Upcoming Changes To Zazzle’s Terms of Use

[Heather]

Hello Creators,

We’re making updates to Zazzle's Terms of Use, including the Creator License Agreement, and introducing our new Ambassador Program Agreement, which replaces our Associates Program Agreement. While the onsite experience will not be updated until April 1st, you can preview the updated Terms of Use here. 

We understand you might have additional questions or feedback. Please use this form to share them directly with us. While we may not be able to respond individually at this stage, we’ll review all submissions and address frequently asked questions after the Terms of Use go into effect.

To keep the conversation organized, all community discussions on this topic will be redirected to this thread.

Thank you for your understanding and for helping us make Zazzle a thriving community for all Creators!

Best,

The Zazzle Team

UPDATE 3/24/25: 

Hi Creators - Thank you all so much for your valuable feedback and for taking the time to submit your questions through our form. We truly appreciate your engagement and insights. Rest assured, we are carefully reviewing each question and will address the most commonly asked ones soon.

Timely Update Regarding Royalty Rates: We understand your concerns about adjusting royalty rates, and to support you through this transition, we will be processing royalty rate changes daily from now through April 15th, allowing creators time to make any necessary adjustments. Please note that updates may take 24–48 hours to appear. After April 15th, we’ll return to our regular schedule, with royalty updates processed on the 20th of each month. 

*To clarify: Setting your royalty to 10% exactly will not trigger the Excess Royalty Fee. Royalties above 10%, will trigger the Excess Royalty Fee when changes go into effect 4/1. 

UPDATE 4/7/25

This forum post is now closed for new replies. Please see our most recent update for information about the Terms of Use Changes and information about the new Ambassador Program. Thank you!

[lastzebra]

pretty sure it's 5% of the total...but the updates are very confusing, zazzle is no good at communication.

[SBS]

From the Creator FAQ:

"Q: If my Royalty rate is 14.9%, how is the Excess Royalty Fee calculated? Is it 5% of 14.9%, or
do I end up with 9.9%?
A: The Excess Royalty Fee is calculated as 5% of your Gross Royalty, not a flat deduction from
Your Royalty Rate. If Your Royalty Rate is 14.9% on a $100 Product, Zazzle deducts 5% of the
Gross Royalty amount earned (in this case, 5% of $14.90), which results in a Net Royalty of
approximately $14.16, not $9.90."

[Andrea]

Yes I do 14.5% commission but I also do the cheapest option possible with a low commission and call it the "budget" version. e.g. a postcard invitation with a 10% commission. This gives people the option to still enjoy the design on a low budget, or as a tactic; the low price lures them in to buying a better version. That strategy is now "out the window". I'm now going to have to do a 5% commission budget version... 😲

[TRW]

***edited to remove text in violation of our Community Policy*** 
I mean, everyone on Z I know personally makes under $200/month there.
I didn't even make monthly payouts a few times last year, and I used to make at least $150/month, which was still pitiful compared to the others!

[sharonrheafords]

I don't even understand referrals anymore??? Through working with a customer, I became friends with her and her family. She is an attorney who has a successful firm with her husband .... and spends a lot on her son's birthday. We did over hundreds of dollars of beach towels to give as party favors for his 2nd and again for his 3rd birthday party; yet, even though I thought it was done to earn a referral, it was not at all. I must say, Zazzle helped me correct one order, and I appreciate that. I just have no referrals now though.

[Andrea]

Wait! you didn't get a referral on bespoke work, with recommendations to various products and party regalia... That should be standard. Did you have to add your referral code to the private - personalised links to get it, and you forgot - or something?

[Vipul]

With the sales/earnings of 1st April as sample data - and specifically for those who have 90% and more sales coming through 3rd party - and assuming the percentage of self referrals and 'None' remains the same in ones sales - and compensating for the increase in earnings accruing through self referrals - this translates to 5% drop in earnings, with the disclaimer that its too early to know how positively the change in the lifespan of cookies will affect the earnings. Zazzle has provided the increase in self referrals earnings % as a way for one to increase earnings and makeup for the 5% drop.

