Seeing a lot of incorrect math in the comments. Cash Out gives 0.0035$ per Robux. This is a rate of 1.4$ per 400 Robux.
So for 4.99$ spent by the customer in UGC the developer receives 0.42$ which is 8.4% of the purchase after conversion. This is the worst possible rate on the lowest and worst converting purchase. At the top end this rate changes to 22,500 Robux for 99.99$ which gives 23.63$ which is 23.6% of the purchase after conversion. UGC developers get access to the entire global audience of Roblox and make an insane amount of money through quantity sales. Their conversion is largely irrelevant in face of 214,000,000 monthly active users. In this case it has everything to do with throughput. I know this because Shaye our artist is a UGC developer and makes bank doing it.
For 4.99$ spent by the customer in private worlds the developer receives 0.98$ which is 19.6% of the purchase after conversion. Again, this is the lowest purchase point and worst possible conversion. 22,500 Robux at 99.99$ gives 55.12$ which is a 55% conversion rate. Again, this conversion is largely irrelevant as it's about throughput in the face of a massive audience.
We see the same thing on other platforms. Why? Because of payment processing fees.
Twitch gives 50/50 cuts on T1 subs that are actually 40% or lower depending on the processing fees for a given transaction. Depending on regional pricing and fees it can reach as low as 5.6%.
YouTube gives 55% of AdRev, has additional processing fees, and is a black box on where that revenue comes from meaning you cannot verify the intended amount.
In Roblox case that processing has no variance and is always exactly the same. They also don't take any extra fees when you transfer the USD from the game to your bank. The business model is normal. Cut to the platform and then an extra cut during processing.
Is Roblox making a lot off this? Yes. Are developers and individual UGC creators as well? Yes. UGC creators having absolutely life changing income off of this system through nearly fully passive means is a lot more common than you would think. For game developers you have a massive captive audience and all of your networking model is handled for you. If we want to debate about if this is "fair" to the creators then you should be talking to those creators not forming arguments on their behalf.
Further to join the UGC program you must be 15 years or older and be approved through a manual review process which includes parental approval due to the NDA. There is no quota of work to stay in the program so creators just make whatever whenever they want. To put this into perspective Valves minimum is 13 years old to monetize a game on Steam. That 13 year old limit is the same on Roblox for Cashing out Robux to USD. This is just another platform where creators can generate revenue from their creations.
How do I know all this? Because it's my job to. I create content on Twitch and YouTube and I run all of my decisions based on analytics. Shaye is a Roblox UGC creator and has to do the same in that environment. None of this is hearsay or third party information. This is how we make a living and we're deeply aware of the systems and how they work. If these systems weren't beneficial to creators we wouldn't be creating using them as it would be a waste of time and resources.
If we want to fix something in Roblox then go after things that are actually hurting the users such as Moderation failures and individuals on the platform ripping off younger workers by not paying them appropriately. In that way real issues can be fixed while things that aren't actively hurting creators don't muddy the waters.
i don't think this is the main reason people criticize the Roblox business model. i think they criticize it because it relies on many thousands of children being taken advantage of & ripped off
So, Roblox mainly has a large issue with unregulated child labor and discord communities full of predators. I personally love the development access for kids in roblox but with poor oversight it's ripe with abuse
Or maybe hate roblox for the rampant child labour being used to profit by small companies that are using children as cheap coders and item creators only to take a majority of the profit for themselves?
Something that Roblox not only allows but actively tries to suppress any exposure of this
I agree with him. Roblox is no saint they definitely have their issues (especially with moderation)
However most people complaining about getting paid in robux or the exploitation of children fail to consider a lot of factors:
Roblox provides you with hundreds of game services completely for free.
They have studio which is significantly easier to use than any other game engine and you can still make some REALLY high quality games.
Roblox also provides you with a platform and free of charge servers hosting and multiplayer service that for any normal game dev would cost significantly a lot more.
They also provide a marketplace and easy integration of purchasing gamepasses (consider them Roblox equivalent of DLC) for game devs.
