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Share revenue automatically with joint ventures

In addition to the possibility of working with affiliates, Digistore24 also offers you the option of entering into a partnership with one or more “vendor partners”.

For example, imagine you and your colleague Max start a joint project. You create an e-book for which Max records a number of videos. You want to offer the e-book and video course together as one product.

In this case, you create a “joint venture” on Digistore24. This is always a good idea if you have developed a digital product together with one or more partners and you would like to share the revenue accordingly.

1. ​About joint ventures on Digistore24

On Digistore24, you can set up a joint product together with another vendor. This is what we call a joint venture partnership - this ensures that the revenue is automatically allocated to the respective vendor account for each product sale. You determine the distribution of your revenue in advance and then you receive your assigned share.

For example, if you worked for 70 hours on the project but your partner only worked for 30 hours, then set up your joint venture with shares of 70% and 30%. Digistore24 will then automatically distribute the revenue to you both after deduction of the taxes and Digistore24 margin.

For joint affiliates, their commission is deducted before the revenue is allocated as usual. However, each vendor can also integrate their own affiliates, whereby the respective vendor pays the affiliate commission from their own share.

Sample calculation

Thomas created a product with Marcel and Stefan, which he would like to sell for 100 € and have promoted by affiliates. The affiliates should receive 50% of the revenue after deduction of taxes and fees. The rest is then divided equally between Thomas, Marcel and Stefan.

What would the invoice look like?

  • The product costs: 100.00 €
  • The Digistore24 fee is: 8.90 €
  • VAT is: 15.97 €
  • This means that after deduction of taxes and fees, the following amount remains: 75.13 €
  • The affiliate receives 50% of the revenue after deduction of taxes and fees i.e. 37.57 € net. The gross amount is 44.70 €.
  • The joint venture share for Thomas, Marcel and Stefan amounts to 37.57 € net. That means: Thomas, Marcel and Stefan each receive 12.52 € net. The gross amount is 14.90 €.
Tip:

Instead of setting the share as a percentage, you can also set fixed amounts for your JV partners if you prefer.

2. ​Set up joint ventures

Step-by-step guide

Please note:

Unlike affiliate partnerships, joint ventures become active immediately. Therefore, if you create a new joint venture for a product, it is also used for new payments for existing subscription and installment purchases. The same applies to joint venture cancellations; new payments are no longer paid to the corresponding joint venture partner.

3. ​Determine affiliate commissions for joint ventures

If you want all joint venture partners to pay equal shares of the affiliate commissions, adjust the respective affiliate settings as usual ​and enter the same shares in the joint venture settings​.

You can also set it up in such a way that only one joint venture partner pays for the affiliate commissions. Here is an example of how to proceed in such a case:

Desired revenue distribution

For a sale without an affiliate, the distribution is as follows:

Vendor: 40% of the revenue
JV partner: 60% of the revenue

For a sale with an affiliate, the distribution is as follows:

Vendor: 40% of the revenue
JV partner: 25% of the revenue
Affiliate: 35% of the revenue

Solution

Step 1: Enter an affiliate commission of 35% for each product. Here we explain how to do this.

Step 2: Enter your joint venture partner as the default affiliate for the product. This way, your joint venture partner receives the commission if no other affiliate receives it. Here we show you how to make an affiliate a default affiliate​.

Step 3: Set up a joint venture. The joint venture divides the 65% of the revenue left over once the affiliate has received their 35% commission.

Vendor: 61.54 % (= 40%/0.65)
JV partner: 38.46 % (= 25%/0.65)

If the sale is made without an affiliate, the joint venture partner also receives the affiliate commission, provided the joint venture partner is specified as the Default affiliate in the product details (under Account > Products and by clicking on the pencil icon ) in the tab Properties.
Another example to illustrate this: if the affiliate should receive 30%, 70% of the revenue is distributed in the joint venture contract. Instead of 0.65, 0.70 must be calculated.

​4. View joint ventures

Under Account > Contracts​ you will see an overview of all the joint ventures you have created (“Joint Ventures of my products”). In addition, you will see all joint ventures in which you are a joint venture partner of a product created by another vendor (“Joint Ventures with partner products”).

5. ​Your most important questions regarding joint ventures

Can I transfer revenue from one account to another?

Unfortunately this is not possible. It is principally for technical reasons that you cannot retrospectively transfer product-related revenue from a Digistore24 account to another.

What you can do to give your partner the money they have already earned: Agree on an amount of transfer the money yourself.

What you can do to ensure that your partner receives the money they have earned in the future: You can automatically assign future product-related revenue to a partner. Simply create a joint venture with a partner share of 100%.

What happens if I as a vendor provide a promolink with my own Digistore24 ID?

A vendor cannot act as an affiliate for their own product. If they write their own Digistore24 ID in the Promolink, then the Cookie currently present in the browser is invalid.

If you as a vendor would like to become an affiliate for your own product, we recommend that you open an additional user account.

How are the costs for chargebacks allocated for products from joint venture partnerships?

For every joint venture partnership, the shares of the revenue are defined in advance. Therefore, the costs for a chargeback are distributed proportionately among all the vendors. In a joint venture partnership with a revenue distribution of 30% to 70%, the costs for the chargebacks are also divided 30% to 70%.

Updated on 20. December 2019

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