Microsoft Store’s New Revenue Model Finally in Effect

Posted on March 7, 2019 by Mehedi Hassan in Windows, Windows 10 with 10 Comments

Microsoft announced a new revenue model for the Microsoft Store back in May of last year. The company was supposed to deliver the new revenue model by late 2018, though it had failed to do so or notify developers about the delay. We reported about the incident back in January, and Microsoft is now finally delivering the new revenue model.

Microsoft Store’s new App Developer Agreement (ADA) states that developers can get up to 95% of their revenue as part of the new model. Developers will only have to pay a 5% Microsoft Store fee if a user installs their app through a campaign ID link. The same applies if the user finds their app through a web search.

However, if a user discovers the app through the Microsoft Store search or other “Microsoft-owned” properties, developers will have to pay a 15% fee, getting 85% revenue in return.

The changes only apply to apps and do not include games.

And that is still a much better revenue model than before — considering developers always had to pay the 15% fee in the past, the 10% cut in fee could be a decent improvement for most. Of course, the 95%/5% revenue model does not apply to all types of acquisitions, so it will be interesting to see if Microsoft ends up bringing the 5% fee to all kinds of app acquisitions regardless of how your app is discovered by a user.

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Comments (10)

10 responses to “Microsoft Store’s New Revenue Model Finally in Effect”

  1. Avatar

    dontbe evil

    nice


    p.s.

    site notifications (top/right) are still broken

  2. Avatar

    mattbg

    This makes a lot of sense - fees based on how the user discovers the app. It's right that Microsoft should get more if they bring the customer and less if the developer themselves brings the customer.

  3. Avatar

    chrishilton1

    Microsoft should just scrap the fee and get developers interested in writing apps for the store, it's already almost too late for the store to succeed. Whilst it has done a great job with trashing OneNote and only making that as a store app now, you try searching for the Teams app in the store. And whilst I'm ranting, why are Project and Visio still separate apps and not part of the core of Office?

  4. Avatar

    markbyrn

    Smart move. Given the state of the Windows Store, the 10% cut will be negligible to MSFT revenue.

  5. Avatar

    locust infested orchard inc

    If Microsoft had this Store revenue model from the outset upon the release of Windows Phone 7, the events that culminated in the official announcement of the death of W10M on 10th Dec 2019 could well have been so very different.


    Support for W10M may well be dying tortuously slowly, but it still operates magnificently on my Lumia 950 XL.

  6. Avatar

    skane2600

    95% of nothing is still nothing.

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