How to calculate my income?

During the order purchase process, clients may use rebates and discounts, so the final commission for the same music in the same license may be different. The general commission calculation formula is as follows: (If no rebates or discounts are used, the corresponding data is 0)

Commission = (original price-discount-rebate-tax) * commission rate

Let’s take an example: The purchaser selected a piece of music for $ 84. But he/she used a 10% rebate link shared by one recommended user and used a $ 10 discount coupon when paying. Then when the commission rate of the selected music author is 63%, the formula for this order is as follows:
Commission for the selected author= ($ 84- $ 10- $ 6.33- $ 10.75) * 63% = $ 35.86

The following are the definitions of several elements in the formula:

a. Discount: It refers to the preferential activities that clients participate in when they purchase. Each client’s purchasing needs are different. For long-term or bulk purchase clients, certain discount activities are necessary. Considering the long-term and stable win-win cooperation, 100Audio would give benefits to the purchaser. This is beneficial not only to 100Audio, clients, but also authors. The facts also prove that more clients will choose to recharge in a large amount and then make fixed purchases on 100Audio.

b. Referral: This is an activity where one could recommend others to buy music and then earns for itself. The rebate activity is that the purchaser recommends the music to a friend. If the friend buys it, the recommended user will receive 10% of the order reward, and the remaining order amount would be divided in proportion. If this music is not recommended, then perhaps there is no such order. So after the order is confirmed, it is necessary to reward the recommended users. Authors can also recommend their links to friends or share this info on the Internet. For specific tutorials, please refer to this page.

c. Tax: It means the invoice tax that must be paid in proportion to each order. Since most buyers on 100Audio are in China, we have to abide by China tax laws which means that the author will have 17% withheld from all China sales. Also, according to China tax policy, there’s another income tax(see below Attention) for individuals that varies between 40% and 20%. We currently issue invoices for all sales orders on the platform, and the system automatically deducts taxes in proportion.

d. Commission rate: That is, the agreed share between the author and 100Audio. Each author has a choice of cooperation methods when signing up for a contract. Different cooperation methods have different commission rates. For details, please refer to this page.

All our commission rates and purchase discounts are transparent and clearly displayed at our backstage. 100Audio guarantees the commission system to remain public and transparent. Commissions will be calculated automatically by the system. No manual intervention throughout the process.
(Click on Dashboard — Earnings, then each author could view detailed calculations for each sale.)

Attention: A Tax Explanation for Authors with Income over $2300 / month

After a period of effort, a lot of authors on our platform are having exceeded CNY 16,000 (around USD 2,300) income after tax per month. Congratulations on the sales!

Our marketplace is currently paying the income tax, abiding by the Individual Income Tax Law of the People’s Republic of China, for everyone. About the income tax, the first step of a single author’s (a single person even he or she has two accounts) taxable income from service is CNY 20,000 (around USD 2,850). A part of our authors who earn more than this line may face a higher tax rate for the exceeding taxable income due to the step system. Please refer to this table:

Our suggestions are:
1. Withdraw your commission in time each month, instead of accumulating for months.
2. When income after-tax exceeds CNY 16,000 (around USD 2,300 but the rate fluctuates), we will withdraw all commission in the account by default. Note that you have to pay extra income tax.

Why the first step of withdrawal is CNY 16,000 while the one for income tax is CNY 20,000?

CNY 16,000 + CNY 4,000 = CNY 20,000

CNY 16,000 is the number you see on the dashboard, namely the amount you get, with a tax of CNY 4,000 (CNY 20,000 * 20% (tax rate for the first step) = CNY 4,000) being paid by 100Audio.

PS: 100Audio is currently paying the income tax on your behalf. Your actual earning shouldn’t be affected much.