Google has revealed that the service fee charged to Play Store developers could be reduced by up to 50%. The tech giant believes this is will help developers build sustainable businesses.
“We work with partners every day to understand the challenges they face and help them bring their innovative ideas to life. Getting a new app off the ground and into orbit is not easy!” reads a blog post from Google.
This why, starting from 1 July 2021, Google will reduce the service fee Google Play receives when a developer sells digital goods or services to 15% for the first $1M (USD) of revenue every developer earns each year.
“With this change, 99% of developers globally that sell digital goods and services with Play will see a 50% reduction in fees. These are funds that can help developers scale up at a critical phase of their growth by hiring more engineers, adding to their marketing staff, increasing server capacity, and more.”
The tech giant goes on to say that this kind of investment is most critical when developers are in the earlier stages of growth, scaling an app doesn’t stop once a partner has reached $1M in revenue.
“We’ve heard from our partners making $2M, $5M and even $10M a year that their services are still on a path to self-sustaining orbit. This is why we are making this reduced fee on the first $1M of total revenue earned each year available to every Play developer, regardless of size.”
This comes after Apple made a similar decision to reduce developer fees by 15% in 2020.
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