Zazzle’s Volume Bonus and Standard Royalty Changes

As I’m sure many who are designers on Zazzle are aware, as of July 1, 2013, Zazzle has discontinued its Volume Bonus Program and they have also changed their default royalty rate.  While I’m not thrilled at the prospect of making less money, this is just the way of business.  Zazzle wants to gain more unique buyers, so they changed from having a Volume Bonus Program to having an Associate Volume Bonus, which means you’ll make the extra money when you bring in new referrals to Zazzle.  It makes sense, though on the end of us designers, this is not great news.   Personally, this is going to reduce my Zazzle income by about 15-20%, which means that my monthly royalty checks will be reduced by a little over $100.

I make enough on Zazzle to cover bills and buy groceries and my partner pays the rent.   This new change is going to tighten the “purse strings” a bit, but it just means doing more promoting each of my shops on Zazzle.  The standard royalty rate I don’t see as such a big deal, because we’re still allowed to set our own royalty and while I don’t set mine too high, I hardly think that 5% being my standard is going to bring much income at all!  To be fair, designs are a lot of work and take up a lot of time, especially when you want each of them to come out perfect so that the customer is satisfied with what they get.

Here is the email that designers received in June:

June Seller News and Updates
by Amanda Shareghi, Zazzle Correspondent
Marketplace Changes Coming

Zazzle is making changes that aim to increase traffic and sales for the entire Zazzle community.

Volume Bonus Becomes Associate Volume Bonus

We’re committed to providing strong incentives to all Zazzle community members to encourage each person to put in the extra effort in generating more awareness for products on Zazzle. With that in mind, starting July 1st, the current volume bonus structure will be transitioned to a Zazzle Associate Bonus Program. You can make money by referring customers to Zazzle. We believe that this new program will align the Zazzle community around generating the most revenue from referred traffic. As a Zazzle Seller you are already enrolled in this new program! We will also host a Zazzle Town Hall on Friday with questions and comments.

More Flexible Royalty Rate

Starting early next week, we will change the standard royalty rate on newly published products to a new lowered threshold of 5%. This will give you additional flexibility in creating pricing that is consistent with your product promotional strategy. You will continue to have complete flexibility in naming your own royalty and the royalty rates you have already set will not be changed. All of your published products will continue to have the same royalty rate that you previously selected.

Stay Tuned

Zazzle is a community which consists of talented artists, designers, Sellers, and Associates like you. We are a thriving market today because all of our members and as always we are making changes to ensure growth for everyone. We’re excited to be sharing the work we’ve been doing behind the scenes to increase traffic and sales for all of our community. Are you as obsessed with mobile as we are? Great things are ahead with more news to come.