There are two options for how CollabPay handles calculation of revenue share. You can update your revenue share calculation settings at anytime.
- Login to CollabPay
- Go to “Settings”
- Click on “Account”
- Select required revenue share calculation option
- Click “Save”
1. Calculate revenue share from gross sales
Revenue share is calculated directly from order sale price.
For example, a product is sold for $100 and the collaborator earns 10%, then $10 will be added to the collaborator’s payout.
2. Calculate revenue share from profit
Revenue share is calculated by deducting cost of goods from the order sale price. Ensure your products have costs assigned to them.
For example, a product is sold for $200. The cost of the product is $50, so the profit is $200 – $50 = $150. The collaborator earns 20% of the $150 profit, therefore $30 will be added to the collaborator’s payout.
*Note – this does not apply to collaborators using a flat fee.