Amazon Announces New Revenue Share for Developers and AWS Credit Promotion
This new program will allow qualifying small developers to receive technically 90% of revenue if your app is using Amazon’s AWS cloud services
Like much of it’s competing companies, such as Apple and Google, Amazon is launching a program to help to increase the amount of developers they have on board for their FireOS and Android app store. Everyday more and more small businesses are having to deal with the developer side of things, and with Amazon’s new system they are hoping to boost the number of small apps and businesses in their network, ensuring they have a decent way to start up and have less money taken whilst using the services. This is due to the revenue share which is generous in comparison to the other companies’, the AWS credit system, and the reduced cloud infrastructure costs. Though it is still a program, where developers will need to apply and they can get kicked out of, becoming re-eligible in the following year.
This new program will allow qualifying small developers to receive technically 90% of revenue if your app is using Amazon’s AWS cloud services. This is based off a standard 80/20 revenue share, but with 10% of that revenue being AWS promotional credits if the developers overall Appstore revenue is less than $1 million per calendar year. Whereas Apple and Google reduce their cut of a developers first $1 million in revenue from 30% to 15%. The credits can be used for Amazon Web Services such as storage, databases, AI and analytics and will prompt users to switch from competitor’s cloud services and become an AWS customer. These credits will be sent monthly, and the developers will choose which services they want to use the credit on. Also, the fact that this is mainly for start-ups will ensure they have a swift and easily accessible way to begin and then continue creating anything they can imagine.
As previously mentioned, you can get kicked from the program and apply the next year, but for Aamzon this is only if your revenue exceeds $1 million, but with Google, they will give developers an extra 15% of their first million. The current revenue split for most developers of apps for Google, Amazon and the like, is 70/30, but after EpicGames had a clash in what they believe is ethically right and made people aware that the developers should be receiving more for their work and effort, Amazon had stepped up with it’s 80/20. Apple and EpicGames are involved in a huge lawsuit that mentions this unfairness, and Apple’s response is that 30% has always been the norm for this. Another part of the trial, which is quite ridiculous, is that Apple say they don’t know how much they earn from their App Store. Phil Schiller said he didn’t know if they had brought in more money than it spent since 2009 “because that’s not how I look at the business.” -it’s to be noted that Apple’s app store brought in more than $60 billion in 2020, not really something that could be forgotten about. This brought about the conversation about how Apple takes much more than a payment processor should, and there is now mounting pressure to reconsider the cut, hence Amazon stepping in with this new revenue exchange and promotional offer.
As mentioned in Amazon’s announcement of this promotion, AWS can provide developers with over 200 services for them to stop spending so much time managing infrastructure and they can focus more on growing their business from the bottom up. Developers can deploy their tech services much faster and will be able to have help to promote their content by highlighting smaller companies within the Amazon Appstore with a new dedicated application row. Things like this will allow developers to let their creativity run, and create innovative products without worrying it will get lost in the midst of other popular apps and big businesses.
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