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A New Subscription Option from Facebook Will Help Creators Avoid Apple's 30% Cut

A New Subscription Option from Facebook Will Help Creators Avoid Apple’s 30% Cut

Posted on August 21, 2022August 20, 2022 By Shubham Kansal No Comments on A New Subscription Option from Facebook Will Help Creators Avoid Apple’s 30% Cut

Facebook has discovered a method around Apple’s 30% levy on in-app purchases. Creators will soon be able to publish personalized web links that direct their fans to pay them for subscriptions via Facebook’s native payments system, according to Mark Zuckerberg, CEO of Facebook parent company Meta.

The creator will keep every penny after taxes if a fan subscribes via the link rather than Apple’s in-app subscription. The Facebook subscription tool, which enables artists to charge on a recurring basis for access to premium content, is accessible to creators who meet specific eligibility requirements and is available in 27 countries.

A New Subscription Option from Facebook Will Help Creators Avoid Apple's 30% Cut

According to Apple’s App Store policies, Facebook is operating in a murky area; nevertheless, a spokeswoman for the social network claimed that it feels its strategy has always been accepted on iOS. The App Store presently prohibits iOS apps from providing alternative payment methods for buying digital goods.

However, in this situation, the author will be sending consumers to pay for a subscription on the web, not Facebook, the app developer. Facebook’s spokesman insisted that the social network is not doing away with the option for users to sign up for a creator membership using Apple’s built-in payment method.

In a Facebook post, Zuckerberg stated, “As we build for the metaverse, we’re focused on opening opportunities for creators to make money from their work.” We’re changing our Subscription product so that authors can now earn more because it’s harder to do that because Apple gets a 30 percent cut of transaction fees.

A Bonus of $5 to $20 Will Be Paid by Facebook to Creators for Every New Subscriber Added Using Their Custom Web Link

A New Subscription Option from Facebook Will Help Creators Avoid Apple's 30% Cut

Facebook will start paying creators a bonus of between $5 and $20 for every new subscriber they recruit, regardless of whether they pay through the special web link or through Apple and Google’s systems. Facebook will also delay taking a portion of subscription transaction fees until at least 2023.

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Facebook will provide authors with a breakdown of their revenues and fees, including the sums they must pay to Apple and Google, via an earnings calculator. Additionally, starting in December, Facebook publishers will have direct access to the emails of their subscribers.

Facebook is profiting from the weakening of Apple’s control over iOS app payments. Following its high-profile dispute with Epic Games, Apple is now subject to even more limitations. As part of the settlement with developers, Apple recently allowed them to email customers directly about different payment alternatives.

At the conclusion of that case, the judge ruled in favor of Apple and gave the corporation until December 9 to comply with the ruling by allowing developers to link to external payment methods. The judge has not yet made a decision about Apple’s request for a stay while the decision is being appealed.

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