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Service Fee Calculation
Encore's service fee is 20% of the total payment made by the customer.
It's essential to note that Encore does not add an extra 20% on top of your net fee. This is a common misconception of how commission works, and works out as different numbers.
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Changes to quoting (August 2023)
Pre-August 2023, you were asked to provide a Total Quote, and Encore would provide you with a breakdown of your Net fee and Service fee.
You're now asked to provide the Net fee, and we work out the total quote. This gives you more control over how much you earn for each gig, but the percentage breakdowns haven't changed.
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Understanding the Calculation:
To clarify, let's break it down with an example:
1. Simple Scenario:
- Total Quote - £5 (what you used to quote)
- 80% Net fee - £4 (what you now quote)
- 20% Service fee - £1 (this is 20% of the customers' payment, not 20% of your earnings)
2. Complex Scenario:
- Total Quote - £3062.50
- 80% Net fee - £2450 (what you quote)
- 20% Service fee - £612.50 (this is 20% of the customers' payment, not 20% of your Net fee)
In essence, the service fee is derived by calculating 20% of what your Net fee is. It's important to understand that you don't add 20% on top of your Net fee - these are two separate figures. A strange quirk of maths!
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Why do we ask Musicians to provide a quote for 80%?
We acknowledge that calculating the service fee this way can be confusing, especially when compared to the previous method where we only asked for the total quote.
The key takeaway is that the 20% service fee is always based on the total payment made by the customer, not on your earnings.
The percentages haven't changed at all, but we now prefer to give the musician the ability to quote the amount you want to take home instead of the amount you want to earn plus Encore's take. We think this gives you far more control of your earnings.
If you have any further questions or need assistance with your quotes, please don't hesitate to reach out to our support team at help@encoremusicians.com 📧