Understanding Steam’s Revenue Sharing Model for Indie Games
When you publish your indie game on the Steam platform, there are key financial arrangements you must consider, particularly the revenue share with Steam. Here’s a detailed breakdown of what you can expect:
Steam’s Revenue Cut
- Base Commission Rate: Steam typically takes a 30% cut from your game’s sales revenue, which is a standard fee applied to most transactions on the platform.
- Regional Pricing Impact: Adjustments in pricing for different regions do not affect the commission rate but may impact the overall revenue depending on regional sales volume.
- Discounts and Promotions: While participating in Steam sales events or applying discounts can potentially boost sales, they will also influence net revenue as the 30% commission is applied post-discount.
Additional Considerations
- VAT and Taxes: Depending on the region of sale, additional deductions such as VAT (Value Added Tax) may apply, further affecting the net revenue you receive.
- Refund Policy Reserve: Steam reserves approximately 5%-15% to cover potential refunds, which can slightly increase the effective cut from your gross sales.
Practical Example
Let’s say you sell your game for $20. After Steam’s 30% cut, you would receive $14. If there is a 10% VAT applicable, your net revenue would reduce by another $2 (i.e., $1.40) on each sale, resulting in approximately $12.60 per sale before accounting for any reserve for refunds.
Take a step towards victory!
Overall, while the baseline expectation is Steam’s 30% cut, various factors like refunds, taxes, and pricing strategies play a critical role in determining the final revenue you receive from each sale.