Certainly! Let’s consider an example where the marketplace (like Infinite Gui) takes a 20% commission rate from the sales of authors’ products. Here’s how it typically works:

Example Scenario with a 20% Commission Rate #

1. Sale Price: Let’s assume the sale price of your WordPress theme or plugin is $100.
2. Commission Rate: The marketplace charges a commission of 20% on each sale.
3. Author’s Earnings Calculation:
   • Sale Price: $100
   • Commission Rate: 20% (or 0.20 in decimal form)
   • Marketplace Commission: $100 * 0.20 = $20
4. Author’s Earnings:
   • Total Sale Price: $100
   • Marketplace Commission Deduction: $20
   • Author’s Earnings: $100 – $20 = $80

Understanding the Calculation #

• The marketplace deducts 20% ($20 in this example) from the total sale price of $100.
• After deducting the marketplace’s commission, the author receives $80 as earnings from the sale.

Key Points #

• Commission Deduction: The commission rate is applied to the total sale price of the item before any other deductions.
• Author’s Share: Authors receive the remaining percentage of the sale price after deducting the marketplace’s commission.
• Impact on Pricing: Authors may consider this commission rate when setting their product prices to ensure they achieve their desired earnings per sale.

Conclusion #

In this example, with a 20% commission rate, the marketplace retains $20 from a $100 sale, leaving the author with $80. It’s essential for authors to factor in commission rates when pricing their products and to understand how these rates affect their earnings on WordPress marketplaces like Infinite Gui.

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