Revenue Model (80/20 Split)

Life-Changing Wisdom Marketplace  |  Last Updated: March 6, 2026  |  Version: 1.3

Life-Changing Wisdom Marketplace is committed to transparency in how we share revenue with our authors and creators. This document outlines our revenue-sharing model, payment processes, and associated terms.

1. Revenue Share Overview

Net Sales Proceeds is the customer payment minus production costs, fulfillment costs, and transaction fees (printing, shipping, payment processing).

This 80/20 split reflects our current creator-first pricing model. If we adjust the split, we will provide at least 30 days written notice. Existing products may be grandfathered under the previous rate at our discretion.

Example Calculation

A customer purchases a memoir for $25.00.

• Customer Payment: $25.00
• Production Cost: $6.00
• Shipping: $4.00
• Transaction Fee: $1.00
• Net Sales Proceeds: $14.00
• Author Receives (80%): $11.20
• Platform Fee (20%): $2.80

2. Payment Schedule

Payments are distributed monthly, 45 days after the end of the sales month, via Stripe Connect to your designated bank account. The 45-day window protects both parties against returns, chargebacks, delivery issues, and payment disputes.

There is no minimum payout threshold. Whether you earn $5 or $500, you receive payment after the waiting period. Payments typically arrive in your bank account 1–5 business days after being sent.

Detailed sales reports are available in your vendor dashboard: units sold, gross revenue, deductions, net proceeds, and your 80% share. Reports are downloadable in PDF and CSV formats. Real-time sales tracking is available.

3. Production and Fulfillment Costs

You are responsible for production and fulfillment costs, deducted from the customer payment before the revenue split.

• Print-on-Demand Books (Lulu Direct): Printing, binding, and base material costs.
• Merchandise (Printful): Manufacturing costs per unit.
• Shipping: Actual shipping costs to deliver to the customer.
• Payment Processing: Stripe fees, typically 2.9% + $0.30 per transaction.

All costs are disclosed in your sales reports. We pass through actual costs with no markup.

4. Tax Responsibilities

You are responsible for all taxes on your earnings, including income tax and self-employment tax. Life-Changing Wisdom Marketplace will issue 1099-K tax forms through Stripe when applicable (currently: more than $20,000 in gross payments and more than 200 transactions per calendar year from this platform). Some states have lower thresholds (Connecticut: $600). The platform collects and remits sales tax where required by law. We recommend consulting a tax professional.

5. Customer Data

Customer email addresses are shared with you for each purchase. Use this data for direct customer engagement, audience building, and marketing in compliance with our Privacy Policy and applicable laws. Data shared is limited to the buyer’s email address and the product purchased.

6. Platform Fee (20%) Usage

The 20% platform fee covers platform development and maintenance, hosting and infrastructure, payment processing integration, chargeback protection and risk management, customer support, marketing for the marketplace, and legal and administrative costs.

7. Refunds and Chargebacks

If a customer receives a refund or files a chargeback, the full amount is refunded to the customer and deducted from your future earnings. If future earnings are insufficient, you may be invoiced. The 45-day payment delay absorbs most chargeback losses before payout. See our Refund and Return Policy for details.

8. Revenue Model Updates

We reserve the right to modify this revenue model with at least 30 days written notice. Existing products may be grandfathered. Changes are announced via email and posted on this page. Continued use after changes takes effect constitutes acceptance.