Royalties Explained

In the spirit of building a community of contributors who are prepared to share their work for the benefit of others and to promote the sharing of resources, The Worship Cloud has built into the website a Royalty payment system.

Royalties are accrued by a contributor when a customer downloads the Content for the first time only.

Calculating Royalties - Downloads

Royalties are accrued differently depending on whether Content has been purchased (movies, PowerPoints, MP3s) or downloaded as part of user's available credits (Subscription entitlement to the Resources Section (pink icons - written documents, images, hymns).

Unless otherwise agreed with The Worship Cloud, payments are calculated as follows.

A. Subscription downloads from the Resources Section using credits (pink icons):

For every item downloaded as part of the credit system, the contributor will receive one portion of the royalty pot calculated at the end of that quarter (31^st Dec, 31^st Mar, 30^th Jun and 30^thSep).  The Pix and Mix Subscription Royalty Pot is made up of:

1. Income from Pick and Mix Subscriptions (credits per week) - When a Pick and Mix Subscription is purchased, one third of the fee (excl. VAT) will be divided by four and added to the royalty pots for the current and the following three quarters.
2. Income from Donations - a percentage of all donations received within a quarter will be divided by four and added to the royalty pots for the current and the following three quarters
3. Profit from Advertising Revenue  - a percentage of the profit from advertising revenue generated within a quarter will be divided by four and added to the royalty pots for the current and the following three quarters.

At the end of each royalty quarter, all the money in that quarter's royalty pot will be divided by the number of items downloaded by customers from the Resources Section in that quarter. A contributor will receive one share for each of their items downloaded (one download equals one share of that quarter's royalty pot).

If a user downloads an item more than once, only the first download will count towards a royalty share being paid to a contributor.

B. Fresh Thoughts for Sunday eMagazine

When a Fresh Thoughts for Sunday Subscription is purchased, one third of the fee (excl. VAT) will be divided by the number of weeks and each week will be subdiveded by the number of contributions included in that issue.  This will be caluculated manually and will not appear on the contributor's royalty report on the site. 

When an individual Fresh Thoughts for Sunday issue is sold 30% of the selling price (excl. VAT) will be divided equally between the contribntions included in that issue.  This will be automatically calculated by the site and will show as part of your quarterly royalty balance.

C. Individually purchased items from the Resources Section.

When an item from the Resources Sections is purchased individually (ie not as one of their credits):

• VAT is deducted from the selling price (currently 20p of the £1.20 total price)
• 30% of the balance will be allocated to the contributor.

D. Purchased from Online Store:

• VAT is deducted from the selling price
• Unless otherwise agreed, 50% of the balance will be automatically allocated to the contributor.

Royalty Payments

At the end of each quarter the contributor's royalty will show on their account page on www.theworshipcloud.com. The balance can be used in one of the following ways:

• a percentage or all royalties earned by a contributor can be paid to one of the sponsored charities.
• It can be spent on purchasing products or a subscription to the site.
• When the unpaid royalty balance totals more than £20, contributors can request payment direct into their bank account or by cheque.
• A combination of the above.

Requests for payments over royalty balances over £20.00 should be submitted to penny@twelvebaskets.co.uk please allow ten days for payment to be processed.