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Updated Microsoft Store App Developer Agreement: New Revenue Share

blogs.windows.com

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Re: Updated Microsoft Store App Developer Agreement: New Revenue Share

#2

Post by jawns »

Here's how the new payment structure works:

> When Microsoft delivers a customer through other methods (tracked by an OCID), such as when the customer discovers the app in a Microsoft Store collection, through Microsoft Store search, or through any other Microsoft-owned properties, then you will receive 85 percent of the revenue from that purchase.

> When there is no CID or OCID attributed to a purchase, in the instance of a web search, you will receive 95 percent revenue.

So this is all about rewarding organic discovery, or paid discovery outside of Microsoft channels.

In other words, by allowing your app to be discovered first through the Microsoft Store search, you're paying Microsoft what amounts to a 10% commission.

And then, regardless of how it was discovered, you're paying 5% to Microsoft just for being on the platform.

It will be interesting to see what effect this has on the ecosystem. On the one hand, it seems like a reasonable shifting of costs. If you rely mostly on Microsoft for acquiring new customers, then Microsoft should get a little bit more of a cut, and if you rely mostly on your own marketing methods, then it should get less. But on the other hand, part of the strength of an ecosystem-based business model is that it's a one-stop shop, and one would think that Microsoft would want to incentivize discovery happening within that ecosystem, not to disincentivize it.

Re: Updated Microsoft Store App Developer Agreement: New Revenue Share

#3

Post by ductionist »

jawns wrote: post #2

Here's how the new payment structure works: > When Microsoft delivers a customer through other methods (tracked by an OCID), such as when the customer discovers the app in a Microsoft Store collection, through Microsoft Store search, or through any other Microsoft-owned properties, then you will receive 85 percent of the revenue from that purchase. > When there is no CID or OCID attributed to a purchase, in the insta…

That sounds about right, although 5% (or 15%) is a pretty good deal IMO for worldwide payment processing, installer and update distribution, DRM, and their built-in tools like crash reporting, push notifications, analytics, affiliation, and attribution.

Re: Updated Microsoft Store App Developer Agreement: New Revenue Share

#4

Post by stephenhuey »

jawns wrote: post #2

Here's how the new payment structure works: > When Microsoft delivers a customer through other methods (tracked by an OCID), such as when the customer discovers the app in a Microsoft Store collection, through Microsoft Store search, or through any other Microsoft-owned properties, then you will receive 85 percent of the revenue from that purchase. > When there is no CID or OCID attributed to a purchase, in the insta…

So if they are browsing your website, decide they’ll probably purchase it, but then later they open up the Microsoft store and search for it there, you lose money you would’ve had if they’d immediately downloaded it from a link on your website?

Re: Updated Microsoft Store App Developer Agreement: New Revenue Share

#5

Post by ductionist »

stephenhuey wrote: post #4
jawns wrote: post #2

Here's how the new payment structure works: > When Microsoft delivers a customer through other methods (tracked by an OCID), such as when the customer discovers the app in a Microsoft Store collection, through Microsoft Store search, or through any other Microsoft-owned properties, then you will receive 85 percent of the revenue from that purchase. > When there is no CID or OCID attributed to a purchase, in the insta…

So if they are browsing your website, decide they’ll probably purchase it, but then later they open up the Microsoft store and search for it there, you lose money you would’ve had if they’d immediately downloaded it from a link on your website?

If they click your link (that includes the `?cid` parameter) while they're on your website, I believe the `cid` value is cookied/stored with their Microsoft Store profile, and will be respected even if they buy later directly from the Store.

If they visit your website but don't click the link, then there's no way for the Store to attribute the sale to your website, so you'll probably be charged full freight (15%).

Re: Updated Microsoft Store App Developer Agreement: New Revenue Share

#6

Post by nxc18 »

I feel like given the circumstances, Microsoft should probably make distribution free and collect no revenue, at least until the platform becomes popular.

There are costs to targeting the Windows platform, especially if you're doing things their new preferred way (UWP). Primarily a slow, difficult to work with development kit. Lots of mysterious crashes that you can't do much about, lots of leaky abstractions over COM.

If anything, Microsoft should be paying developers to target their store. I do personally prefer modern apps and the experience of the store, I just know not to reach for it first. As a customer I would appreciate more apps, they need to figure out a way to make the platform more appealing for developers.

Re: Updated Microsoft Store App Developer Agreement: New Revenue Share

#10

Post by yunyu »

nxc18 wrote: post #6

I feel like given the circumstances, Microsoft should probably make distribution free and collect no revenue, at least until the platform becomes popular. There are costs to targeting the Windows platform, especially if you're doing things their new preferred way (UWP). Primarily a slow, difficult to work with development kit. Lots of mysterious crashes that you can't do much about, lots of leaky abstractions over CO…

They've attempted to do that before: https://www.theverge.com/2013/3/19/4124548/microsoft-paying-...

All that lead to was a bunch of similar looking apps of questionable quality flooding the store.

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