How Freemius handles payout to its partners (sellers).
To see your current earnings status, click to toggle the menu at top right hand side of the screen and head over to the My Earnings screen from anywhere on your Freemius account.
In the My Earnings screen, you can see your payable earnings amount, according to your accumulated monthly sales.
How Freemius transfers your earnings to you:
- Your earnings are automatically calculated on the 1st of each month.
- Payout is made on the 10th of each month, with a $100 minimum threshold. In case your monthly earnings are below the minimum threshold, those earnings will automatically be added to your balance for next month.
- For the sake of a 30-day period refunds (that is, refunds to clients who purchase your plugin/theme), the earnings for month
X
are calculated on the 1st of monthX + 2
.For example, if your gross income between 01/01 – 01/31 was $1,000 and at the same time you had to process $500 of gross refunds between 01/01 – 29/02 (for payments during January), your earnings on March 1st will be $1,000 – $500 = $500 (minus commission). If that number surpasses the minimum threshold ($100), which in this case – it does, the payout will be processed on the 10th of March.
This system allows us to refrain from connecting directly to your bank, your PayPal or your credit-card, and still enables us to make sure that you are good to cover any refunds in case your clients request them.
For any clarifications on the subject of your earnings – please feel free to contact us!
FAQ
Is it possible to expedite the payout this month?
We understand that timely payouts are important, and we strive to process them as quickly as possible. To provide some transparency, here’s an overview of how our payout process works.
On the 1st of each month, we run a script to calculate the exact payout amounts and how they should be distributed. To optimize for the best foreign exchange (FX) conversion rates, we use multiple payout channels. This FX optimization can save you as much as 4% on conversions, which is a significant amount. Additionally, we work to minimize payout transfer costs by using the most efficient payment methods, such as ACH for USD payouts within the US and a UK bank for GBP payouts.
Once the calculations are complete, we initiate transfers to fund the necessary accounts. Payouts are then processed as soon as the funds arrive. Depending on the payout channel and source of funding, this process can take 3-6 business days.
Please note that weekends and holidays may occasionally cause delays, as banks do not process transfers during these times. Our team also takes a well-deserved break on weekends, which can impact the processing speed.
While we currently cannot expedite the payout process, we have designed it to be as efficient as possible while ensuring you benefit from the best FX conversion rates and minimized transfer costs.
Why is the refunds amount in the Dashbord different from the refunds amount shown in the My Earnings section?
The refunds amount shown in the Dashbord represents the $-value of the refunds processed during the selected date range. On the other hand, the refunds amount shown in the earnings for month(X)
is the $-value of:
- Refunds processed during
month(X)
andmonth(X+1)
of payments received duringmonth(X)
; Plus - Late refunds processed during
month(X)
of payments that were received beforemonth(X-2)
This process protects against refunds abuse where an attacker can purchase many licenses (e.g., $100,000 worth of licenses) on month(X)
and then refund all of the payments on month(X+1)
. If we ignore the refunds of month(X+1)
when calculating the earnings for month(X)
, the attacker can steal money that way.