▶ What are commissions?
As a seller on Spoonflower, every time someone purchases one of your designs you will earn a base commission of 10% of the full retail price of the fabric or wallpaper sale (regardless of any discounted or promotional price). So if a customer buys a yard of your design on Petal Signature Cotton®, which has a retail price of USD$19.00, you will earn a base commission of USD$1.90 -- even if there is a promotion running or the customer used a coupon. This commission will then be added to your account as Spoondollars, the in-house Spoonflower currency, and can be paid out to your PayPal account if you choose. Spoondollars are currently calculated in USD, regardless of the currency used to place the order.
▶ Why are there so many decimal places?
As of April 2017, we've expanded commissions to include fractional cents to ensure that percentage-based design sales receive correct earnings. With the advent of our new Fill-A-Yard™ offering and the fractional participation many designs have in its completion, we now carry all payments out to 5 decimal places so designers can capture fractional cents earned. While fractional cents cannot be paid out via PayPal or spent on orders, they remain in your Spoondollar balance and collect further fractional cents -- once it rolls over into a full cent, it can be spent or included in payouts.
▶ What are bonus commissions?
Throughout each calendar month, there are sales thresholds you can meet to qualify for bonus commissions above the everyday 10% base commission. Sales are calculated from midnight UTC time on the first of the month to 11:59pm on the last day of the month.
- Fabric and wallpaper sales between $3,000.00 and $9,999.99 (equivalent to $300.00 - $999.99 in base commissions) qualify for an extra 1% bonus for an 11% total commission
- Fabric and wallpaper sales between $10,000.00 and $14,999.99 (equivalent to $1000.00 - $1499.99 in base commissions) qualify for an extra 3% bonus for a 13% total commission
- Fabric and wallpaper sales above $15,000.00 (equivalent to $1500.00+ in base commissions) qualify for an extra 5% bonus for a 15% total commission
On the 8th of every month, any applicable bonus is retroactively calculated for the previous month’s earnings. The bonus is added to your Spoondollar account balance and is then available for payout on the next payout date. On the 1st of each month, the calculation is reset and you receive the standard 10% commission until you reach one of the bonus thresholds again.
▶ How do I get my commissions paid out?
Your commissions are stored in your account as Spoondollars, the Spoonflower currency. Spoondollars can be used to purchase product on the site, and earned commissions can also be paid out to your PayPal account. Earned Spoondollar commissions are immediately available for use on the site (excluding any fractional cents), or are available for payout on the next payout date with no waiting period.
Commission payouts occur every 14 days, but your commission balance must be greater than $10.00. To receive payouts, click on the Redemption Details link on the Spoondollars tab of your account page and fill in the information. Commissions earned up until midnight the night before payout will be included. When your commissions are paid out, you will receive an email from PayPal informing you they are available.
Note: Spoondollars are also a form of in-house credit used as refunds for orders, as redeemed gift certificates, and as prizes for monthly challenges and giveaways. These are not available for PayPal payout, though they can be used for purchases on the site at any time. Spoondollars do not expire.
▶ Setting up your account for PayPal payouts.
- Hover over the user icon and select Account Settings
- Go to the Spoondollar tab and click Redemption Details
- Select the option to redeem Spoondollars to your PayPal account
- Enter your PayPal email address
- Click the Update Redemption Details button
▶ What if a customer cancels their order for my design?
If an order is canceled or returned, a debit will show in your account for that amount -- much as it would in a bank account when funds were deducted. Debits for returns or cancellations are not bound by the current month. This means that an order placed in May might be returned in July, and will show on your July balance as a debit. Basic transaction details will be included in the return so you can confirm the original purchase through your Spoondollar history in Account Settings.
▶ Do I have to pay taxes?
Tax information is required if you plan on selling designs on Spoonflower. You can find out more about that here: Income Tax Documentation for Verified Sellers: FAQ
If you have not yet completed the tax information portion of the Seller Verification process, a portion of your Spoondollar account page will reflect any withholdings:
Yearly Taxes Withheld are taxes that have already been rendered to the IRS and cannot be recovered. Pending Withholdings will be sent to the IRS by the next payout date, though if you are in the US or a country with a US tax treaty, you can complete the tax information to prevent future withholdings.
