Royalty Deduction

Jadendreamer13
Valued Contributor III

Why is there a royalty deduction for third-party sales?

4 REPLIES 4

idraw
Honored Contributor

Jadendreamer13
Valued Contributor III

Thanks, but I’m not talking about a referral here. I’m talking about a third-party sale that doesn’t give me referral income. It reduces my royalty of 10% to a lesser amount. So, when my sale comes from a third-party, my standard royalty of 10% is reduced. Why does that happen?

Because the person was referred to buy your product and someone got a referral royalty. 3rd party could mean it was a designer or zazzles marketing emails.

idraw
Honored Contributor

@Jadendreamer13 
How about this explanation posted by ColsCreations, does it make it clearer?
ColsCreations Valued Contributor II ‎08-30-2022
What does it mean to be "referred by a third party"?
It means the customer came in through a link with someone's referral ID attached to it. This could be another designer, an intentional affiliate, or Zazzle themself. Whoever gets the referral credit earns a flat 15% of whatever the customer's order total was. On your end, 20% of your gross royalty (note it's gross royalty, not 20% of order total) is deducted from Third-Party sales to help off-set the payment to the referrer.