How Coupons Affect Your Commission Earnings
This article builds off of How Your Commission Earnings are Calculated.
(price - (price * merchant_fee) - transaction_fee) * commission_rate = initial commission
Let's say you are on the Basic subscription plan and selling a product for $20. Your initial commission calculation would look like this:
(20 - (20 * 0.03) - 0.00) * 0.80 = $15.52
In this case, your initial commission would be $15.52.
How Coupons Are Applied
Now let's say you are offering a 10% discount on that $20 product. The variable that will change in the formula above is the price of the item, and not the fees or your commission rate. Let's look at how our example from above works out:
- Determine how much the 10% discount will be in dollars: 20 * 0.10 = $2.00
- Subtract the discounted amount from the original price—this is the new price number that you will put into the formula: 20 - 2.00 = $18.00
- Recalculate your initial commission using the new price: (18 - (18 * 0.03) - 0.00) * 0.80 = $13.97
If you are applying a flat rate discount, you can skip the first step of calculating what the percentage equates to in dollars.