Confused About Royalty Rates with User Options

[ashleyh]

I am having some trouble understanding what exactly is happening here with the amount of royalty I am receiving. Zazzle says the following but I am still confused.

"Zazzle offers a variety of options for many products including different paper types and sizes for invitations or different colors and styles for t-shirts. Having these options allows the customer to upgrade the product to fit their personal preference. When a customer chooses a more expensive product type, the price of the product increases, and the increase is considered for a royalty payout at a fixed 5%."

The ways this reads to me is that since the customer did xyz user options, Zazzle capped my royalty at 5%?

This was a 3rd party product and I'm assuming that factors in some way since I have done the math with non referred and it comes out very close.

I have seen this multiple times before but never paid much attention because I was just doing this as a side fun thing but now I'm taking it more seriously and want to understand what exactly is going on. I feel like something is missing here.

[PacifierCity · Accepted solution]

@ashleyh 

21.60 x 10% = 2.16

8.00 x 5% = 0.40

2.16+.40= 2.56

2.56 x 20% = 0.52

2.56 - 0.52 = 2.04

Seems to me you should have earned $2.04 not $2.00's.  The 20% carve out is for the 3rd party referral...  Can someone else chime in... what am I missing?

Edit: Looks like 1 piece of secondary content may have been added... 2.04 x 1.96%=0.039984

2.04 - .04 = 2.00

For reference: https://help.zazzle.com/hc/en-us/articles/360037785973-Zazzle-Royalty-and-Referral-Percentages

PC

..............

[ashleyh]

Thank you for breaking this down for me, I was missing the 20% third party carve out in my math. 

Hopefully someone can fill in the rest of the blanks.