▶ How can I qualify for a bonus commission?
All designers who have designs available for sale in the Spoonflower Marketplace can qualify for a bonus commission if the above thresholds are met -- there is nothing additional you need to do.
▶ Will I receive a commission if someone buys my design a Home Decor item?
When one of your designs is purchased on a Home Decor item through Spoonflower, your commission will be based on the amount of fabric needed to make the item in question. If one yard of Linen Cotton Canvas ($29) is used for a pillow, then you would receive the 10% base commission of $2.90 for the base fabric used. Home Decor sales do count towards the monthly total used to calculate commission bonuses.
▶ What about Fill-A-Yard™ commissions?
Our Fill-A-Yard™ offering is a unique way to select multiple prints on the same piece of fabric, handy for purchasing half yards or fun projects like cheater quilts. However, this means that whichever portions of a Fill-A-Yard project are covered by a single design may not always result in a commission that ends in a whole penny.
For example, if a design is used to cover one 6x6" square of the one-yard cheater quilt template on Petal Signature Cotton®, that is 2.4% of the surface area of the print. The commission for a full yard of Petal is $1.90 -- but 2.4% of $1.90 is $0.0456, so the commission for filling one square of the cheater quilt does not result in a round, whole cent number.
However, we wanted to ensure that designers received the full commission for the correct percentage of fabric covered by their design. To do so, we've expanded commissions out to 5 decimal places, so that percentage-based design sales earn as precise a commission as we can calculate.
Currently, you will also earn commissions on Fill-A-Yard projects you order for yourself using your own designs -- this is in lieu of the 10% designer discount on regular fabric purchases. This 'commission' will show up in your account as spendable Spoondollars, but will not be included in payouts or on any total earnings for tax purposes.
▶ How can I track my Spoonflower earnings?
When you are logged in to your account, you can review your Spoondollar balance by going to Account Settings and clicking on the Spoondollars tab. You will notice three sub-sections that link to information about Your Spoondollars, Your Statements - to see annual summaries from previous years, and your Redemption Details - to set up your PayPal account. They are highlighted in the image below.
- Available Balance: This is the grand total of Spoondollars currently in your account, including earned commissions, refunds for orders, design challenge winnings, giveaways and other in-house credits. This balance is available to use for purchases on the Spoonflower site immediately.
- Earned Commissions: These are the commissions earned from sales of your designs. They are immediately available for use on the site, with no waiting period, and can be paid out to PayPal if you choose. On payout day, your payout will include all commissions earned up until the time of payout.
- Other Credits: These are any refunds, gift certificate balances, challenge or giveaway prizes that you can use to make purchases on Spoonflower. These credits cannot be paid out to PayPal.
- Next payout: The date of the next bi-weekly payout, if you have selected to have your earnings transferred to your PayPal account.
- Total commissions: The amount of commissions you've earned during the current calendar month. This includes any commissions you have already been paid out for (but does not include any bonus commissions).
- Eligibility lets you know if you have met one of the bonus thresholds.
- Additional amount needed: The amount of commissions needed by the end of the month before the next bonus threshold is met.
- Next bonus commission date: The date when any applicable commission bonuses are calculated and added to your Spoondollar account balance. Those bonuses will then be available for payout on the next bi-weekly payout date. Once you have earned a bonus, you will also be able to view your past bonus history.
- A listing of transactions for the last three months, in reverse order with most recent first. You can view different months by changing the range in the date boxes to the right.
- Transaction lines are alternately highlighted and include the date of the transaction, its description, whether it was a debit or a credit, and a running total of your current account balance.
- All Spoondollar transactions are included in the ledger, including sales, cancellations, any personal orders that have been refunded, challenge winnings, gift certificates, and Spoondollar payouts. As such, the running balance includes both commissions that can be paid out, and other credits that cannot.