When you sell a product on Hotmart, it's common to have questions about how net revenue is calculated for the different participants in the sales process. First, it’s important to understand who the parties are that receive a share when a sale is made on Hotmart. In this process, up to four parties can receive payments:
- Creator: The person who created the digital product.
- Co-creator: The person who helped in the creation of the product.
- Affiliate: The person who promoted the product in exchange for a commission.
- And Hotmart, which intermediates the sale.
In this article, we'll explain how this distribution works and the factors that can influence the final amounts.
How are the amounts calculated?
The net revenue for creators, as well as the commissions for affiliates and co-creators, is always calculated based on the net sale amount, which means the amount remaining after Hotmart’s fees are deducted. However, the commission calculation works as follows:
- Gross product value: This is the total sales price.
- Hotmart fee deduction: The fee is subtracted from the gross price.
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Commission calculation: With the net amount defined, the values for each party are calculated in the following order:
→ First, the affiliate’s commission is deducted from the net amount.
→ Next, the co-creator’s commission is calculated based on the remaining amount after the affiliate’s payment.
→ Finally, the remaining amount is given to the creator.
❯ To better understand, let’s look at an example:
Let's use an example to illustrate how this calculation works, in a scenario without currency conversion or tax deductions:
- Product price: US$100
- Net amount: US$89.60 (after deducting Hotmart's fee)
If the affiliate's commission is set at 35% and the co-creator's at 10%, the division will be as follows:
- Affiliate: Receives 35% of the net amount (US$89.60), which equals US$31.36.
- Co-creator: Receives 10% of the remaining amount after the affiliate’s payment. That is, 10% of US$58.24 (US$89.60 - US$31.36), which equals US$5.82.
- Creator: Receives the remaining amount, which is US$52.42.
What factors can influence the net revenue amount?
The amount displayed on the platform may differ from the hypothetical calculation due to several factors. Here are some situations that may impact net revenue:
- Hotmart fee: Fees may vary according to the transaction currency.
- Taxes on the fee: In some countries, taxes are applied to Hotmart's fees.
- Video player fee: If the creator chooses to use Hotmart's video player, there may be an additional charge.
- Currency conversion: Sales made in different currencies may have conversion variations that affect the final amount.
- Participation of affiliates and co-creators: The presence or absence of these participants changes how the value is distributed.
- Installment fee: If the creator opts to cover this fee, it may also affect the final amount.
For more information about fees, check out this article. And for information about taxes on fees, you can consult this article.
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