22 July 2019
At Build 2018 Microsoft had announced a change to the fee structure for developers in a bid to encourage adoption of the Microsoft App Store. The company had stated that developers will be able to take away 95% of revenue which is an increase from 70% which was given earlier.
“Starting later this year, consumer applications (not including games) sold in Microsoft Store will deliver to developers 95% of the revenue earned from the purchase of your application or any in-app products in your application, when a customer uses a deep link to get to and purchase your application,” the software giant had announced last year.
“When Microsoft delivers you a customer through any other method, such as in a collection on Microsoft Store or any other owned Microsoft properties, and purchases your application, you will receive 85% of the revenue earned from the purchase of your application or any in-app products in your application.”
The most popular category, games, have been excluded from the deal, and the developer share will be 85%/15% for apps purchased via affiliate and promotional links. The change was expected to be implemented at the end of 2018, however, it took 2-3 months longer to be rolled out.
The change should encourage smaller developers to upload applications to the Store for hosting purposes, and only pay 5% of revenue if the sale is driven from the developer’s website. The cost is justified by not needing to be involved with other hosting and payment processing services, which charge a much higher fee. Microsoft will take 15% of revenue if buyers found the app by searching the Store or via other promotion.
Microsoft Store is available to more than 700 million desktop users and the new revenue scheme would benefit developers tremendously.