Eric Schmidt, former CEO of Google says:

Meta plans to take nearly 50% of the revenue generated by creators in Horizon Worlds,
Her virtual reality platform as part of her project to create the metaverse

After announcing earlier this week that creators can sell digital items in Horizon Worlds for real money, Meta has provided details about the fees creators will have to pay on revenue generated through the platform. In an exchange with a magazine that specializes in virtual reality, Meta explained that anything sold in Horizon Worlds will be subject to the same 30% fee the company charges developers who sell apps through its VR platform, then an additional 30%.25% fee on remaining amount.

Mark Zuckerberg, CEO of Meta, wants to make it easier for people to spend and earn on the virtual reality platform Horizon Worlds, which is part of Meta’s plan to create a so-called metaverse. In a video posted on Monday, the tech billionaire said that Meta is testing new tools that allow creators to sell virtual assets and experiences in the worlds they build on Horizon.

Mita said:

As part of our ongoing commitment to supporting creators, we’ve begun testing several new tools that will allow creators to experiment with different ways to monetize what they’re building in Horizon Worlds. As we’re launching it today as a quiz with a handful of creators for their feedback, these types of tools are steps toward our long-term vision of Metafire where creators can earn a living and people can purchase digital goods, services, and tools as their experience.

The metaverse, by its very nature, because it is not limited to physical space, will bring a new level of creativity and open new opportunities for the next generation of creators and companies to pursue their passion and create livelihoods. Creators and entrepreneurs will have more freedom to find a business model that works for them. So we’re excited to take this step today and expand the $10 million Horizon Creators Fund we announced last October, which we’re using to provide resources to Horizon Worlds creators. We will continue to work with our community of creators, test and learn

We’re starting a test run with a handful of creators where they can sell virtual items and effects in their worlds. For example, someone could make and sell removable accessories to the fashion world or provide paid access to a new part of the world.

Purchase of items in Horizon Worlds is available to persons 18 years of age or older in the United States and Canada, where Horizon Worlds is currently available. Craftsmen selling items will see a Commerce tab and a widget when they are in craft mode, allowing them to craft purchasable items.

In addition to offering in-world purchases, we’ve begun testing the Horizon Worlds Creator Bonus program for US participants.

These rewards come in the form of monthly goal-based programs where creators are paid at the end of the month for their progress toward the goal. Creator rewards are free of charge and will be paid in full to creators. Currently, in this limited test, creators will be rewarded for building worlds that attract the most time, but over time we may develop these goals, for example, to encourage creators to adopt new tools or features that we publish.

Creators who participate in monetization programs, including in-world purchases and creator rewards, are required to follow all of our Horizon Worlds policies, including the Virtual Reality Conduct Policy and the Prohibited Content Policy. Horizon Worlds, in order to be eligible for winnings. As with all content in Horizon Worlds, if you see anything that appears to violate our policies, you can submit a report for us to review. .

Details of fees collected by Meta

Of course, Meta will take a portion of what the creators sell. For Horizon purchases, Meta gets a commission of 25% of the remaining percentage after creators pay the platform fee. For platforms that charge 30%, like the Meta Store for VR titles, the creator will end up with more than half the sale price (since Meta gets 30% and 25% of 70%).

The company provided the following example:

…if a creator sells an item for $1.00, the Meta Quest store fee will be $0.30, and the Horizon platform fee will be $0.17, leaving $0.53 for the creator before any applicable tax.

That’s an effective rate of 47.5% of everything sold on the Horizon Worlds Meta, leaving 52.5% for the creator.

It’s a fairly heavy restraint, but it’s not entirely out of place with contemporaries. Roblox, for example, takes between 30% and 70% of the revenue that creators generate depending on whether the creator sold the item directly to customers or whether the item was sold on the Roblox marketplace or by another party.

These are undoubtedly significant costs, but the creators get something in return. Horizon Worlds, for example, offers standalone collaborative building tools, audience reach, and manages all of the hosting and networking costs associated with the things creators build. Whether it’s worth 47.5% of what someone manages to sell on the platform depends on the creator.

