Google Apps Marketplace Sales Commissions on the Horizon

Google in the coming months will begin taking a cut from sales on its Apps Marketplace, where external developers currently pocket all revenue from sales of their applications.

By Juan Carlos Perez
Fri, September 17, 2010

IDG News Service — Google (GOOG) in the coming months will begin taking a cut from sales on its Apps Marketplace, where external developers currently pocket all revenue from sales of their applications.

Google, which launched the Apps Marketplace about six months ago, has said all along that it intends to charge developers a 20 percent commission. However, the billing API (application programming interface) required isn't yet ready.

Google plans to release the API, which is based on the Google Checkout e-payment system, to U.S. developers in the last quarter of this year, and afterwards start to roll it out abroad, the company said Thursday, in its latest update about this topic.

Developers will have to start paying commissions three months after Google releases the API in the country where they are based, the company said.

In addition to being an e-store, the Marketplace is a technology platform designed to let developers integrate their applications in various ways with the Google Apps suite.

For example, Marketplace applications can be integrated with Google Apps to share a single sign-on and common user interface navigation, as well as to exchange and synchronize data.

In that way, the Marketplace has been conceived as a store that contains complementary, cloud-hosted applications and tools that have been pre-integrated with Google Apps.

The roughly 200 applications currently available in the Marketplace include CRM (customer relationship management), accounting and project management software.

Google has high ambitions for the Marketplace, which it hopes will eventually house what Google considers all the best cloud-based applications for businesses.

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