The procedure to distribute the income from the primary sales of your songs, videos or other releases among several artists is quite simple to perform.
At the time of the release, when you select the collection within which you will create the Drop, the possibility of defining the income split from the primary sales will appear (if necessary, see How do I create collections that allow me to make Drops of Music and collectible items with 1155 and 721 contracts?).
So, choose the collection:
As you can see in the following image, once the collection is selected, you will be able to define the “Income Split” field to define the distribution from primary sales. Meanwhile, in the “Trading royalties” field, you can define the profit split for secondary sales.
What are primary sales?
In SPOZZ, artists can sell copies of different types of licenses for their songs. For example, the “Personal Use” license will allow the buyer unlimited listening to that song in the SPOZZ streaming app. Meanwhile, the “Non-Exclusive Commercial Rights” license allows buyers not only to listen to the song but also to share in the profits that plays of that song on the SPOZZ app may generate.
Artists can enable the creation of tens or millions of copies, which will be created the moment someone decides to purchase them.
What are secondary sales?
Those who purchase such licenses can resell them on the SPOZZ marketplace and/or other marketplaces that currently or in the future have this technology available.
The artists can define what percentage they will receive for these secondary sales and all subsequent resales that may be generated over the months and years.
How is the income split from primary sales defined?
To define the percentage distribution, click on the “Add initial sales” button:
Then, the following window will be displayed where you will have to incorporate the wallets that correspond to the different artists and/or producers.
Initially, you will see that the creator's wallet will take 100 percent, but you can change this when you add the other wallets.
Of course, the total percentage must always be equal to 100 percent (this 100 percent includes the total to be distributed among the artists and/or producers, i.e., for example, this calculation does not include the 5 percent that SPOZZ gets from primary sales).
Attention! As you can see in the following notice, once you launch the Drop you will not be able to modify the percentages, so agree on the percentage with other artists and producers before launching.
How is the distribution of royalties on secondary sales defined?
The royalties from secondary sales is defined in a similar way in the “Trading royalties” field, with the difference that the maximum to be distributed among artists and/or producers is 10 percent. In other words, the person who buys the copy and resells it will get at least 90 percent of the price at which the item is sold. And the same will occur with subsequent sales.
As can be seen in the following image, the wallets indicated for royalties should not necessarily be the same as those indicated for the distribution of primary sales (although they could also be repeated if so decided by the creators of the release).
How will the income from primary and secondary sales reach the various wallets?
A few seconds after each purchase or resale of each of these items is made, the wallets indicated will receive the established percentage.
This dissemination will be done through the blockchain, which ensures that neither SPOZZ nor any artist and/or producer will be able to alter the distribution defined at the time of creating the release.
Each wallet will receive its percentage income for each sale or resale, no matter how small or large it may be:
It is worth mentioning that the Polygon network allows this distribution to be made very cheaply to wallets in different parts of the world, without barriers, even if the amount is a fraction of cent of a dollar or millions of dollars.
In the future, SPOZZ will continue to include more networks that also allow payments to be made very cheaply, but today the Polygon network can already be used.
Meanwhile, developments are underway to allow users to purchase and resell such copies by credit card and in traditional currencies, although the blockchain technology will facilitate immediate distribution to artists and producers around the world.