Microsoft Store Adopts A New Revenue Model

Last year, in May, Microsoft announced a new revenue model. It would be developed for the Microsoft Store. The new revenue model was supposed to be delivered by the company by late 2018, but as they could not accomplish that before the deadline, they decided no to notify developers about the delay. This issue has been talked about in January as well, and a year later the new revenue model is finally delivered by Microsoft.

Microsoft Store launched a new revenue model for app devs

The new App Developer Agreement (ADA) of the Microsoft Store states that as part of the new model developers can get up to 95% of their revenue. The only thing they need to do is to pay Microsoft Store a 5% fee if a user installs their app through a campaign ID link. The same things happen if the user finds their app using the web search.

However, developers might even get a smaller percent, 85% revenue in return because they would have to pay a fee of 15% in case a user discovers the app through the Microsoft Store search or other “Microsoft-owned” properties.

The new Microsoft Store revenue model does not include games, and it only applies to apps

This is still a much better revenue model than before because no matter how users would find the app, developers would even need to pay a fee of 15%. This way, after the cut of 10%, this can be considered a decent improvement.

Of course, not in all types of acquisitions, the 95%/5% new Microsoft Store revenue model can be applied so out interest is still high because it is curious how Microsoft might end up bringing the 5% fee to all kinds of app acquisitions not matter the way a user discovered your app.

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