If my product sale is referred, does Zazzle pay the referral fee or do I?
Zazzle pays the referral fee on your behalf, and we back that fee out of the calculation of your royalty. We always use a flat referral fee of 20% for every referred sale calculation. For example, on a t-shirt with a base price of $12.00 and a 30% royalty markup, the total net sales price will be $14.40, and you would normally earn a $3.60 royalty. But in the case of a referred sale, the calculation changes a little. From the total net sales price, we deduct the 20% referral fee right off the top of the total net sales price. To continue our same example, we will deduct $2.88 from the net sales price of the t-shirt if it is a referred sale ($14.40 x 20% is $2.88). That leaves a new “royalty-eligible” sales price of $11.52 ($14.40 – $2.88 is $11.52). Your 30% royalty is calculated on that value, so you will earn $3.46 in royalty fees ($11.52 x 30% is $3.46). In this example, you give up 24 cents of royalty in order to acquire that order.The 20% referral fee is only backed out of your ro