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 and 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
  • Affiliates
  • Payees

If you're taking payments through PayPal or Stripe, you'll also want to consider the fees that they charge (typically 2.9% + $.0.30 per successful transaction), but check with your payment processor for the most up-to-date information on their transaction fees.

How to Calculate Allocation

To make this super easy, you can download the attached spreadsheet at the bottom of this article 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 - 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-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 %

Affiliate Fee = (Price - Coupon Discount) x (Affiliate Fee %)

Payee Fee =   (Price - Coupon Discount) 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)

25% Affiliate Fee

50% Payee Fee 

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

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

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

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

Payee Fee = (Price - Coupon) 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 - 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!


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