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Meta Plans to Take Nearly 50% of Creator’s Earnings in Horizon Worlds

Meta Plans to Take Nearly 50% of Creator's Earnings in Horizon Worlds

Meta announced this week that it has started testing vending tools so that creators can sell the stuff inside Horizon worlds And earn real money. The company has now provided more details on how this will work, including the fees that creators will pay on earnings generated through the platform.

Meta says the goal of its various metaverse initiatives is to one day allow people to “make a living” creating virtual goods through its platforms. But in order for the creators to achieve this, they will need to incur exorbitant fees from the company.

Talking to The road to virtual reality About the new selling tools being made available to select creators in Horizon worldsMeta made it clear that anything sold in it Horizon worlds You’ll be subject to the same 30% fee the company charges developers who sell apps through its VR platform, and then an additional 25% fee on top of the remaining amount. The company provided the following example:

“…if a creator sells an item for $1.00, the Meta Quest store fee will be $0.30 and the Horizon Platform fee will be $0.17, leaving $0.53 for the creator before any applicable taxes.”

That’s an effective rate of 47.5% of anything sold Horizon worlds to Meta, leaving 52.5% to the creator.

Meta Plans to Take Nearly 50% of Creator's Earnings in Horizon Worlds
Image courtesy of Meta

This is a very voluminous operation, but it is not entirely far from contemporaries. Roblox, for example, takes between 30% and 70% of the revenue that creators generate depending on whether the creator sold the item directly to customers or if the item was sold on the Roblox marketplace or by another party.

This is undoubtedly a large fee, but the creators get something in return. Horizon worldsFor example, it offers standalone collaborative building tools, audience reach, and handles all the hosting and networking costs associated with the things creators build. Whether that equals 47.5% of what someone manages to sell on the platform will be up to the creator.

The Horizon worlds The fee structure contrasts sharply with the ideas Meta CEO Mark Zuckerberg shared about metaverse theory at Connect 2021:

The past few years have been humble for me and our company in many ways. One of the main lessons I learned is that building products is not enough. We also need to help build ecosystems so that millions of people can have a stake in the future, be rewarded for their work, and benefit as the tide rises, not just as consumers but as creators and developers.

But this period was also modest because the company is as big as us, we also learned what it’s like to build other platforms. Living under their rules has profoundly shaped my views of the tech industry. Most of all, I’ve come to believe that a lack of choice and high fees stifle innovation, prevent people from building new things, and hold back the entire Internet economy.

We have tried a different approach. We want to serve as many people as possible, which means working to make our services less expensive, not more. Our mobile applications are free. Our advertising business model is an auction that guarantees each company the most competitive rates possible. We offer our tools to creators and commerce either at cost or at a modest fee to enable as much creativity and commerce as possible.

Meta also explained a few more things about how to use the selling tools Horizon worlds will work. Talking to The road to virtual realitythe company said that the purchases from the point of view of the buyer Horizon worlds It’s treated like anything else on the Quest platform (ie: they use your headset account and payment credentials on file to handle the transaction). This means that items will be declared and handled in the local currency, rather than a owned application currency.

Regarding the portability of purchased items Horizon worldsMeta says that anything purchased can currently only be used in the world in which it was purchased. So if you buy a hat in one world, you can only access it when you are inside that specific world.

The image provided by Meta also gives us some hints about the mutability of the things you buy Horizon worlds, with the fine print of the transaction pop-up warning that items are “subject to changes by creator even after purchase”. The pop-up also indicates a set of “worldwide user purchase terms”, of which we’ve asked the company for a full copy.

Meta says it plans to collect feedback about Horizon worlds Selling tools and item ownership structure, and offer development over time. Currently, only select creators have access to the selling tools, but the company expects to expand access over time.

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