Well it takes some serious efforts to increase one's earnings by 5%. So yeah that's about it.

iCoolCreate.com

[JerryLambert]

So, the Marketing Royalty Fee I am assuming is the amount that Zazzle will deduct from our royalty when a customer clicks on one of their links or ads. They seem very high to me, up to 50% of our royalties. 

At the moment I am not aware of any way to differentiate those sales from other 3rd party sales. Will this be changed in our royalty history to separate these transactions from other 3rd party sales? Right now I just assume that all 3rd party sales are Zazzle "marketing fees" and if those are going to jump up to 50%, which unless I am wrong is currently 15%, that is going to take a huge bite out of my royalties considering most of my sales are 3rd party. 

[tiffjamaica]

This is how I understand it as well.  AND an "Ambassador" third party sale will also get their 15%. 

[Susang6]

Yes, that is how I see it, and I also have a feeling that at 10% royalty, I will not earn enough to pay for their "marketing fees".  Most of my sales are 3rd parties, and a 50% fee is huge... I will probably owe Zazzle money.   I think with all of the fees, my royalty will have to be set at 30% just to earn a little more than 10%.  

[Amanda23]

I am very concerned about this portion in the new user agreement: 

26.2.1. However, by submitting Content to Zazzle, (i) you grant Zazzle a nonexclusive, worldwide, royalty-free, sublicensable (through multiple layers) and transferable right and license to use, copy, reproduce, prepare derivative works of, modify, publicly display, perform and distribute your Content in connection with the Site and Zazzle's (and any of its successors') business, including without limitation for promoting and redistributing part or all of the Site (and derivative works we may create) in any media now known or hereafter developed; and (ii) you grant other Users the license rights detailed elsewhere herein (e.g., for Collaborative Content, per Section 6).

Though I continue to hold copyright, does this essentially mean you can also reproduce items with my artwork, (and create derivatives via AI) if I continue to have my work on the site after March 31? Or is this specifically about creating things from our works for the purpose of marketing/advertising (not offering, for example, a variation of my work on a new card). I hope that makes sense. 

I would appreciate your clarification soon, as I may want to remove some of my original photography and art. 

Sincerely, 

Amanda

[Amanda23]

I *WILL* say, I am so glad that I can now easily earn associate income for referring the creations for others without sacrificing my own referral if I use the wrong type of link (as a Promoter 2.0 program member currently). I think this will build much more of a sense of community and rooting one another on! 😄

[LMGildersleeve]

Don't forget to reread the announcement Amanda. You'll have to submit your questions directly through a link above. 🙂

[Amanda23]

I did that as well. 🥰 I also requested a reply prior to April 1, as if I don’t want my art used for that purpose, I need to remove it by then. Because if I agreed to it and then remove it, I think they can still sub license it. 

[Cat]

I'm not interpreting it that way. It sounds more like we're all in the Promoter 2.0 program now.

2.1.3. When using a Self-Promotion Link, you only earn Referral Commissions on Referred Sales of Your Products. You will not earn Referral Commissions on Content uploaded to the Site or created with Zazzle’s design tools by anyone else when you use a Self-Promotion Link.

[Mariholly]

@Cat 

So, will third parties only be Z? No one besides you or Z will be able to promote your products?

Does that mean all those blogs and posts featuring products from other designers will be useless? Or did I miss something?

[Cat]

I'm pretty sure that 3rd party referrals still exist but they're calling them "cross-promotion link referrals" in the new Commission Table: Ambassador Referral Commissions & Creator Royalties – Zazzle Help Center

I am confused about whether everything from the Affiliate program just rolls over into the new Ambassador program or not - like does our RF number stay the same and do existing links still work, or do we need to re-apply and get a new number. I'm assuming (hoping) it will be the former because if all those old links suddenly stop earning referrals that would really suck.

[Mariholly]

@Cat 

Sincerely, I believe that Z has handled all of this poorly. There are too many changes creating uncertainty, and perhaps it would have been easier to explain each change separately instead of introducing the new terms this way. My head hurts from thinking and speculating so much.

