Please Someone Explain as if I were in third grade

[kashmier]

I do not understand the excess royalty fee. I know for 15 years it has been there but since these new fees in which I am making very little I never thought much about it. I always felt it was fair. Now I am wondering why is this fee for higher priced items. Does Z advertise those with higher referral fees more hence needing the extra fee? How are the transaction fees different than if one uses a lower referral fee?  That would make sense if it was an extra fee because they have to change a number to adjust the final fee. Now when I used to do accounts receivable and I had to use an eraser for each and every change that could make sense. Only it doesn't make sense.??  What if I set the fee at 5,6,7,8 or 9% ? Wouldn't that make the transaction fee needed on those because they are not at the 10%.?? All these years I was thinking using a higher % was making myself and Z in general more money and it never bothered me. Now I am thinking the fee is one more way to get a few extra cents for the bottom line. I also used to be happy with anyone that referred me and figured they were doing better if I was but now I find I don't understand anything about pricing. Anyone have input on this thought? What am I thinking incorrectly??   Thank you

Excess Royalty Fee: An Excess Royalty Fee of five percent (5%) of the Gross Royalty will apply when Your Royalty Rate is set above ten percent (10%), to cover transaction processing costs.

[Jadendreamer13]

This new royalty system seems, to me, to be intentionally and unnecessarily complex — and totally unfair to designers. And what makes this situation more frustrating and demoralizing is the lack of response that designers are receiving from Zazzle. 

[kashmier]

So you think if I put this question in the Ambassador forum it will go unanswered?

[Jadendreamer13]

Yes, but I hope that you and Zazzle will prove me wrong.

[Cherie]

Very well said and I agree. You've heard it before, but after all the years I've been here, helped to make it a successful company, it feels like we are just someone to rip off in as many ways as there can be. I'm still here, making pennies when I used to make dollars. Not much incentive here anymore, not much passion for something I used to be excited and proud about. That's ALL gone.

[Van]

"to cover transaction processing costs" <<<that's never made much sense to me. At face value it sounds as though it costs more to process a single transaction with an 11% royalty than it does a single transaction with a 10% royalty?
It's a minor amount, though, when these new "marketing fees" can decrease a designers earnings by 35% to 50%.
I'm also noticing lower "sales" prices on some items, lower than I've ever seen them, so our earnings will be less anyway based on those sales prices. According to Z we need to market our own products to avoid the marketing fees and make more $ but I'm seeing too many people posting that since the April 1st changes almost all their sales are now "3rd party."
Gotta love having our "salary" cut.

[James]

Hi @kashmier , there are certainly things to consider when choosing a royalty rate. This might help explain: https://help.zazzle.com/hc/en-us/articles/220267087-What-Royalty-Rate-Do-You-Recommend-I-Use