Crowdfunding Programs Only
When running a crowdfunding referral program, it’s important to understand how commissions are calculated, especially when it comes to shipping costs. This article explains how shipping costs factor into commission calculations and best practices for managing them.
How Are Commissions Calculated?
When running a crowdfunding referral program, commissions are based on the total pledge amount at the time the pledge is made. This means that any amount pledged by a referred backer at checkout is considered in the commission calculation.
How Does Shipping Affect Commissions?
Shipping costs may or may not be included in the commission calculation depending on how they are collected during the campaign:
Shipping Included in the Pledge Tier
If shipping costs are built into the pledge tier amount, commissions will be calculated based on the total amount pledged, including shipping.
Shipping Collected Post-Campaign
If shipping is collected separately after the campaign ends (e.g., through a backer survey or pledge manager), it will not be included in the commission calculation since it was not part of the original pledge amount.
Can Shipping Costs Be Excluded from Commission Calculations?
At this time, commissions are always calculated based on the total pledge amount at the time of the transaction. There is no option to exclude shipping from commission calculations if it is included in the pledge tier.
Best Practices for Managing Commissions with Shipping Costs
If you want to avoid paying commissions on shipping, consider collecting shipping fees separately after the campaign through a backer survey or pledge manager.
Have further questions? you can contact our support team at team@kickbooster.me.