A message from Frank Podlaha, CEO
Many of you have probably noticed the new Payout Percentage we now display on the StreetJelly BuyTokens page. On the right hand side, we show a running average of the amount of cash that we pay back to musicians from the tokens purchased by fans. Let me explain a little deeper how it all works.
We do things a little differently on StreetJelly than most sites. Instead of just tipping in US Dollar amounts, we use tokens (and Rocker Pin awards) to show our love to the musicians. Each tipped token is always paid out at 16¢ (US). However, we sell those tokens for various prices depending on the size of the package a fan purchases. People like a deal when they buy in bulk. No difference with our tokens. The more you buy, the better price you get. The percentage of the money that goes to the musicians then varies depending on which package is purchased. The tokens vary in sale price from 32¢ to 20¢ (or 50% to 80% payout).
Of course, different people buy different packages. If we average out all the packages sold, we consistently get a payout above 70%. It’s been like that from the very beginning. We have just as many fans buy the larger token packages as do the smaller ones.
However, this is not the complete picture because we also give away tons of free tokens with promo-codes, contests, and other events. Think for a minute what happens when you get a promo-code worth 25 Free Tokens. Those extra tokens still become real cash that we payout to musicians. For example: if you buy the smallest package of 25 tokens at $8 with that promo, you actually receive 50 tokens (25 purchased + 25 free). The payout to the musicians becomes $8, or 50 x .16 = $8. 100% of your purchase goes to the musicians. Cool, huh!?
We are displaying that full Payout Percentage on the BuyTokens page. It’s a running average over the past 30 days, and includes all the extra tokens we give away. On a side note: it does NOT include any fees/royalties we payout to the songwriters associations (BMI, ASCAP, etc). Those artists get their piece of the pie from our revenue, not the musicians. It’s our obligation to take care of that portion.
We are very proud that our true Payout Percentage is running in the mid-80s! It is our goal to always keep that at or above 80% and still stay in business.
Thank you for all the support!
~Frank Podlaha, CEO – a.k.a. Frankie