Marketplace Fees Reduced, More Margin For CSPs
For partners that use Microsoft’s commercial marketplaces, the company announced that it has reduced agency fees on the marketplaces from 20 percent to 3 percent. That fee reduction covers all transactable applications published to the commercial marketplaces, which include AppSource and Azure Marketplace.
A 20 percent fee for marketplace transactions is the industry standard, said Nick Parker, Microsoft’s corporate vice president of global partner solutions, in a blog post.
“The reduction means higher margins for partners who publish transactable offers in our marketplaces and simplifies the fee structure,” Parker wrote in the post. “Both of these benefits reflect our commitment to do everything we can to make our platform partner-focused.”
Microsoft reports that there has been a 70 percent increase in transactable applications on its commercial marketplaces, year over year, Parker said.
Meanwhile, in an effort to encourage ISVs to share margin with resellers and make selling commercial marketplace offers more profitable for partners, Microsoft plans to allow app publishers to set one price for customers and another price for preferred CSP partners. The change is planned to debut in the fall.
This will provide partners with margin upfront and allow partners to mark up prices when reselling to customers outside of the commercial marketplace, according to Microsoft. Publishers can develop their partner channel in the CSP program and compensate partners for new sales, Microsoft said. Solution providers can work with publishers they already partner with or form new relationships, the company noted.