While it is paid with in-game currency that you need to buy roblox also provides you with effective advertising for your game (Those ads do actually work im speaking from experience)
Roblox is great for aspiring game developers (Generally children between the ages of 12-17) to start out and get ahold of how things work, how to make games and even make a little money on the side. The platform (despite what it is) was never intended for long term financial gain for people, it shouldn't be your job bur rather a hobby or experimentation for game development. So people should use it as a way to start before moving onto actual game engines such as unreal to create games.
Because its obviously not gonna work out if you use Roblox as a long term source of income. While yes the platform has essentially morphed its way into a "Oh comes make games for us game developers" thing it was originally intended as a platform for aspirin game devs to learn some game development while making pocket money on the side.
Do people really complain about Roblox's business model? I've only really seen them complain about moderation, copyright infringement, and how their system pretty much encourages some form of child labour with a lot of loopholes.
My issue is moreso what the purchasable items are the vast majority of the time. I dont care how good the conversion rates are, its all scummy microtransactions with psychological game design targeted at young kids. Its abhorrent.
Roblox main customers are kids under the age of 12. There's no business model around that age group that you can make morally sound. I don't care what type of mental hoops you need.
This business model would work if the conversion rates weren’t so garbage and limiting… If you make a roblox game. You’re never getting the money back.
I think a big key difference with Roblox is the predator problems. Ruben Slim is exposing a lot of inner company problems and they haven't taken any action against the claims other than to SUE Ruben.
Doesn't Roblox basically operate a pay to advertise business model for app developers to spend money to promote their app to the front page just to get user traffic? I thought I saw that in a documentary recently.
Seeing a lot of incorrect math in the comments. Cash Out gives 0.0035$ per Robux. This is a rate of 1.4$ per 400 Robux.
So for 4.99$ spent by the customer in UGC the developer receives 0.42$ which is 8.4% of the purchase after conversion. This is the worst possible rate on the lowest and worst converting purchase. At the top end this rate changes to 22,500 Robux for 99.99$ which gives 23.63$ which is 23.6% of the purchase after conversion. UGC developers get access to the entire global audience of Roblox and make an insane amount of money through quantity sales. Their conversion is largely irrelevant in face of 214,000,000 monthly active users. In this case it has everything to do with throughput. I know this because Shaye our artist is a UGC developer and makes bank doing it.
For 4.99$ spent by the customer in private worlds the developer receives 0.98$ which is 19.6% of the purchase after conversion. Again, this is the lowest purchase point and worst possible conversion. 22,500 Robux at 99.99$ gives 55.12$ which is a 55% conversion rate. Again, this conversion is largely irrelevant as it's about throughput in the face of a massive audience.
We see the same thing on other platforms. Why?
Because of payment processing fees.
Twitch gives 50/50 cuts on T1 subs that are actually 40% or lower depending on the processing fees for a given transaction. Depending on regional pricing and fees it can reach as low as 5.6%.
YouTube gives 55% of AdRev, has additional processing fees, and is a black box on where that revenue comes from meaning you cannot verify the intended amount.
In Roblox case that processing has no variance and is always exactly the same. They also don't take any extra fees when you transfer the USD from the game to your bank. The business model is normal. Cut to the platform and then an extra cut during processing.
Is Roblox making a lot off this? Yes. Are developers and individual UGC creators as well? Yes. UGC creators having absolutely life changing income off of this system through nearly fully passive means is a lot more common than you would think. For game developers you have a massive captive audience and all of your networking model is handled for you. If we want to debate about if this is "fair" to the creators then you should be talking to those creators not forming arguments on their behalf.
Further to join the UGC program you must be 15 years or older and be approved through a manual review process which includes parental approval due to the NDA. There is no quota of work to stay in the program so creators just make whatever whenever they want. To put this into perspective Valves minimum is 13 years old to monetize a game on Steam. That 13 year old limit is the same on Roblox for Cashing out Robux to USD. This is just another platform where creators can generate revenue from their creations.
How do I know all this? Because it's my job to. I create content on Twitch and YouTube and I run all of my decisions based on analytics. Shaye is a Roblox UGC creator and has to do the same in that environment. None of this is hearsay or third party information. This is how we make a living and we're deeply aware of the systems and how they work. If these systems weren't beneficial to creators we wouldn't be creating using them as it would be a waste of time and resources.
