Question about 5% royalties

Hey guys,

i have question about 5% royalties, I’m mobile developer, and i want to release a mobile game on google play store and apple store, my game is free but contains ads (admob etc…), so do i need to pay 5% royalties after reach 3000$ from ads or not? bcs i read only commercial games ( paid games ) need to pay, please explain this :slight_smile:

Thanks.

The answer is yes. You need to pay royalty from “all gross revenue” generated by the product.

Quoted from the FAQ:

If I release a commercial product, what royalties are due to Epic, and when?
Generally, you are obligated to pay to Epic 5% of * all gross revenue * after the first $3,000 per game or application per calendar quarter, regardless of what company collects the revenue. For example, if your product earns $10 from sales on the App Store, the royalty due is $0.50 (5% of $10), even though you would receive roughly $7 from Apple after they deduct their distribution fee of roughly $3 (30% of $10).

Source: Häufig gestellte Fragen - Unreal Engine

Thanks man :slight_smile:

You’re welcome.