Sometimes it can happen that a product is developed by several vendors. In this case, to claim corresponding shares and avoid misunderstandings with revenue distribution, a Joint Venture Partnership is to be used.
Joint Venture Partner is another vendor who has contributed to your product. For example, you have created a series of videos for the online courses, but you have no idea how to edit and subtitle them. In this case, you ask another vendor to be your Joint Venture Partner. JVP edits and subtitles your videos, so the online course is ready to launch. To distribute a revenue, all you must do is set the Joint Venture share, either in percent or a fixed amount. That’s it – after the product is sold, the revenue will be shared between you and your Joint Venture Partner automatically.
The Joint Venture statistics are listed in a Joint Venture tab on Transactions page:
You as a Vendor cannot set yourself as a JVP for your own product.
You can add as many JVPs to your product as you want. If another Vendor is added as a JVP several times, then his share is calculated as a sum of all his shares.
The total amount of JVP shares plus Vendor’s share cannot exceed 100%. The vendor’s share is a sum that is left after all JVP shares are deducted from the Total Income.
If the total JVP share for a given product for all JV Partners is set to 100%, a Vendor gets no revenue.
Remember that Affiliates cannot be Joint Venture Partners for the same product.
Types of JVP Services
A vendor can select which service the Joint Venture Partner receives his share for on the Product page:
There are the next services that JVPs can provide at CopeCart:
Services: JVP provides services for this product.
Market Intermediation: JVP acts as an intermediator in a product selling process.
Affiliate Management: JVP manages Affiliates for the given product.
Support: JVP provides support for this product.
Support Management: JVP manages the support team for this product.
Help with Product Development: JVP helps to develop the product.
Product Manufacturer: JVP is a manufacturer of this product.
Please pay attention that these services are for your convenience only. They stand for titles designed to help you to differentiate your JV Partners. The Joint Venture Partner’s share and rights do not depend on the services provided.
Calculation Process Overview
Always remember that a Vendor receives his share in the last turn. It means, the deductions from the Gross amount are ordered as follows:
- Tax payments
- CopeCart Commission Fee
- Affiliate Commission Fee
- Joint Venture Partner Share
The sum that is left after all deductions, is a Vendor’s Earned Net Amount.
Gross Amount – Tax Charge – CopeCart Fee – Affiliate Fee – JVP Share = Earned Net Amount
Revenue Distribution Between the Joint Venture Partners
The revenue shared between a Vendor and his Joint Venture Partners is called a Total Income. Essentially, it is a sum that’s left after the tax charges, CopeCart fee, and Affiliate fee were applied.
Gross Amount – Tax Charge – CopeCart Fee – Affiliate Fee = Total Income
How much Joint Venture Partners and Vendors will gain each? That depends on their share of Total Income that was set by the Vendor.
The Gross amount is 1000€, the tax rate for the product is 19%, the CopeCart fee equals 4.9% of Gross amount + 1€ per transaction. The affiliate fee is 50%.
Gross Amount = 1000€
VAT = 190€
CopeCart Fee = 50€
Affiliate Fee = 380€
Gross Amount – VAT – CopeCart Fee – Affiliate Fee = Total Income
1000€ – 190€ – 50€ – 380€ = 380€
380€ is the Total Income that will be shared between JVPs and Vendors according to their set rates.
The vendor has set one Joint Venture Partner’s share to 30%, another Joint Venture Partner’s share to 40% of Total Income. So, the Vendor’s share is 30% of Total Income.
JVP1 will gain 114€ (30% of Total Income = 30% × 380€)
JVP2 will gain 152€ (40% of Total Income = 40% × 380€)
Vendor’s Earned Net Amount = Total Income – JVP1 Share – JVP2 Share
Vendor’s Earned Net Amount = 114€ (380€ – 114€ – 152€)