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Zero commission

Also called: 0% commission, no transaction fee

A pricing model where the platform charges a flat subscription and takes no percentage of sales. The payment processor's own fee still applies, because that is charged by the processor, not the platform.

Commission and subscription pull in opposite directions as a business grows. A percentage is cheap while sales are small and expensive once they are not; a flat fee is the reverse. The crossover is worth calculating rather than assuming: a free plan that takes 10% of sales costs less than a $39-a-month subscription until sales pass $390 a month.

Read any "0%" claim carefully. It should mean the platform takes nothing from a sale, with the payment processor's standard fee going to the processor at cost — not a lower percentage renamed.

For example

On $5,000 of sales in a month, a platform taking 10% keeps $500. A platform charging a flat $49 a month keeps $49, whatever the month. The payment processor's own fee is charged by the processor either way and is not the platform's to waive. Those two models cross over at $490 of monthly sales.

On Prolaud

Prolaud takes 0% on every plan, and money settles to the academy's own Stripe or Razorpay account rather than passing through Prolaud.

Related terms

  • Payment gateway — The service that collects a payment from a buyer and settles it to a business's bank account, handling cards, wallets and local bank methods — Stripe, Razorpay, PayPal and PayU are examples.
  • Storefront — The public, buyable face of an academy: the pages where a visitor browses courses and other products, and pays, without logging in first.

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