Revenue share on AppSource
My team is planning to build an Add-in for Office Store, which I believe is belong to AppSource. I wonder how the revenue share works between the add-in creator and Microsoft. I checked this doc from Microsoft https://query.prod.cms.rt.microsoft.com/cms/api/am/binary/RE4xqkx, and it looks like MS gets 20% from the revenue. Correct me if I'm wrong. I would like to hear from anyone who has the info! Thanks! 🙂
On 1), a good start point is: https://docs.microsoft.com/en-us/azure/marketplace/partner-center-portal/commercial-marketplace-co-sell
On 2), payment is also handled via the SaaS fulfilment APIs. Essentially the customer indicates the intent to purchase and therefore agree to be billed, as the publisher you provision whatever is required and notify via the SaaS API when it's ready for billing to start: https://docs.microsoft.com/en-us/azure/marketplace/partner-center-portal/pc-saas-fulfillment-api-v2
These are great questions.
1. IP Co-sell eligibility is intended for software that runs on Azure, and you can learn more about it here: https://aka.ms/Co-sellPartnerengagementguidepartnerlink
2. Can you elaborate on what you are expecting? Microsoft is responsible for billing, and this is based on the plan the customer has selected or consumption you emit through the metered billing API.
I have a better understanding now thanks to you. And I'm super impressed with your quick replies.
Last question (let me know if this needs to be placed as a separate topic)
If we have other business model (one-off purchase per content) not only subscription based, is it ok to build our own payment system for it?
To give you a context;
We're trying to build an image library, and users can request images they need if they cannot find an image on our library. This requested image will be a one-off purchase per image. (We'll also offer a subscription model where they can request certain number of images per month for example)
I've read here:
and it says "You are also free to monetize using your own payment model." and "Transactable SaaS apps are only purchasable using a work or school account. If you want to sell your add-in to Microsoft account-based users, you should consider implementing your own billing model."
Does this mean it's ok to build our own payment system without having to rely on SaaS APIs in cases that it's for different business models (non subscription base), and also for individual users that are not belong to companies/schools accounts?
I'm just trying to make sure we have sufficient knowledge for building an add-in to go along with MS to serve as many user needs as possible.
My pleasure! And you are correct: you can definitely sell licenses using your own payment system and simply use AppSource to distribute the add-in.
The considerations are whether you would prefer to build/buy a payment system versus pay a transaction fee to use Microsoft's and if selling on Microsoft paper (using the customer's Microsoft agreement) is valuable in reducing sales cycles.
Thanks Brian for the answer! All clear 🙂 We feel a lot more confident to build an Office add-in with the reliable support you gave us. Thank you so much.
Hi Eunsung - you're correct that the default rate is 20% although we just announced some new benefits (including a reduced transaction fee) at Microsoft Inspire a few weeks ago. This blog outlines the criteria for the benefits.
It's also worth mentioning that the way we monetize Office add-ins is through a SaaS service. You can learn more about that here.
Hi Brian, thank you so much for your reply.
Here are some follow up questions.
1) I checked the links you directed me to, and I wonder what 'Azure IP Co-sell eligible' means? Can you direct me to some references to see whether our product can be eligible for this?
2) Also, in the "Monetize your Office 365 add-ins...' article, I've noticed there's API we can use for authentication process (sign-up / log-in). How about payment process? Does Microsoft provide APIs for payment transactions as well?