
on April 1, 2013 said:
Hi,
For your use-case, I’d probably just join the regular developer program and distribute using normal ‘ol Ad-Hoc builds. Doesn’t sound like you need anything special.
Aldrin Pereira
on May 14, 2013 said:
Dear Hunter
I have been working on an app (for the iTunes App Store) for someone who needs to use it for dispatching bookings to chauffeurs and cab drivers. An integral function of the app is to track the driver’s location (when he is signed onto shift within the app) and to beam the co-ordinaries to a remote database via a URL call. This would enable the driver’s company to see him on a map and thus aid in efficient dispatching.
My worry after having read the App Store review guidelines recently is that the app might get rejected by Apple due to the clauses in the Location section. On the other hand I am aware that some apps already have such a feature of driver tracking so must I really worry and/or is there something the app or it’s iTunes description needs to state in order to make it acceptable for release.
I really don’t know who to check this doubt with and so would be thankful for your kind response.
Thanks and regards
Aldrin
Hunter Hillegas
on May 14, 2013 said:
When it comes to App Review questions, you really don’t have a lot of recourse other than to submit the app and see what they say. If they do reject it, you can appeal that rejection and/or make changes to comply.
Part of successful navigation of App Review is understanding intent. The rules about dispatch are likely related to liability that can arise from bad routes, etc… When you word your description, make sure it’s written in a way that reflects your intent to stay within the guidelines. One thing that won’t help you is to cite other apps with the same features… Don’t try that.
Aldrin Pereira
on May 15, 2013 said:
Thanks Hunter for the prompt response. I shall follow your advice which is very good. And naturally I won’t cite other apps. Thanks for mentioning it anyway.
Sheenu Jain
on May 18, 2013 said:
Hi Eric,
First of all I would like to appreciate you for the patience and understanding with which you solve our queries andgive us comprehensive replies.
My company has built an ios app which they wish to sell to a specific company. Because of the confidentiality of the data they don’t want apple to host the ipa. I wanted to know :
1) Is it fine if we sell the app through our distribution profile or ask them to sign with their distribution profile? Does implementing any of the way break apple contract?
2) You mention in an earlier query that in b2b program if we hist the app for free and do the fee negotiation outside app store then we can bypass the 30% apple’s profit cut. Have I understood that correctly?
Hunter Hillegas
on May 18, 2013 said:
1. No, you can’t sell the app ‘through your distribution profile’. You can sell the app to this other company and they can sign it with their own Enterprise profile – that’s perfectly fine. In that configuration, Apple’s not involved with the distribution at all. This is not uncommon in the enterprise market. The key is not selling access to your Enterprise program access – it has to be deployed by the company that is using it.
2. That’s right, though you can’t include information in the app that would direct a customer to this relationship – i.e. all of that relationship needs to be handled outside the app. In the commercial space, the Kindle app is a good example of this – Amazon has zero links or even mention of a Kindle store in their app – customers have to already know it exists. That allows them to not have to offer every book as an IAP.
Hope that helps.
Sheenu Jain
on May 19, 2013 said:
Thanks Eric for such a quick response. So, in my case the best way to sell the app to the other company is to give them the code and let them sign it with their certificate.Right? Or is there a better way?