Meta Plans to Take Nearly 50% of Creator&039s Earnings in Horizon Worlds

This week meta announced that it was starting to test sales tools so creators can sell things within the horizon worlds and earn real money. now the company has provided more details on how it will work, including the fees creators will pay for earnings made through the platform.

meta says that the goal of its various metaverse initiatives is to one day allow people to “earn a living” by creating virtual goods through its platforms. but for creators to make that happen, they will have to deal with hefty fees from the company.

Reading: Plans to take creator earnings horizon

Speaking to road to vr about the new sales tools that are available to select creators in horizon worlds, meta explained that anything sold in horizon worlds would be subject to the same 30% fee the company charges creators. developers who sell apps through their 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, then the meta quest store fee would be $0.30 and the horizontal platform fee would be $0.17, leaving $0.53 for the creator before applicable taxes.”

That’s an effective rate of 47.5% of everything sold from horizon worlds to the metagame, leaving 52.5% to the creator.

Image courtesy Meta

See also: Alphabet

That’s a pretty hefty take, but not entirely out of line with contemporaries. Roblox, for instance, takes between 30% and 70% of the revenue generated by creators depending upon whether the creator sold the item directly to customers or if the item was sold on the Roblox marketplace or by another party.

These are steep fees, to be sure, but creators get something in return. horizon worlds, for example, offers its self-contained collaborative building tools, access to an audience, and handles all the hosting and networking costs associated with things creators build. whether that is worth 47.5% of what someone manages to sell on the platform will depend on the creator.

horizon worlds’ fee structure contrasts sharply with the thoughts meta CEO mark zuckerberg shared about a theoretical metaverse at connect 2021:

The past few years have been humbling 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, can be rewarded for their work, and benefit as the tide rises, not only as consumers but also as creators and developers.

But this period has also been humbling because as great as we are as a company, we’ve also learned what it’s like to build for other platforms. and living by its rules has profoundly shaped my views on the tech industry. Above all, I’ve come to believe that a lack of choice and high fees are stifling innovation, stopping people from building new things, and holding back the entire internet economy.

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We have tried to take a different approach. we want to serve as many people as possible, which means working to make our services cost less, not more. our mobile applications are free. Our ad business model is an auction, which guarantees each company the most competitive price possible. We offer our creator and trading tools either at cost or modest fees to enable as much creation and trading as possible.

meta also clarified a few other things about how the selling tools will work on the horizon worlds. speaking with road to vr, the company said that from a buyer’s point of view, purchases in horizon worlds are handled like anything else on the search platform (i.e. they use the headset’s account and login credentials). payment records to handle the transaction). that means items will be listed and traded in the local currency, rather than a proprietary application currency.

Regarding the portability of items purchased in horizon worlds, meta says that anything currently purchased can only be used in the world it was purchased in. so if you buy a hat in a world, you will only have access to it when you are inside that specific world.

A photo provided by meta also gives us some hints about the mutability of the things you buy in horizon worlds, with the fine print in the transaction pop-up warning that items are “subject to change by the creator even after shopping”. ” The pop-up also mentions a set of “user world purchase terms”, of which we have asked the company for a full copy.

meta says it plans to collect feedback on the worlds horizon selling tools and item ownership structure, and evolve the offering over time. Currently, only select creators have access to the sales tools, but the company hopes to expand access over time.

See also: The 500mm Debacle at Zillow Offers – What Went Wrong with the AI Models? – insideBIGDATA

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