And here is another...

Re: [spiers] Net Revenue Defined

Hi John,

In terms of what you pay designers, how do you define
net revenue? gross sales less returns, allowances,
discounts, promotions, and shipping and handling?

***Yes, say 6% of what YOU got for it. So if you invoiced for a $1000, then the
designer gets $60... but if the is reduced to $900 net because of advertising
allowance, then the designer gerts $54. Shipping and handling is paid by the
customer, and is nothing the designer had anything to do with, so no royalties
on S&H.***

Have I left items out or included too much, such as
the shipping and handling and promotions?

***the line is what you were paid, ultimately, for what the designer
designed.***

Also in the case of exporting, do you pay designers a
% on net revenue based on the same definition?

***Assuming the same mark-ups, sure.***

John

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