Payout
What is a Payout?
A payout is the transfer of earned revenue from a platform to a creator's bank account or payment method. For creators selling digital products, courses, or memberships, understanding payout schedules and processes is essential for managing cash flow.
How Payouts Work
- Customer Purchase: A customer buys your product or subscription
- Platform Processing: The platform processes the payment and deducts fees
- Holding Period: Funds may be held for a period (often 7-14 days) to account for refunds
- Payout Initiation: The platform transfers funds to your connected account
- Bank Processing: Funds appear in your account (1-3 business days)
Payout Schedules
- Daily: Funds transferred every business day
- Weekly: Aggregated payouts once per week
- Monthly: All earnings paid once per month
- On-Demand: Request payouts when you need them (may have fees)
Key Considerations
- Payment Gateway Fees: Understand what percentage is deducted
- Currency Conversion: International creators may face exchange rate fees
- Minimum Thresholds: Some platforms require minimum balances before payout
- Tax Implications: Track all payouts for accurate tax reporting
- Refund Impact: Refunded transactions reduce your payout balance
Best Practices
- Connect a business bank account for cleaner bookkeeping
- Set aside a percentage for taxes with each payout
- Monitor your payout dashboard regularly for discrepancies
- Understand the platform's refund and chargeback policies