$40.00 x 50% = $20.00 Earnings Goal (or the Earnings Cap as I prefer to call it)
$17.08 Referral earned + $2.62 Royalty earned + $0.29 Excessive Royalty Fee = $19.99 --> 50% of total customer paid
$17.08 + $2.62 = $19.70 total earnings
19.70 is 49.25% of total customer paid
19.70 + 0.29 = 19.99 -- 50% of earnings
This is correct. You're earning 50% of the NRS (total customer paid), less the Excessive Royalty Fee.
* yes, sometimes the final total is off by a cent due to rounding up or down in the calculations
This is not the case. They're just not displaying the info ideally so it does look like that at first. I checked all my sales since April 1st (not a big task, LOL) and all work out exactly right.
Net Referred Sales (NRS) = total customer paid ($11.56)
Earnings goal = NRS x department rate ($11.56 x 40% = $4.624)
So that's the max you can earn on this sale, royalty & referral combined
Now just add up the next three lines:
Referral ($3.70)
Royalty ($0.85)
ERF ($0.08)
= $4.63
Total earnings are 40% of the total customer paid, less the excessive royalty fee.
Just as Zazzle says it's supposed to work.
When this new plan was first announced, people were saying it looks like the ERF is being deducted twice. Zazzle's response was basically, we know it looks like that, but it's just a math thing we can't explain so trust us. I give them that one. When I first was looking at their examples at that time, it did look like it was being deducted twice but the math always worked out properly where it's not.
All one needs to do to re-assure themselves is add up those three things - Royalty, Referral and ERF.
That's going to equal the Earnings Goal (what customer paid x marketing bracket %)
Since the "formula" to figure out total earnings is [Net Royalty + ERF + Referral = Earnings Goal].
The referral amount is always the wild card, it is whatever it needs to be to make the EG total correct. Which is why they removed the % it works out to from the reports, it was just confusing people and isn't a meaningful number in this new system.
Disclaimer here - I haven't had any sales since April 1 that include a 5% User-Option or Secondary Content (have never had that before) but for a normal US sale without those odd things and no currency mess to figure out, everything is correct on my end, and what shows on the regular report line-items matches what is shown on the detailed view.
Do you have an example? Are you possibly having a glitch where what you are actually being paid is not what the detail view shows?
I've only had two self-referrals under this new program and both of them check out. My above example was of course a self referral. Here's the total earnings box on it.
Earnings goal = NRS x department rate ($11.56 x 40% = $4.624)
Now just add up the next three lines:
Referral ($3.70)
Royalty ($0.85)
ERF ($0.08)
= $4.63
Total earnings are 40% of the total customer paid, less the excessive royalty fee.
The $4.55 total I earned is 39.4% of the total the customer paid.
If you add back in the $0.08 ERF, you get $4.63 which is 40% of the total customer paid.
My earnings calculator only accounts for deducting the ERF once and has always worked out to correctly match the earnings others report.
If I have been making a mistake in my calculating this, please show me where I've went wrong.
In the royalty breakdown Z takes out the 'excess royalty fee' AND a 'marketing fee' (which I don't understand since this was a self referral so I'm the one who marketed this product, but that is a different complaint).
In the referral commission the royalty is subtracted out AND the 'excess royalty fee' is taken out again. I should have made the $20-$2.62=$17.38, but I made $17.08 because the $.29 excess fee was taken out again.
$40.00 x 50% = $20.00 Earnings Goal (or the Earnings Cap as I prefer to call it)
$17.08 Referral earned + $2.62 Royalty earned + $0.29 Excessive Royalty Fee = $19.99 --> 50% of total customer paid
$17.08 + $2.62 = $19.70 total earnings
19.70 is 49.25% of total customer paid
19.70 + 0.29 = 19.99 -- 50% of earnings
This is correct. You're earning 50% of the NRS (total customer paid), less the Excessive Royalty Fee.
* yes, sometimes the final total is off by a cent due to rounding up or down in the calculations
I think that because I already understood that those three things (Royalty, ERF, Referral) total to the Earnings Goal, it was clear to me the panel is showing the Royalty & ERF as being deducted from the Earnings Goal to determine the balance due as Referral. But since it threw numerous people for a loop, and will likely continue to do so, it would be in everyone's best interest if they work on laying it out in a clearer manner.
I think that since there are four distinct ways to make a sale / have earnings calculated, we sometimes can't see the forest as we get lost in the trees. For this type of sale, it really doesn't matter what's labeled Royalty and what's labeled Referral, we're going to get a total of 35, 40, 45, or 50% of whatever the customer paid (less the ERF). We just have to drop our old way of thinking on this one.
