Menu

Revenue Allocation Guide

Revenue Allocation Guide

Making sales through your Thinkific site is exciting, but it's important to understand how that revenue will be allocated among the relevant parties when you're using feature like Affiliates, Payees. To help you out, here's a handy guide you can use to understand how your revenue will be split, making it easier for you to forecast your profits accurately. 


 

Features That Affect Revenue Allocation

All of the following factors and features will affect the way your revenue is allocated when you make a sale:

- Coupon Codes

- Thinkific Fees

- Charitable Donations

- Affiliates

- Payees


How to Calculate Allocation

To make this super easy, you can download the attached spreadsheet to use for your own calculations, but we'll explain how it works below too!

For each sale, the amount you keep can be thought of simply as

Your Earnings = Price - Coupon Discount - Transaction Fee - Charitable Donation - Affiliate Fee - Payee Fees


As a formula, it would look like this (order matters, work left to right!)

Your Earnings = (Price - Coupon Discount) x (1-Charitable Donation %) x (1-Affiliate Fee %) x (1-Payee Fee %) - (Price - Coupon Discount) x (1-Transaction Fee %)


Breaking that down, you can calculate how much each party is allocated like this:

Transaction Fee = (Price - Coupon) x Transaction Fee %


Charitable Donation = (Price - Coupon Discount) x (Charitable Donation %)


Affiliate Fee = (Price - Coupon Discount) x (1-Charitable Donation %) x (Affiliate Fee %)


Payee Fee =   (Price - Coupon Discount) x (1-Charitable Donation %) x (1-Affiliate Fee %) x (Payee Fee %)


NOTE: If a sale you make isn't affected by the features listed here, then the fee % for that feature will be 0% and the formulas still work. 

Ex: there is no affiliate or payees for a sale, then those fee percentages would be 0.


Here's an Example

$10 Course Price

50% off Coupon

10% Transaction Fee (Starter plan)

20% Charitable Donation

25% Affiliate Fee

50% Payee Fee 


Transaction Fee = (Price - Coupon) x Transaction Fee %

Transaction Fee = ($10 - $5) x (0.1) = $0.50


Charitable Donation = (Price - Coupon) x Charitable Donation %

Charitable Donation = ($10 - $5) x (0.2) = $1.00


Affiliate Fee = (Price - Coupon) x (1 - Charitable Donation %) x Affiliate Fee %

Affiliate Fee = ($10 - $5) x (1-0.2) x (0.25) = $1.00


Payee Fee = (Price - Coupon) x (1 - Charitable Donation %) x (1 - Affiliate Fee %) x Payee Fee %

Payee Fee = ($10 - $5) x (1-0.2) x (1-0.25) x (0.5) = $1.50


Your Earnings = Price - Coupon - Transaction Fee - Charitable Donation - Affiliate Fee - Payee Fee

Your Earnings = $10 - $5 - $0.50 - $1 - $1 - $1.50 = $1


Now, you know exactly how your revenue will be split when you make a sale!

xlsx

Did you find it helpful? Yes No

Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.