Steam Revenue Agreement: Understanding the Terms and Conditions
If you`re a video game developer, the Steam platform is probably no stranger to you. Steam is one of the most popular digital distribution platforms for PC games, boasting a massive user base of over 120 million active users. With such a vast audience, it`s no surprise that developers flock to Steam to distribute their games.
However, before you can begin selling your game on Steam, you`ll need to agree to the Steam Subscriber Agreement. This agreement spells out the terms and conditions that you, as a game developer, must adhere to in order to sell your game on the platform. One of the most critical parts of this agreement is the Steam Revenue Agreement.
So, what exactly is the Steam Revenue Agreement, and what does it mean for you as a developer? In this article, we`ll break down the terms and conditions of the Steam Revenue Agreement, so you know exactly what you`re getting into.
Revenue Sharing
The Steam Revenue Agreement outlines the revenue sharing terms between you as a developer and Steam as a platform. The standard revenue share split on Steam is 70% for the developer and 30% for Steam. This means that for every sale your game makes on Steam, you`ll receive 70% of the revenue, and Steam will take a 30% cut.
However, the revenue share split is not a one-size-fits-all arrangement. Depending on your game`s performance, you may be eligible for a different revenue share split. For example, if your game generates over $10 million in sales, your revenue share split will change to 75% for the developer and 25% for Steam.
Payment Terms
The Steam Revenue Agreement also outlines payment terms for developers. Steam pays developers on a monthly basis, with payments typically made within 30 days of the end of the month. For example, if you earn revenue in January, you can expect to receive payment for that revenue by the end of February.
It`s important to note that there is a minimum payment threshold of $100. If your revenue doesn`t meet this threshold in a given month, Steam will roll that revenue over to the next month. Once your revenue surpasses $100, you`ll receive payment for that revenue in the next payment cycle.
Taxes
The Steam Revenue Agreement also addresses tax obligations for developers. If you`re a developer based in the United States, you`ll need to provide Steam with a W-9 form. If you`re based outside the United States, you`ll need to provide Steam with a W-8BEN form.
It`s important to note that you are responsible for any taxes owed on revenue earned from your game on Steam. Steam will provide you with a detailed revenue report, which you can use to calculate your tax obligations.
Conclusion
The Steam Revenue Agreement is an essential component of selling your game on the Steam platform. By understanding the terms and conditions outlined in the agreement, you can ensure that you`re getting the most out of your revenue share split, and you`re adhering to Steam`s payment and tax obligations. As a developer, it`s crucial to carefully review the Steam Revenue Agreement before agreeing to it, so you know exactly what you`re getting into.