Royalties on FavOS Marketplace
Understand how royalties work and how they can generate passive income from your digital products
On FavOS Marketplace, royalties allow creators to earn a percentage of each sale when their products are resold by other users. This creates a passive income stream that continues long after the initial sale.
How Royalties Work on FavOS
- Enable resell rights when listing your product
- Set your royalty percentage (0-50%)
- Buyers can resell your product on the marketplace
- You automatically receive royalties from each resale
Setting the right royalty percentage is crucial. Too high, and resellers won't be motivated to market your product. Too low, and you won't earn meaningful income from resales.
5-15%
Balanced royalty that incentivizes resellers while providing meaningful income
20-30%
Higher royalty for premium or unique products with strong demand
40-50%
Maximum royalty for exclusive products or when you're providing significant ongoing value
Example Royalty Calculation
Original product price: $100
Resale price: $80
Royalty percentage: 10%
Your royalty payment: $8 (10% of $80)
Marketplace fee: $8 (10% of $80)
Reseller earnings: $64 ($80 - $8 - $8)