This comes up time and time again. So we thought we would try to explain it here.
Here is how it works. There is nothing to hide...
As an affiliate, you get the commission % you are quoted WITHOUT paying any PayPal fees on every transaction. This saves you HUGE money in fees and is something unique with our system.
How is the possible? Because the vendor pays all PayPal fees upfront for you and then gives you the whole % of the sale. So the vendor is paying your fees and giving you more of each payment (without fees) - this is a very generous model.
However, when commissions start to approach 100% one of two things must happen since the vendor is paying your fees for you.
- The vendor can pay you 100% (PayPal fee free money) and they would lose money on every single sale - because of paying your PayPal fees for you. (Doesn’t make sense)
- The vendor can pay you 100% of what is left after they pay the PayPal fees for you.
If you are offering 100% commissions to your affiliates, it would be calculated as follows:
The customer pays the full price to the vendor.
The vendor then pays the Paypal fees: Estimated PayPal Fees of Product Price (we use 2.9% + 0.30) - PayPal adjusts this for each buyer/seller combo
The vendor pays JVZoo Fees (5%) of Product Price
From the remainder, the affiliate is paid their commission.
JVZoo decided that it would be wrong to force vendors to lose money on 100% commission products. So in that case, the PayPal fees (which have to get paid either by you or the vendor) are paid for you and then you get 100% of what is left without paying any additional fees. This approach is saving you money as the affiliate.
That is why it appears you are not getting 100% of the money, but you ARE getting 100% of the money that PayPal doesn't take.