Creating and publishing the private offer does not mean the deal is complete. In a marketplace transaction, there is often a gap between the customer agreeing to buy and the purchase actually going through.
That creates two distinct milestones to track:
The commercial close happens when the customer agrees to the deal, pricing and terms are finalized, and procurement signs off.
The marketplace close happens when the transaction is completed through Microsoft Marketplace. The offer is published, the customer accepts it, the Purchase option becomes available in Azure, and the subscription goes active.
The gap between these two milestones can be significant:
- Publication: typically up to 15 minutes after submission
- Acceptance: depends on when the customer acts
- Purchase option enabled: typically 15 to 60 minutes after acceptance
- Purchase: depends on when the customer or finance team completes the transaction
This is why an offer marked “accepted” should not automatically be treated as closed revenue. Until the customer completes the purchase, the transaction is still pending.
For teams managing marketplace deals at scale, both milestones need to be visible in the pipeline. Sales may track the commercial close, but marketplace operations and forecasting should also account for whether the purchase has actually been completed.
Renewals
Microsoft Marketplace private offers don’t auto-renew. Each offer has a defined end date, and continuing the customer at the negotiated price requires a new private offer created and accepted before the current one expires.
Microsoft applies a 50% discount to the standard marketplace transaction fee on qualifying renewals. To get the reduced fee, self-attest to the renewal status during private offer creation in Partner Center. Renewals include:
- Renewal of a current private offer
- Renewal of a paid offer being migrated to the marketplace
- Upsell to an existing paid customer
The discount applies for the entire term of the renewal offer, not just the first year. Offers created before October 1, 2024 aren’t eligible.
Subscription renewal is a separate setting. For SaaS, publishers choose how the underlying subscription renews when the current contract term ends:
- Renew into private offer: While the private offer is active, the subscription continues at private offer terms
- Renew into public offer: The subscription renews to the selected public plan at the end of the current term
A public offer renewal term must be selected either way, as the fallback if the private offer is no longer active. Auto-renew is off by default; the customer chooses whether to enable it at purchase.
At scale, renewals become their own operational problem. Every customer needs a new offer created before their existing one expires, tracked in Partner Center or wherever else the ISV holds subscription data. Miss the window and the subscription either lapses or falls back to public pricing.