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.

Tagged with Microsoft Store