[Cat]

I dunno. Contracts are always written in legal-speak so I suppose they have to present it that way. I'm just really confused about what it all means and how the math works out - maybe I'm just dense. I think the bottom line is that Zazzle is going to be taking a bigger chunk of money, so any way you slice it people are going to be upset. But I do think it would have been helpful if they could have explained the new fee structure in a more transparent way so that if/when people are upset, they're at least upset about reality rather than getting worked up about an interpretation that may or may not be correct.

Hopefully they'll clarify soon. If not, I guess we'll just have to wait until April to see what it all actually means.

[Ricaso]

That's so they can complete orders, promote, etc
It's the same in the older versions too..  

[PenguinPower]

This looks like very standard boilerplate that is necessary for sites like this to operate - every time they post a thumbnail or mockup they are posting 'derivative' images of your work... Every time they advertise a product they are displaying and distributing your content. It sounds scary, but it's not. It's also not new. I don't know if they changed this wording or not, but even if they have there was something very, very similar in place before. 

[Cat]

I share the concerns about the "Marketing Royalty Fees." Here's what the agreement says:

3.3.1. Marketing Royalty Fee: If the sale of a Product is to a User referred (i) by an Ambassador from Links (as defined in the Ambassador Program Agreement); or (ii) through Zazzle’s marketing efforts (e.g., social media or affiliate networks, search engines, press release(s), tv/media ads, etc.), then a marketing fee (“Marketing Royalty Fee”), equal to a percentage of your Gross Royalty for the Product as specified here, will be deducted.

It sounds to me that ANY 3rd party referrals - whether through an independent "ambassador" or through Zazzle's marketing efforts will result in a royalty hit between 40-50% depending on the department. While I'm not wild about Zazzle wanting to more than double the carve out for referrals that come from them, I can sorta see that they have to cover their costs placing TV ads or whatever, so while I don't like it, I can see at least some justification for it.

The part that REALLY doesn't make sense, is that according to the above paragraph, the Marketing Royalty Fees also apply to referrals that come through the "ambassador" program, even though the ambassador only gets 15%. Am I reading this correctly? So if I place a referral link with my ambassador code, and someone buys a product as a result, Zazzle deducts a fee of 40-50% from the designer, but only pays me 15%? What happens to the other 25-35%? Zazzle just takes that fee for what... administration? I hope I'm reading that wrong, because it seems patently unfair to deduct a fee from the designer's royalty and then pay less than half of it to the referrer.

[amazingstuff01]

---

@Cat wrote:

 So if I place a referral link with my ambassador code, and someone buys a product as a result, Zazzle deducts a fee of 40-50% from the designer, but only pays me 15%?

15% is on the product price. 40-50% is from the royalty. If someone buys product for $ 100 and the designers royalty is 10%, the affilate will get $15  ie 15% but for designer they will get a deduction of 40% of their royalty. ie 40% of 10 that is $4. Net royalty will be 10-4= 6, which earlier would have been 8 with 20% deduction. So it works out as a hit of 25% on royalties from 3rd party sale.

[PrintablePretty]

This is truly scary. I pay my bills with my Zazzle check, my husband isn't working at the moment. We both have major health issues. If calculated correctly my current month sales if this was in effect now I would be taking a $600+ LOSS. 

This goes into effect April 1st, April fools day. Would be great if they say Surprise! We're not actually slashing your royalties and charging you for doing your OWN marketing! GOTCHA! But I highly doubt it. Corporate greed at it's finest. All the POD's are doing it. I'd rather pay a shop fee than lose a car payment or house payment worth of royalties every month this is insane. 

[tiffjamaica]

That was my first thought - I'd SO much rather pay a fee to sell here than all this nickel & diming. I don't think they realize how much WORK it is going to be for long term sellers here even just go and adjust royalties on products to account for the new Marketing Royalty Fees. It's maddening. 

[PrintablePretty]

I was actually speaking with another Zazzler and this might be happening out of necessity more than greed. It could possibly be something they HAVE to do to keep the doors open. The economy is tough and many businesses are suffering and many have shut down. I know other POD platforms have taken a hit just like every other business has since 2020. I doubt Zazzle is immune. I'd be way more on board if this was the case. 

