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Sales Fees

Overview​

This document explains how revenue is distributed when a bookshop sells content from the marketplace. Understanding this distribution is essential for both bookshops and content owners to project their earnings accurately.

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Important: Most calculations described in this document are performed on the net value (after taxes). However, the Publica.la fee is calculated on the gross value (before taxes). Taxes are collected separately and are not included in the revenue distribution model.

How Revenue is Distributed​

When a publication from the marketplace is sold through a bookshop, the revenue is distributed between three parties:

  1. The bookshop that sold the publication
  2. The content owner who created the publication
  3. Publica.la as the platform provider
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These percentage values are set according to the agreement between Publica.la, the content owner and the bookshop.

Content Owner Revenue​

The content owner receives a fixed percentage of the total net sale price:

Content Owner Revenue=SRP×(1−D)Content\ Owner\ Revenue = SRP \times (1 - D)

Where:

  • SRPSRP = Suggested Retail Price after taxes
  • DD = Content Owner Discount (percentage offered to distribution channels)

Publica.la Revenue​

Publica.la receives a percentage of the total gross sale price (before taxes):

Publica.la Revenue=SRP×PFPublica.la\ Revenue = SRP \times PF

Where:

  • SRPSRP = Suggested Retail Price before taxes
  • PFPF = Publica.la's Fee (percentage of the gross SRP)

Bookshop Revenue​

The bookshop receives the remaining amount after the content owner and Publica.la have received their portions:

Bookshop Revenue=SRP×Discount−SRP×PFBookshop\ Revenue = SRP \times Discount - SRP \times PF

Which can be simplified to (when calculating using only the net price):

Bookshop Revenue=SRP×(Discount−PF)Bookshop\ Revenue = SRP \times (Discount - PF)

Default Percentages​

By default, these percentages are set to:

  • Content Owner Discount: 50% (portion of sale price offered to selling channels)
  • Publica.la Fee: 15% (calculated on the total gross SRP)

This means:

  • Content Owner receives: 50% of net SRP
  • Publica.la receives: 15% of gross SRP
  • Bookshop receives: 35% of net SRP (50% - 15%)

Example Calculations​

Example 1: Default Percentages​

For a publication with a gross SRP of $11.00 including 10% sales tax:

  • Gross SRP (before tax) = $11.00 (1,100 cents)
  • Net SRP (after tax) = $10.00 (1,000 cents)
  • Tax rate = 10% (0.1)

Revenue distribution:

  • Content Owner receives: $10.00 × 50% = $5.00 (500 cents) - calculated on net price
  • Publica.la receives: $11.00 × 15% = $1.65 (165 cents) - calculated on gross price
  • Bookshop receives: $10.00 × 50% - $1.65 = $5.00 - $1.65 = $3.35 (335 cents)

Total distribution: $5.00 + $1.65 + $3.35 = $10.00 (1,000 cents)

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The default percentages shown above only apply when both the content owner has a 50% discount configuration and the bookshop has a 15% Publica.la fee agreement. Major publishers and content providers like Planeta, Bookwire, Penguin, Patagonia, and others often have different negotiated terms.

Example 2: Major Publisher (Planeta)​

For a Planeta publication with a gross SRP of $11.00 including 10% sales tax, with Planeta offering a 30% discount and Publica.la fee at 10%:

  • Gross SRP (before tax) = $11.00 (1,100 cents)
  • Net SRP (after tax) = $10.00 (1,000 cents)
  • Tax rate = 10% (0.1)

Revenue distribution:

  • Content Owner (Planeta) receives: $10.00 × 70% = $7.00 (700 cents) - calculated on net price
  • Publica.la receives: $11.00 × 10% = $1.10 (110 cents) - calculated on gross price
  • Bookshop receives: $10.00 × 30% - $1.10 = $3.00 - $1.10 = $1.90 (190 cents)

Total distribution: $7.00 + $1.10 + $1.90 = $10.00 (1,000 cents)

Glossary​

Bookshop: A tenant that sells content from the marketplace through its Publica.la store. Bookshops may exclusively or partially sell content from other content owners in the Publica.la network.

Content Owner Discount: The percentage of the sale price that the content owner offers to bookshops selling their content. This percentage is distributed between Publica.la and the bookshop.

Publica.la Fee: The commission Publica.la takes when a bookshop sells a publication from the marketplace. This fee is calculated on the gross price (before taxes) and only applies to marketplace content sales.

Content Owner: A tenant who owns content that has been uploaded to the marketplace.

Marketplace: The platform where content owners upload content they want to be sold by other stores in the Publica.la network, and where bookshops source content to sell.

SRP (Suggested Retail Price): The price paid by the end customer for a publication. For revenue distribution purposes, we always use the net price after applicable taxes.

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