Getting paid on Metalabel is both very straightforward and something new in the world of creative platforms. Here’s how it works.
Earnings Splits
Metalabel introduces a new financial model for creative people: Earnings Splits, or Splits.
Splits let creators seamlessly distribute the earnings from a release to contributors according to set percentages. Once a Split is set, earnings will flow to all contributors’s accounts when a payout agreement is confirmed.
As an example, imagine a group of four people make a zine together and agree to split the proceeds equally. With Splits, each of their accounts would receive that percentage of each transaction.
Splits are also how labels can transparently receive their portion of earnings from each release according to the terms they and the artists have agreed to.
Creating a Split
To first set the split, visit the Price Tab of the Release Builder. Use the drop-down menu to select the contributor and set the percentage of the proceeds that should be allocated to them.
Contributors who have accepted the invitation to join the release will be listed in this drop-down form. Contributors who are not invited or do not accept their invitation cannot be added to a split.
If you are the only creator, you will still need to set the split so 100% of the proceeds go to yourself.
When someone collects your release, its proceeds go into your release balance. Your release’s corresponding Earnings Split then determines how much each contributor gets paid.
Revenue received from each sale will first go towards costs and fees. The remaining earnings split thereafter. Here is a simple way to think about how money flows within a release.
When setting a split, the percentage amount across your contributors must add up to 100%.
Only a Label Admin can set the split. Split value can be edited anytime, even after a release is launched.
Understanding Earnings
The total earnings for your label are organized together. You can view earnings for all your label’s releases under the Earnings Tab. The Earnings tab balance is updated in real time, and all money is stored in USD currency. You can withdraw funds to a personal bank account with the currency of your choice through Stripe Connect.
Who can see what
Traditionally transactions and earnings with artists and labels has been opaque. We’ve tried to strike a balance between being transparent and secure with the most sensitive information.
Label admin:
- See all aggregated earning numbers
- See the earnings for all releases
- Can set splits and edit label and release financials
- Can initiate payouts when minimum amount is met
Label contributor:
- See all aggregated earning numbers for the label
- See the earnings for all releases
- Cannot initiate payout or drill down to the release details unless added onto the specific release
Release admin:
- Can only see earnings for releases that they’re the admin of
- Does not see any aggregated earning numbers (Gross volume, Balance, Available to withdraw, Lifetime earning)
- Cannot initiate payout
Release contributor:
- Can see the high-level earnings for a release they’re part of, but nothing else
When initiating a payout, the name of the person who initiated is shared in the payout notification email so everyone is clear on who did what. If this visibility rule does not work for you, write to us.
Important terminology:
Gross volume
Revenue generated from the release over time. This number is the sum of all sales and shipping amounts from all orders that purchased this release. It is pre-fee, pre-commission, post-sales tax.
Commission
10% Metalabel fee on gross volume.
Stripe fees
2-5% processing fees on all transactions passed through to Stripe according to their fee structure.
Shipping
Total shipping cost collected for the release. This is the sum of all shipping fees from orders that purchased this release. The person assigned to receive the shipping balance during the set-up of your release will receive these funds. Shipping distribution happens alongside the payout agreement.
Recoup (or fixed costs)
In some cases, a release will have fixed costs that need to be paid back first. On Metalabel, money earned from collects will go to the recouped balance first before contributors are paid out.
Balance
Balance is the revenue from the release minus Metalabel’s commission, Stripe fees, and shipping costs. This is the amount of money available for distribution. Like a bank account, the balance amount decreases following a payout execution.
Available to withdraw
Amount of the balance that is available to withdraw right now. We hold money received from transactions for a “grace period” of approximately 4-5 business days before making it available to withdraw. This is required to safeguard against malicious activities, accidental purchases, and chargebacks.
Lifetime earnings
Sum total of what you’ve made across all releases across all time on Metalabel.
Payout agreement
A Payout agreement happens when you want to distribute proceed from your release to your contributors. When you are ready to initiate a payout, click on the Payout Button from the Earnings Page.
A payout agreement is generated for your review. Metalabel will respect the latest version of your split setting and calculate the payout amount of your balance for the time period based on it. Once confirmed, the balance is immediately distributed to respective parties according to the agreement. An email is sent out to notify all parties and the balances on Metalabel will be updated.
Withdrawing Funds
Once a payout agreement is executed, the distributed funds go to each creator’s personal balance. You can visit your creator profile Earnings page to view your earnings.
In order to withdraw funds from Metalabel to your bank, you must successfully connect a Stripe Connect account. You can do this on your creator profile's Settings Page, under the Payout Tab. A basic Stripe Connect account is free to create. We are supporting a limited number of countries for now. It is important that your bank operates within these countries’ jurisdiction. If your country is not listed, write to us.
Current countries supported:
United States, Canada, Mexico, Sweden, United Kingdom, Portugal, France, Germany, Spain, Italy, Netherlands, Denmark, Singapore, Japan, Philippines, Australia, Hong Kong, India, Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Panama, Paraguay, Peru, Uruguay.
Once Stripe Connect setup is complete, you will be able to withdraw funds from your Metalabel balance to your bank by clicking on the Withdraw Button on the Earnings page. Note that you can only withdraw the amount indicated as “Available to withdraw.” There is a minimum amount of $5 USD that must be met to initiate a withdrawal.
Once a withdrawal is initiated, the money leaves Metalabel and is transferred to your bank through Stripe. For those whose bank is set up in currencies other than USD, you can use Stripe’s Foreign Exchange Rate Estimator to see what you’ll receive in your native currency. There is typically a lead time of 1-7 business days for this transaction depending on your financial institution. You can track the progress of this transfer on your bank’s ledger or in the Stripe Dashboard, which we made accessible from your Profile Payout Page.
Understanding Disputes and Refunds
A buyer may reverse a charge with their bank on an order. When this happens, Stripes creates a dispute case and immediately deducts the amount from the balance. Your release account may run negative when this happens. Metalabel will broker a challenge on your behalf and absorb the fees but not the purchase price. If the challenge is won, you’ll see the purchase amount restored on your balance. Generally speaking it is strongly advised that you connect with the buyer directly to set expectations around the transaction in order to minimize disputes.
Our platform policy indicates that there are no exchanges or refunds for purchase made. You are responsible for the promises made in the release and fulfillment of your work. Please refer to our terms and conditions for more details.