Understanding Marketing Fee on Self Referrals

[tiffjamaica]

I had a breakthrough today about self referrals being subject to the Marketing Fee (MF). I made some comments with the math worked out in another forum post, but wanted to post a summary here so it was more visible. 

SO... the MF is applied to self referrals. However, because of the way that self referrals are now calculated, which is very different than before and much more complicated, the MF does not affect your total earnings. 

That said, whether or not you will make more money on self referrals depends on many factors - were you in the Promoter Program, what your royalty rate was/is set at, what bracket your product falls into, etc.  I was so confused by the explanations saying we'd now make more money on referrals because in all of my own calculations I was making less money (that's because I was in the PP program, had higher royalty rates, and sell in the 50% bracket). It's going to be different for everyone. 

Hope this helps clear up some confusion.  And I hope this allows people to more accurately adjust their royalties to reflect the new system based on what's best for them. 

[Cat]

This is true for all cases except for instant downloads. Even if you have your download royalty set to 99%, you'll still only get 35-50% of the net price paid. Not sure if this is a feature or a bug - I'm HOPING that this is an unintended consequence of the new calculation system and that they'll remedy the situation, but for now, if you self refer an instant download sale, you get less than you would if there was no referral at all.

Please explain how royalties work with Digital Dow... - Zazzle

[tiffjamaica]

Yes, I can't speak for instant downloads. I haven't sold one yet since the changes, but I'm hoping you're right and it's a glitch!!

[Connie]

I filled out their form again, complaining about this digital download bug/ feature. It doesn't make any sense!