[Connie]

Yes, other POD platforms took a hit, but Zazzle is the only one that offers customization, so they have a leg up over all the other POD sites and sites like Amazon. I find it hard to believe that a 2 billion dollar company is so hard up they have to take HALF of our royalties just to keep the doors open!

[PrintablePretty]

I absolutely understand your frustration Connie 💗, trust me I am in a mix of frustration, shock, and fear myself lol. I think we are all feeling some kind of way about all of this. However, we simply don't know Zazzle's internal financials or operational costs. Even a 2 Billion dollar company can face challenges we're unaware of. Many retail and e-commerce business have struggled significantly since 2020. This could have even been triggered entirely by the tariff issue. I do not know how many of the Zazzle products are American made.

That said, taking 50% of creator royalties is a dramatic change that directly impacts all of us who contribute to the platform's success. Whether this is driven by necessity or greed the impact on designers is the same 😞

I am curious how others are planning to adapt to this change? Are you going to consider adjusting your pricing strategy, work to get more self referrals, or explore other platforms? I'm not sure yet myself but my gears are turning trying to figure something out. 

[Mariholly]

@PrintablePretty 

Wow, I hadn’t thought about that, but what you’re saying might make some sense. In the case of stationery paper, it’s manufactured in Italy. In any case, passing this cost onto the creators doesn’t seem right to me.

[AuntieShoe]

I also think it is a way to avoid raising prices when higher tariffs on Chinese goods hits. I don't think much of what we sell comes from Mexico or Canada. But the huge tariffs being talked about force companies to raise prices. I think, as I said, that Z is trying to avoid raising prices, and, therefore, losing sales, by making us pay for it.

[JerryLambert]

“Marketing Royalty Fee” is a term used in franchising and the fee is typically between 2% - 10%. Anything above 15% is grossly excessive imho.  

Also, as I asked earlier, we will need to be able to calculate these fees because this will complicate our tax filings. We will need to have access to details of how the fees are assigned and distributed, e.g. pay-per-click advertising, email marketing, and search engine optimization, and documentation and receipts for these expenses because marketing royalty fees placed on franchisees are fully tax deductible. Will these fees be reported on our 1099-MISC? 

[Cat]

I'm assuming that the amount reported on our 1099s would already have any fees deducted since they are never paid to us in the first place. That's how it works now, isn't it?

[JerryLambert]

That is how is has worked before they started calling it a “Marketing Royalty Fee”. I've been trying to get them to differentiate these 3rd party sales for years. With this structure now though and the sheer amount of the fees, they will have to disclose them. If we are paying a portion of our royalty for pay-per-click advertising, email marketing or SEO, in any form and from any party, which is now stated in the terms, we can deduct these charges in our tax filings. Which means that they must comply with disclosure laws, it's even regulated. 

[Connie]

Wow, this is as bad as Redbubble! What's even the point of selling on here if they are going to take HALF of our Royalties!? It's bad enough they lowered the "excess royalty fee" limit from 15% to 10%, but then to take half of that 10% on top of it??????

[idraw]

@Connie 

Very well said.

[Connie]

There's NO justification for taking HALF of our royalty! Zazzle us supposed to be making their money off the base products, and then our measly little royalties are added to that price. Their profit from the base price is supposed to be enough to cover expenses and their profit- if it isn't, they should either raise the price, find a different supplier, or drop the product.

[Babawich]

Didn’t this use to kick in after 15%?

3.3.2. Excess Royalty Fee: Zazzle will retain an excess Royalty fee of five percent (5%) of your Gross Royalty for sales of Products for which you select a Royalty rate that is greater than ten percent (10%) (“Excess Royalty Fee”), in order to cover expenses such as payment processing.

[CrazyMermaid]

I agree that it used to be 15 percent. Not happy about this one at all.

[CarlaRolfe]

Yes, it was 15% and was the reason many, many designers capped their own royalties at 14.9 - both to stay competative and to avoid that fee.

[Connie]

Yes, this is completely AWFUL!!!!!! And they waited until after the 20th to tell us this, so now we have to wait all the way until the 20th of NEXT month to change our royalties, which means we will be losing a lot of money between now and then!