This article describes how success fees are calculated and invoiced to you.
What are success fees?
Success fees are a share (in %) of the extra net revenue you earned by using ShoeAI. In other words, a success participation on the additional net revenue ShoeAI created in our shop in a given time period.
When are success fees charged?
Success fees are charged quarterly 14 days after the end of each quarter. So for example:
- For Q1, the success fees are calculated and invoiced on the 14th of April.
- For Q2 on the 14th of July
For each quarterly invoice, we will also correct the previous invoice up or down, in case your earnings have changed due to purchase and return data that came in late.
How are success fees calculated?
Success fees are calculated as a % of your extra net revenue you earned tracked on platform.shoesize.me (read also ShoeAI Dashboard).
What does "net revenue" mean?
Net Revenue = Revenue after returns and VAT
What does "extra net revenue earned" mean?
The extra (i.e. additional) net revenue you earn is calculated the following way (log into your ShoeAI Dashboard to see your results from your data):
- Take the net conversion of ShoeAI users (for example 6%). Deduct from this the net conversion of non-users (2%). This gives you the net conversion increase for each ShoeAI user (6%-2%=4%).
- Multiply this with the amount of users, gives you you can determine the extra net orders that the ShoeAI users placed (for example 10000 users x 4% = 400 extra net orders)
- Multiply the extra net orders with your average net order value (e.g. $100), gives you the value of the extra net orders (= extra net revenue earned). In our example, 400 x $100 = $40000 extra net revenue.