Marketplace Revenue Share Updates

Reading Time: 5 minutes On April 1, 2022, new Marketplace Revenue Share amounts will take effect, increasing the share of revenue retained by publishers of server apps. In addition, the 95% promotional rate applied to apps in their first year on the Marketplace will be adjusted to apply only to new apps built on Forge. […]

Reading Time: 5 minutes

On April 1, 2022, new Marketplace Revenue Share amounts will take effect, increasing the share of revenue retained by publishers of server apps. In addition, the 95% promotional rate applied to apps in their first year on the Marketplace will be adjusted to apply only to new apps built on Forge.

Boosting revenue for publishers of server apps is one small part of a longer-term strategy to help Partners build successful cloud businesses and serve our shared customers. Our goal is to support reinvestment in cloud and create consistency and predictability in the Marketplace over the coming years.

App type Revenue share through March 31, 2022 Revenue share after April 1, 2022
Server 70% 75%
Data Center 75% 75%
Cloud 85% 85%
New Atlassian-hosted Forge apps in their 1st year on the Marketplace 95% 95%
New Connect apps in their 1st year on the Marketplace 95% 85%

We’re also notifying Partners about ELA Marketplace credits, which are an option for customers with Enterprise License Agreements. Although ELA contracts are rare, the Revenue Share percentages for apps purchased using ELA Marketplace Credits differ slightly from the standard rates.

We’ll cover theses changes in-depth in this blog post. For easier navigation, jump to one of the sections below for full details:

Revenue Share will be adjusted to 75% for server; cloud and Data Center will stay the same

On April 1, 2022, the Marketplace Revenue Share percentage for publishers of Paid-via-Atlassian server apps will be adjusted from 70% to 75%, increasing the total percentage by 5 percentage points. Revenue Share amounts for cloud and Data Center apps will remain the unchanged through March 2024, in accordance with the Marketplace Partner Agreement. This means Atlassian will pay app publishers the following percentages of gross revenue earned by their apps:

  • 85% for cloud apps (unchanged)
  • 75% for Data Center apps (unchanged)
  • 75% for server apps (+5% change)

The 95% financial incentive for new cloud apps in their first year will be adjusted to include only new Forge apps

The special 95% financial incentive, which previously applied to all new cloud apps, will be adjusted from April 1, 2022 onward to apply only to new cloud apps built on Forge. Under this incentive, new Atlassian-hosted Forge apps published on the Marketplace will receive 95% of gross revenue earned during the first year on the Marketplace. This promotion excludes new apps built on Connect as well as former Connect apps that are rebuilt as Forge apps or modified to adopt Forge capabilities.

Revenue Share amounts for ELA Marketplace Credits

Enterprise License Agreements (ELAs) are 3-year contracts for some of our largest customers. Payment for Marketplace Credits up front means these customers can transact in a single bill, yet continue to license new apps over the duration of their contract. Although these contracts are rare, we want to make sure that Partners are aware of these deals because Revenue Share amounts differ from the standard rates.

Revenue share amounts for these contracts will be as follows, regardless of app deployment type or tenure on the Marketplace:

  • 85% for any app purchased as part of a ‘Cloud and Data Center’ Enterprise License Agreement (definition: ELA includes at least one cloud instance)
  • 75% for any app purchased as part of a ‘Data Center’ Enterprise License Agreement (definition: ELA does not include any cloud instances)

You can read more about ELAs in the Partner Portal.

Key Dates

  • October 11, 2021: Notification of updates to Marketplace Revenue Share amounts.
  • March 31, 2022: Last day to submit a new Connect app and receive the 95% incentive.
  • April 1, 2022: New Revenue Share amounts take effect, including changes to the 95% incentive for new apps.
  • March 31, 2023: End date for 95% financial incentive for new Forge apps.
  • March 31, 2024: New standard rates for cloud, DC, and server are effective through this date.

Getting help

Although standard revenue share percentages are continuing unchanged for existing cloud and Data center apps, and increasing Partner revenue for server, we want to provide Partners with plenty of time to forecast and plan for the future. In the 6 months between now and when changes go into effect, we’re here to provide detailed information and answer questions about what the new Revenue Share amounts mean for you. If your question isn’t included in the FAQs below, please get in touch with your Partner Manager or post your question in the Developer Community.

Frequently Asked Questions

Q: Is the 95% financial incentive for new Forge apps effective through March 31, 2024?

A: The 95% financial incentive for new Forge apps is a temporary incentive that will be in place until March 31, 2023. The following rates are effective through March 31, 2024: 85% for cloud apps; 75% for Data Center apps; 75% for server apps.

Q: After a new Forge app’s first year on the Marketplace, what Revenue Share amount will apply?

A: During a new Forge app’s first year, the app publisher will take home 95% of revenue. After the first year ends, the standard rate for cloud apps will apply (85%).

Q: Are Connect apps that adopt the Forge platform (aka Connect on Forge) eligible for the 95% financial incentive?

A: The 95% financial incentive applies only to completely new Forge apps. Forge versions of apps that have been previously published as Connect apps are not eligible.

Q: If I build a new Forge app that uses remote storage or compute outside of the Atlassian cloud, will the app be eligible for the 95% incentive?

A: No, the 95% incentive applies only to new Forge apps that use Atlassian-hosted data storage and compute.

Q: If I publish a new Connect app between now and March 31, 2022, will it be eligible for the 95% financial incentive?

A: Yes, Connect apps published before April 1, 2022 will be eligible for the 95% financial incentive.

Q: If I submitted my Connect app on March 31, 2022, but it doesn’t get published until after April 1, 2022, will it be eligible for the 95% financial incentive?

A: To receive the 95% financial incentive, Connect apps must be submitted on or before March 31, 2022 and published no later than 30 days after submission.

Q: Is it possible for the adjustment to server app Revenue Share amounts to go into effect before April 1, 2022?

A: Due to changes being made to support the Atlassian purchasing system roadmap, April 1, 2022 is the soonest that server app revenue share amounts can be adjusted. This timeline aligns to previously communicated end dates for Revenue Share amounts.

Q: What are Atlassian’s plans for revenue share beyond March 31, 2024?

A: Atlassian continuously evaluates our revenue share structure based on Partner profitability and alignment to Atlassian’s company objectives. Our commitment to our Partners is to create better visibility to future changes by announcing them at least 6 months in advance.

Q: What is an Enterprise License Agreement (ELA)?

A: An Enterprise License Agreement (ELA) is a contractual vehicle that provides our largest customers with the flexibility & predictability that they need to standardize their strategy and investment with Atlassian. For more details on ELAs, see the Partner Portal.

Q: When will I start to see apps purchased with ELA Marketplace credits?

A: Although Marketplace credits are an option for ELA customers today, it’s difficult to estimate when Partners will begin to see ELA credits on remittance reports. This is because Enterprise deals tend to have long sales cycles and time typically elapses between the date a deal closes and when the credits are actually redeemed.

Q: How common are ELA contracts that include Marketplace Credits?

A: ELA contracts represent a small percentage of the customers transacting in the Marketplace. We expect there to be up to 15 of these contracts during the next year.

Q: What is the Revenue Share amount for apps in their first year, if purchased using Marketplace Credits from an Enterprise License Agreement?

A: The following rates are applied to all apps; this includes new apps that would normally benefit from the 95% rate.
Cloud and Data Center ELA (includes at least one cloud instance): 85%
Data Center ELA (does not include any cloud instances): 75%

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Source: Atlassian