Medialets, a company that got off the ground June 1, is providing a mechanism for developers to include ads in their applications and make them free to iPhone users on the App Store. Revenues are split between Medialets and the developer—Apple (NSDQ: AAPL) gets none. Developers need to drop a code into their applications for the ads to show up correctly and allow for Medialets to offer metrics and tracking info on each ad campaign’s performance.

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It sounds like just the kind of thing Apple wouldn’t tolerate: a company partnering with others to offer applications for free on its App Store and then monetizing their work through ads. But Medialets CEO Eric Litman says that’s exactly the case and that none of the advertising revenue will go to Apple’s coffers. “It’s in Apple’s best interest” to see developers prosper on the new distribution model, Litman said. Perhaps it doesn’t hurt that the longtime online executive worked at NeXT Computer Inc., a company founded by Steve Jobs in 1985 after he left Apple Computer.

With a good user experience, a central distribution point and billing and payment systems already under Apple’s belt, Litman called the new platform a “significant differentiator.” Medialets has grown to 14 employees in less than 45 days and is all internally funded for the time being. The company is working with big ad agencies and brands to help developers find a path to provide ad-supported content while still making a dime.