Our Subscription product is structured to help our users save time and prevent decision fatigue.
Winning more customers by keeping it Simple
We’ve noted a higher Lifetime value (LTV) and return rate to our marketplace from our all media-type users compared to single media-type users. Our user data shows that the return rate of a happy user who uses all our media-types is four times that of other users.
With an all-media-type-in-one Subscription that encourages cross media type use (paid annually with unlimited downloads), we want to make it easier for the buyer to find our product useful.
Maintaining our 50/50 revenue split with artists
Artists will receive 50% of the net revenue as always. Of the revenue collected from each subscriber, we will apportion to our artists in as fair a method as possible, using the “subscriber allotment” method.
The working concept is that the revenue earned from each subscriber will go toward paying for the specific content that they actually download. We will combine all of such use by each subscriber, and assign 50% of the net revenue to artists whose content subscribers downloaded that month.
Structuring a recurring revenue for artists by providing only Annual payment for buyers
By having only Annual payment made available to buyers - this longer commitment period is to help ease out the peaks and troughs for artists for the year.
Artists can look forward to a more predictable, consistent earnings month on month, with royalties not fluctuating as much according to seasonal and peak period monthly usage patterns.
In all GCP plans, we share 50% of profit to our contributors as always. And how we apportion the Marketplace Subscription plan subscribers’ revenue to individual artists will be based on the value that you contribute to each subscriber. The more value you provide to the subscriber - the more revenue will go to you.
How do we calculate the value?
First, we will be implementing a points based system to calculate subscriber allotment for each download. Because our marketplace subscription plan is differentiated by its cross media types provision with unlimited download buyer features, we will need to recognize the value that each media type contributes to our buyers’ video creation process.
Based on the frequency of usage, each downloaded media type will be allotted points based on the table below:
Music / HD Video / 3D
Sfx / Photo / Vector / GIF / Lottie
Moving on from the allotted points table, let’s begin calculating the value that you’ll potentially contribute to each subscriber. For example, there are 3 subscribers who downloaded your templates in this month:
- Subscriber A paid US$198 for a 1 year subscription
- Subscriber B paid US$360 for a 1 year subscription
- Subscriber C paid US$498 for a 1 year subscription
*The illustrated annual subscription prices as above takes into account early bird pricing, as well as subsequent non-early bird subscriber pricing.
Because our plan is paid annually and we share 50% revenue as artists’ revenue:
- The artists’ revenue from Subscriber A is US$8.25 per month (198/12*50%)
- The artists’ revenue from Subscriber B is US$15.00 per month (360/12*50%)
- The artists’ revenue from Subscriber C is US$20.75 per month (498/12*50%)
So assuming that for Subscriber A:
He downloads only 1 template in this month and the template is from your portfolio. This means Subscriber A’s download count is 75 points this month. Your downloaded template = 75 points (as per our points table) = all he needed in this month for his content (75 points out of 75 points), hence 100% of the artists’ revenue of US$8.25 from Subscriber A will go to you.
- Your earning from Subscriber A is 100%*$8.25 = US$8.25
So assuming that for Subscriber B:
He downloads 3 templates, 4 videos, 3 music tracks, 6 images in this month and there are 2 templates downloaded from your portfolio. This means Subscriber B’s download count is 500 points (75*3+35*4+35*3+5*6) this month. Of the 500 points, your downloaded templates constitute 150 points, hence your portfolio fulfilled 30% of his content needs (150points/500points). 30% of the artists’ revenue of US$15.00 from Subscriber B will go to you.
- Your earning from Subscriber B is 30%*$15 = US$4.50
So assuming that for Subscriber C:
She downloads 1 template, 3 music tracks, 4 GIFs in this month and there is 1 template downloaded from your portfolio. This means Subscriber C’s download count is 200 points (75*1+35*3+5*4) this month. Of the 200 points, your downloaded template constitute 75 points, hence your portfolio fulfilled 37.5% of her content needs (75points/200points). 37.5% of the artists’ revenue of US$20.75 from Subscriber C will go to you.
- Your earning from Subscriber C is 37.5%*$20.75 = US$7.78 (rounded off to the 2nd decimal place)
So potentially, your GCP Marketplace Subscription earnings for this month will be US$20.53.
Artists’ revenue for this month
|Total tally on points used by subscriber||Points attributed to your portfolio||Your allocated % towards artists’ revenue for this month||Your GCP earnings|
|Subscriber A||US$8.25||75 points||75 points||100.00%||US$8.25|
|Subscriber B||US$15.00||500 points||150 points||30.00%||US$4.50|
|Subscriber C||US$20.75||200 points||75 points||37.50%||US$7.78|