New Model for Creator Payments: What You Need to Know
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We’re excited to announce we have changed the way earnings are calculated to make it more simple to understand and to get you paid upfront! This change will take effect starting with June payments for all new and existing monthly subscribers and new and renewing annual subscribers. Below is a detailed FAQ to help you understand exactly what’s happening. If you have any other questions you can always reach out to your account manager or to our support team at creatorsupport@playbookapp.io.
What’s Changing?
In our old accounting system, when a user subscribed through a creator, the revenue would be broken down by the duration of the subscription:
Annual subscriptions were paid out over 12 months instead of a lump sum at the start or renewal of a subscription.
Monthly payments were paid out based on what day the user subscribed during the month (e.g. Monthly subscriptions starting on the 15th of the month would be paid out 15 days first and the remaining 15 days the following payment period).
In our new accounting system, revenue will be paid upfront. This change starts with subscriptions purchased on/after May 1, 2023 which will have an effect on the June 2023 payments.
New and renewing annual subscriptions will be paid in full upfront.
New and existing monthly subscriptions will be paid in full upfront.
Please note: In all cases, payments are still settled on a monthly basis after the close of a month. For example, your revenue for May 2023 will be settled and deposited on/around June 15, 2023. If you need a refresher on payment schedules, click here.
When is this actually happening?
The change went into effect starting May 1, 2023. That means you will notice the change in your June 2023 payment (on/around June 15, 2023).
How will this impact the payments I receive?
This change impacts your payments in a positive way! You are now realizing your revenue upfront and getting paid in full when your user is paying for the app.
Why am I only earning $79.20 (annual) or $11.99 (monthly) instead of $99 or $14.99?
$79.20 and $11.99 are estimates of the price of annual and monthly subscriptions owed to you after Stripe fees (max 5%) and Playbook's percentage are taken out. The actual payment numbers might be slightly lower then the amounts displayed in the above example, but the idea is it's the subscription price less fees. Check out how payments work here.
Will this impact the consumer experience?
No, your new and existing subscribers will not notice a difference. The only change is you get paid in full, upfront (yay!).
Understanding the Transition
This transition will be affect June payments. Here’s what you need to know about new, existing, and renewing subscriptions.
Monthly subscribers:
New monthly subscriber revenue, starting in May, will be deposited in full during the next payout in June.
Existing monthly subscriber revenue, starting in May, will be deposited in full during the next payout in June.
Annual subscribers:
New annual subscriber revenue, starting in May, will be deposited in full during the next payout in June.
Renewing annual subscriber revenue, starting in May, will be deposited in full during the next payout in June.
What about the monthly and annual subscribers who paid for a subscription before June 1, 2023?
Starting in the month of May, all existing monthly subscribers will switch over to the new accounting system. All existing annual subscribers are locked in to our old system until their subscription renews. If applicable, these remaining annual payments will be paid out to you over the next 12 months (through June 2024).
Can I review all of these analytics in the app?
We are working to improve our analytics and reporting and will be releasing a more in-depth and robust system on the Admin Panel in the near future (stay tuned for an update!). In the meantime, you can still view info in the Analytics tab in the Creator App. Please note: "Future payouts" section applies to the next 12 months on the old payment system as described above.
An Important Note for Annual Subscriptions
Since you will now get paid upfront for annuals, it’s important to realize that could make your payouts look different month to month. If you receive a ton of annual subscriptions at launch, around a challenge, during the holidays, etc. you will see a huge payout that first month (which is great!). However, in the following months, you may see less revenue or no revenue at all in some of the following months since you gained a lot of subscribers during the previous month and received the payments upfront.
You will still be making the same amount of money, but upfront payments get it to you faster. Don’t be discouraged if you see this in your analytics! Plus, remember you can always use marketing strategies to convince more consumers to sign up for the app to increase your revenue.