Posted by Sameer Samat, VP, Product Management
Helping developers build sustainable businesses is a central part of Google Play’s mission. We work with partners every day to understand the challenges and help them bring their innovative ideas to life. Getting a new app off the ground and into orbit isn’t easy! To support their pursuit of growth, we offer a wide range of support, from powerful marketing tools and actionable data in the Play Console to training via the Play Academy to best practices and resources for thought leaders, programs such as Indie Games Festival, Indie Corner, and Accelerator Programs around the world. We’re always looking for new ways to give them that extra boost.
Starting July 1, 2021, we’re reducing the service fee Google Play receives when a developer sells digital goods or services to 15% for the first $ 1 million in revenue each developer makes each year. With this change, 99% of developers worldwide who sell digital goods and services through Play can reduce their fees by 50%. With these funds, developers can scale at a critical stage in their growth by hiring more engineers, expanding their marketing staff, increasing server capacity, and much more.
While these investments are most critical when developers are at an earlier stage of growth, an app doesn’t stop scaling once a partner has $ 1M in revenue – we’ve heard from our partners that they are $ 2M , $ 5 million and even $ 10 million make a year with their services still on their way to self-sustaining orbit. That’s why we’re making this reduced fee available for the first $ 1 million of total annual sales to every Play developer regardless of their size. We believe this is a fair approach, in line with Google’s overall mission to make all developers successful. We look forward to sharing all the details in the months ahead.
As a platform, we are only successful if our partners are successful. Android and Google Play have always listened to our developer partners around the world, and we continue to consider their contributions as we build and operate the ecosystem. We look forward to more companies setting new standards on Android and having further discussions with our developer community to find new ways to support them technically and economically in building their business.