How Are Royalties Calculated On Sale Items
There has been some confusion on how royalties are calculated on items that have been discounted by the developer/author. Just to be clear, we calculate our percentage based on the selling price of the product at the time of sale – not the price of the product before any discounts.
All service tier rules apply to the discounted price for royalty calculation.
For example: For the WebSeller Plus tier…
Normal product price is $50.00 – the BMT royalty is 13%
If your sale price goes below $40.00 the BMT royalty will be calculated at the full 15% rate.
Minimum royalty ($1.25) is applied on all service tiers.
If you need more information about our service tiers, Click Here.
Affiliate royalties were calculated on the full product price, regardless of discounts until September 2007. Currently affiliate royalties are based on actual price charged.
In almost all cases the royalty amount difference is very small. If this is an issue, please consider modifying your discount to take into consideration the royalty differential.