How to handle commission on membership site?
Hello guys,
imagine you have a membership site where people pay to see exclusive content of content creators. Of each payment you take X% commission for providing the service.
How do you handle this commission? Are payment gateways able to do some kind of split payment, like automatically sending X% to me and XX% to the content creator?
Or do I have to collect the full payment first and then send the money minus commission to the content creator by myself?
I'd appreciate your insights.
Have a great weekend,
Paddle can do this, they have a built-in affiliate system. I think almost every major payment gateway has this (2checkout, Stripe, Clickbank for info products, etc.)
For now, I found Stripe and Adyen as the biggest companies offering this service. Didn't find anything from 2checkout?
FYI - Paddle removed built in affiliate system for new users. But there are third party integrations available for Paddle affiliate. Haven't tried though.
Hey @mpts
I think it depends on the payment provide you're using, but imo, the easiest way to do this is have product IDs setup so that you know when X product is purchased, what the payout should be and do a monthly (or weekly?) audit depending on your payment schedule.
I googled this and saw Stripe doesn't support splitting payments
https://www.google.com/search?q=split+payments+in+stripe&oq=split+payments+in+stripe&aqs=chrome..69i57j0.2471j0j7&sourceid=chrome&ie=UTF-8
Stripe Connect works for my business model. Doing a monthly Audit and sending the money would work in the beginning. Good thing is that Stripe fee is only 0,25%+0,10€ per transaction.
Hey @mpts,
From my understanding this is definitely possible. I've done similar projects using webflow for the site, memberstack for the membership / exclusive content, and rewardful for the affiliate side to split the payments.
Rewardful looks good, but you really need to take the second package, 9% transaction fee is ridiculous
You have many options.
https://multimerch.com/blog/marketplace-payment-solutions
You don't have to but you can. If operating within EU be aware of PSD2. It only allows this approach for a "limited network". The term is vague, providers will say you need them whatever & marketplaces will sign up just to ensure compliance. The reality is until your marketplace turnover reaches €1M you're not really a concern and your product sounds like a candidate for exemption anyway. So if you go this way in EU read up on PSD2 and be prepared to switch when your plan to conquer the world becomes a reality.
Unfortunately, I didn't reach €1M turnover yet, but thanks for the tip!