The process of distributing primary and secondary sales income for songs, videos, or other releases among multiple artists is straightforward.
During the release process, in the second step, the option to distribute income from primary sales appears in the "Income Split" field.
By clicking on "Add initial sales", the following window will appear. Initially, 100% of the income from primary sales will go to the creator’s wallet. If the creator clicks "Save", this allocation will be finalized, and the percentages cannot be changed later.
However, the creator also has the option to split income from primary sales. Similarly, in the "Trading royalties" field, creators can define the revenue share for secondary sales.
What Are Primary Sales?
On SPOZZ, artists can sell copies of different types of licenses for their songs. For example, the "Music Lover" license allows buyers to stream the song unlimitedly on the SPOZZ app, while the "Super Fan" license enables buyers not only to stream the song but also to participate in the revenue generated by that song’s plays on the SPOZZ app.
Artists can make dozens or millions of copies available, which are created as soon as someone decides to purchase them.
What Are Secondary Sales?
Buyers of these licenses can resell them on the SPOZZ marketplace and/or other marketplaces that currently or in the future support this technology.
Artists can define what percentage they will receive from these secondary sales, as well as any subsequent resales that may occur over months or years.
How to Define the Distribution of Income From Primary Sales
To define the percentage distribution, you’ll need to add the wallets of all other creators, producers, etc., and set the percentage that each will receive. The defined percentages cannot be changed in the future.
The total percentage must always equal 100% (this 100% represents the total to be distributed among the artists and/or producers; for example, the 5% platform fee collected by SPOZZ for primary sales is not included in this calculation).
Important: As shown in the following notice, once the Drop is launched, you will not be able to modify the percentages. Therefore, agree on the distribution with other artists and producers before completing the release.
How to Define the Distribution of Income From Secondary Sales
The distribution of income from secondary sales is defined similarly in the "Trading royalties" field. The key difference is that the maximum percentage to be distributed among artists and/or producers is 10%. This means that the person buying and reselling the copy will retain at least 90% of the price they sell it for. The same applies to subsequent sales.
As shown in the following image, the wallets specified for royalties do not necessarily need to be the same as those specified for primary sales distribution (although they can be the same if the creators of the release decide so).
How Will Primary and Secondary Sales Income Be Distributed to the Wallets?
A few seconds after each purchase or resale, the indicated wallets will receive their defined percentage.
This distribution is processed through blockchain technology, ensuring that neither SPOZZ nor any artist and/or producer can alter the revenue distribution set during the release.
Each wallet will receive its proportional income for every sale or resale, no matter how small or large the amount is.
The Polygon network allows this distribution to be carried out very economically, reaching wallets worldwide without barriers—even for fractions of a cent or millions of dollars.
In the future, SPOZZ will continue to add more networks that facilitate similarly low-cost payments.
Additionally, SPOZZ has enabled users to buy and resell these copies without needing a crypto-compatible wallet. Users can make purchases with credit cards and traditional currencies, while blockchain technology ensures secure and instant distribution to artists, creators, and producers worldwide.