Since we’ve launched IndieBill in June 2016, we’ve been questioned quite a few times about the viability of IndieBill’s business model given that we payout 85% while protecting our partners from chargebacks.
We understand some of you are afraid we might not be in business in a few months. That’s why we’ve decide to share the maths behind IndieBill with all of you, so that can be reassured about the fact we’re indeed building a sustainable business.
Here are the main costs we have on a transaction : processing the payment costs us around 7% of the transaction amount (that will go down with volume), fraud costs us about 1.5%, and delivering files costs us around 1% on average (including transactions with no files).
With your commission of 85%, it means there is about 5.5% of the money remaining for us + the $0.95 service fee to pay for all of our other expenses (servers, hosting, salaries, etc.).
We strive to reduce all human work to its minimum so that we can put the biggest share of the revenue in the hands of the content creators.