If we want to fix something in Roblox then go after things that are actually hurting the users such as Moderation failures and individuals on the platform ripping off younger workers by not paying them appropriately. In that way real issues can be fixed while things that aren't actively hurting creators don't muddy the waters.
Ok but I think the way you have to cash out money on roblox is the problem
the issue is not the split, it's the payouts and the fact that kids don't realize this stuff when they create for Roblox
i don't think this is the main reason people criticize the Roblox business model. i think they criticize it because it relies on many thousands of children being taken advantage of & ripped off
This take is just… fucking bad. The amount of money that Roblox takes isn't the problem, it's the shadiness of how they go about it.
So, Roblox mainly has a large issue with unregulated child labor and discord communities full of predators. I personally love the development access for kids in roblox but with poor oversight it's ripe with abuse
Or maybe hate roblox for the rampant child labour being used to profit by small companies that are using children as cheap coders and item creators only to take a majority of the profit for themselves?
Something that Roblox not only allows but actively tries to suppress any exposure of this
I'm gonna hate roblox for encouraging dating for minors
I still dont understand but i was never angry from the start
Love to hear you talking about Warframe and Tennogen I love that game and i need to buy a tennogen skin or two at some point
Because roblox rots children's minds and most of their servers are full of pedophiles
I agree with him.
Roblox is no saint they definitely have their issues (especially with moderation)
However most people complaining about getting paid in robux or the exploitation of children fail to consider a lot of factors:
Roblox provides you with hundreds of game services completely for free.
They have studio which is significantly easier to use than any other game engine and you can still make some REALLY high quality games.
Roblox also provides you with a platform and free of charge servers hosting and multiplayer service that for any normal game dev would cost significantly a lot more.
They also provide a marketplace and easy integration of purchasing gamepasses (consider them Roblox equivalent of DLC) for game devs.
While it is paid with in-game currency that you need to buy roblox also provides you with effective advertising for your game (Those ads do actually work im speaking from experience)
Roblox is great for aspiring game developers (Generally children between the ages of 12-17) to start out and get ahold of how things work, how to make games and even make a little money on the side. The platform (despite what it is) was never intended for long term financial gain for people, it shouldn't be your job bur rather a hobby or experimentation for game development. So people should use it as a way to start before moving onto actual game engines such as unreal to create games.
Because its obviously not gonna work out if you use Roblox as a long term source of income. While yes the platform has essentially morphed its way into a "Oh comes make games for us game developers" thing it was originally intended as a platform for aspirin game devs to learn some game development while making pocket money on the side.
Only L take on this channel. Dude doesn't know what he's talking about
Do people really complain about Roblox's business model? I've only really seen them complain about moderation, copyright infringement, and how their system pretty much encourages some form of child labour with a lot of loopholes.
My issue is moreso what the purchasable items are the vast majority of the time. I dont care how good the conversion rates are, its all scummy microtransactions with psychological game design targeted at young kids. Its abhorrent.
Roblox main customers are kids under the age of 12. There's no business model around that age group that you can make morally sound. I don't care what type of mental hoops you need.
This business model would work if the conversion rates weren’t so garbage and limiting… If you make a roblox game. You’re never getting the money back.
I love me some tennogen
They're kids being paid in money that isn't even real.
I think a big key difference with Roblox is the predator problems. Ruben Slim is exposing a lot of inner company problems and they haven't taken any action against the claims other than to SUE Ruben.
I thought people hated the players not the game.
No one likes Steam for taking 30% of the dev money
I never disliked the Roblox model, but i was ignorant about how they actually operated. Thanks
A rare Thor L.
It's only 30% in theory. They pay you in scrip with like a 10% conversion rate, so it's ACTUALLY closer to 3%.
Terrible take.
Doesn't Roblox basically operate a pay to advertise business model for app developers to spend money to promote their app to the front page just to get user traffic? I thought I saw that in a documentary recently.
I didn't even know Roblox paid anyone before now.
But I sure was livid at their business model anyways.