Marketplace Commission Policy
Effective Date: March 28, 2025
Last Updated: March 28, 2025
1. Purpose
This Marketplace Licensing Policy outlines how seller licenses, advertising licenses, and related royalties are earned, calculated, and managed by the marketplace operator (referred to as “we,” “us,” or “the Marketplace”) for providing platform access, advertising services, and transaction facilitation. Revenue is treated as unearned income under SSDI guidelines, retained for operational sustainability, and available for personal withdrawal at the operator’s discretion.
2. Licensing Structure
- Seller License and Royalties:
- License Fee: Sellers pay a monthly license fee of $9.99, renewable automatically via PayPal, granting unlimited product slots and potential additional perks (e.g., priority support, enhanced visibility).
- Royalties: The Marketplace earns royalties of [insert percentage, e.g., 10%] on each completed transaction by licensed sellers.
- Basis: Royalties are calculated on the final sale price, excluding shipping costs, taxes, or additional fees not processed through the Marketplace.
- Automation: License renewals and royalty allocations are handled by our integrated system with minimal operator involvement.
- Advertising License:
- License Fee: Sellers or users may purchase an advertising license for a flat fee of [insert amount, e.g., $5 per ad], payable via PayPal, to display ads (e.g., banners, featured listings).
- Basis: Fees are charged for the right to advertise for a specified period (e.g., 7 days).
- Automation: Ad license payments are processed through PayPal and recorded by our system with minimal operator involvement.
3. Definition of Unearned Income
- Pending Seller License Fees: The $9.99 monthly fee is unearned until the 30-day license period is fully provided or concludes without cancellation.
- Earned Seller License Fees: Fees become earned for business purposes at the end of the 30-day period but remain unearned personal income under SSDI guidelines until withdrawn.
- Pending Royalties: Royalties from seller transactions are unearned until escrow funds are released to the seller via Escrow.com. They remain unearned for personal income until withdrawn.
- Earned Royalties: Royalties are deemed earned for business purposes when escrow funds are released but remain unearned personal income under SSDI guidelines until distributed.
- Pending Advertising License Fees: Fees paid via PayPal for ads are unearned until the ad is fully displayed or the agreed period (e.g., 7 days) concludes without cancellation.
- Earned Advertising License Fees: Fees become earned for business purposes once the ad service is completed but remain unearned personal income under SSDI guidelines until withdrawn.
4. Role of the Marketplace
- Licensing Only: The Marketplace provides a platform for sellers to operate under a license, advertise, and pay royalties, but does not engage in direct selling, product creation, shipping, customer support, or content creation.
- Automation: License processing, royalty calculation, and fund allocation are handled by integrated systems and PayPal, requiring minimal active involvement from the Marketplace operator to maintain unearned income status.
- Oversight: Our role is limited to occasional administrative tasks, such as approving licenses or ad placements, performed on an as-needed basis.
5. Payment Process
- Collection:
- Seller license fees ($9.99) are collected via PayPal at the start of each 30-day period but remain unearned until fulfilled.
- Royalties are collected automatically from escrow funds upon release to the seller but remain unearned for personal use.
- Advertising license fees are collected via PayPal at purchase but remain unearned until the ad service is fulfilled.
- Retention and Distribution:
- All earned license fees and royalties are retained by the Marketplace in its PayPal account as unearned personal income to support operational costs (e.g., hosting, maintenance, promotion) and ensure self-sustainability.
- The Marketplace operator may withdraw any amount of earned revenue at their discretion via PayPal, at which point it becomes personal unearned income under SSDI guidelines. Withdrawals occur irregularly and as needed, with no fixed schedule.
- Transparency: Sellers can view license and royalty details in their dashboards.
6. Refunds and Disputes
- Royalties: See Escrow Payment Policy for unearned funds and refund handling.
- Advertising License Fees: If an ad is canceled or fails to display before its term ends, the fee remains unearned and is refunded via PayPal. Once earned, fees are non-refundable except in cases of Marketplace error.
- Seller License Fees: If a license is canceled mid-period, a pro-rated refund may be issued via PayPal for the unearned portion (e.g., $0.33/day remaining), at the Marketplace’s discretion. Once earned (full 30 days provided), fees are non-refundable except in cases of service failure.
7. Compliance and Reporting
- Income Recognition: The Marketplace recognizes commissions as income only when they are earned (i.e., released from escrow), in line with standard accounting practices.
- Records: Detailed transaction logs are maintained within our system, available for review by the Marketplace and sellers as needed.
- Tax Responsibility: Sellers are responsible for reporting their earnings to relevant tax authorities. The Marketplace does not provide tax advice or withhold taxes on behalf of sellers.
8. Policy Enforcement
- Agreement: By using the Marketplace, vendors and buyers agree to this Commission Policy as part of the Terms of Service.
- Updates: We reserve the right to update this policy at our discretion. Changes will be communicated to users via email or a notice on the platform, with an updated effective date.
9. Contact
For questions about this policy, please contact us at support@tinkertrend.com.