Meta also explained a few more things about how selling tools work in Horizon Worlds. From a buyer’s perspective, the company said, purchases in Horizon Worlds are treated like anything else on the Quest platform (that is, it uses the headset account and stored payment information to manage the transaction). This means that items will be declared and processed in the local currency, rather than the app’s proprietary currency.

Regarding the portability of purchased items in Horizon Worlds, the Meta states that anything purchased can currently only be used in the world in which it was purchased. So if you buy a hat in a world, you can only access it when you are in that specific world.

The image provided by Meta also gives us some clues about the changing nature of the things you buy in Horizon Worlds, with a small print in the transaction popup warning that items are subject to change by the creator even after purchase. The pop-up also mentions a set of purchase terms for users around the world.

What is Horizon Worlds?

Horizon Worlds (formerly Facebook Horizon) is a free online virtual reality video game that allows people to build and explore virtual worlds.

Meta released the game for Oculus VR headsets in the US and Canada on December 9, but it hasn’t yet been released worldwide.

In recent months, companies and individuals have purchased everything from art to real estate in virtual worlds on platforms like Decentraland and The SandBox. Hip-hop star Snoop Dogg bought virtual land and a fan paid $450,000 in December to buy land next to him in The Sandbox.

Previously, buying and selling digital assets was not possible in Horizon Worlds, but the company knows that there is money to be made in the metaverse. In fact, Citi Bank estimates that a command economy could reach between $8 trillion and $13 trillion by 2030.

In addition to worldwide purchases, some virtual world creators in the US will also be paid directly by Meta for their efforts. “People who build great worlds, we just create funds to help compensate and reward people who are doing a great job here at Horizon,” Zuckerberg said.

The rewards are based on goal-based monthly programs where creators are paid at the end of the month for their progress toward a goal.

Meta said that creators will be rewarded for building worlds that attract the most time spent. The company said it may change the criteria by which creators are ranked and rewarded in the future.

Meta launched the $10 million Horizon Creators Fund last October. It’s not clear how much Meta allocates to paying creators in Horizon Worlds or how much each creator can earn.

“Monetization from creators is really important because you all have to support yourself and make a good living building these great experiences for people,” said Zuckerberg, one of the richest people in the world.

“The exact detailed path that Meta continues to release is still a long way off,” said Matt Navarra, a social media consultant. He added that there are still many question marks about how it is used and how popular it is.

Navarra said enabling metadata tools is a smart move to help launch a kind of creative economy into the metaverse. But for most brands and designers, the metaverse will still be something to watch closely in the short term.

Digital tokens that can be used on the metaverse

According to a report from the Financial Times, the parent company of Facebook and Instagram has a few products in operation, including virtual currency that company employees have apparently taken to calling “Zuck Bucks.”

It is unlikely that Zuck Bucks, which refers to the name of Meta’s founder, Chairman and CEO, Mark Zuckerberg, is a cryptocurrency. Instead, Meta is looking at offering in-app tokens that the company will control centrally, similar to those used in gaming apps like Robux coin in the popular children’s game Roblox, according to the Financial Times. Roblox has built a huge company selling Robux, and Meta may try to emulate some of that success on its own platforms. As another illustration, we can also cite the V-Bucks from Fortnite.

Meta has not completely distanced itself from blockchain products, as the company also plans to publish and share NFTs on Facebook. The Financial Times says the company plans to launch a pilot project to do so in mid-May, according to a note, shortly after which Meta will test membership permission for Facebook groups based on ownership of NFTs and another instrument (creation) of NFTs. The FT previously reported on some of the Meta NFT’s plans for Facebook and Instagram in January, and Zuckerberg announced in March that NFTs would be coming to Instagram.

In addition, Meta is exploring social tokens or reputation tokens, which can be set as rewards for important contributions to Facebook groups, for example, the Financial Times reports. The company also appears to be looking into traditional financial services such as small business loans.

Source: Road to VR, Meta

And you?

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See also:

Meta is said to be creating Zuck Bucks, digital tokens that can be used in metavers. Meta is also preparing to launch in NFTs
Meta begins testing tools to sell digital assets and experiences within its Horizon Worlds virtual reality platform. An essential component of the Metavers . project


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