Business
Hi all - I'm interested in joining the DevEx program but I'm getting confused with how to reconcile some of the different data points:
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Publicly, Roblox reports that for every Roblox earns, DevEx accounts for 25% of those figures.
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On the other-hand following the money seems to give a different answer:
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Assuming the best-rate for purchasing Roblox (through subscription), the ratio of cash-out rate / cash-in rate is ~35% (cashing-out Robux gives you 35% of what it would have cost to purchase that Robux)
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If I sell something in the Avatar Marketplace, I only earn 30% of the Robux, whereas if I sell in my own world, I earn 70% of the Robux - multiplying these by the 35% cash-out rate / cash-in rate means that depending on where I sell the item I earn 10.5% - 24.5% of the cash that the user first spends.
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Taken together, the amount that developers earn from the program as a share of Roblox revenue should be between the 10.5% - 24.5% (based on the mix between sales in Avatar Marketplace and their own worlds) and then discounted further (since not all creators will actually cash-out). Regardless of what those splits are - developer share of the total revenue entering the system should at the bare minimum be less than 24.5% (and probably significantly lower)
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What am i missing? I'm not seeing how we actually make 25% of the revenue...
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Payout Rates:
T-Shirts, Shirts, Pants: Creators receives 70%
Hats and Accessories: Creator receives 30% (if you sell the hats or accessories within your own experience, it's 70%)
In-game developer products: 70%
Game/experience passes: 70%
This doesn't have anything to do with Bookings vs. Revenue recognition. 24.5% is the correct portion of original Robux purchased (assuming $1.00 = 100 Robux) for everything except hats and accessories (which you have to be a UGC invite-only creator to even be able to do that anyhow).
An example:
User spends $10.00 for 1,000 Robux
User spends 1,000 Robux in your game
You receive 700 Robux
700 * $0.0035 = $2.45 USD (thus 24.5%).
This is wrong, it’s 24.5% from the initial 1000
Their numbers are probably assuming some silly assumptions, such as buying all Robux under a Premium subscription.
You’re correct though. You earn between 10 and 20-ish percent of the revenue you produce, which is much much lower than the industry standard minimum of a 70-ish percent cut.
The 10.5% - 24.5% is already assuming that all Robux is bought under Premium - specifically the ~$20 for 220. I think the discrepancy might actually be related to how Roblox recognizes revenue. They recognize revenue for durables over 23 months (and durables are 90% of the revenue) - so the number they are dividing by is actually deflated (its basically their average revenue over the last two years).
Dividing by bookings gets something under 20% which feels more accurate.
I’d say, most devs earn pocket money and it’s only big game/well known devs who earn a living.
I know Rdite has earned good money even though his games aren’t typically on the most playing page or whatever but I think it’s because of his association with Albert and King Bob that’s helped him (this isn’t a diff at him, I love his work) get millions of visits.
Yeah, exactly. Roblox devs don’t get paid anywhere near what devs outside of Roblox do; they get paid less than a third.
Up to them to decide if a 70-ish percent cut in revenue is worth not having to worry about hosting servers, in the end.
basically Roblox gets most of the money cuz they are greedy end of story
They do make their money, but do remember how much they offer for free. It is a shame to see how little devex and robux earnings have progressed despite the boom in catalogue sales and new users.
They don’t even make money (or profit really). Their costs are amazingly high, and for example of the 100% slice quite a bit goes to Apple and Google (via mobile transactions) as well.