Effective Date: October 1, 2011
Our service is free to you as the artist – there are no signup or hidden costs, and no subscription fees. We charge a 10% revenue sharing fee per sale (which is paid by your customer). Our goal is to help you achieve the highest return possible, thus we use the Paypal Micropayment Service. Why Paypal? We feel PayPal's existing security, offers a faster, safer and more cost-effective way to send and receive micropayments which are payments under $12. PayPal for digital goods has competitive fees for micropayments pricing of 5 percent plus 5 cents for purchases under $12. This is actually lower than fees typically charged by payment processors in the Digital Goods industry.
Example of Micropayment Rate A $1.00 download: $1.00 x 5.0% + $0.05 (paypal fee) is equivalent to $1.00 - $0.10 = $.90 (after Paypal fee) - 10% or $.10 (Ragtube fee) = $0.80 (profit sent to the artist) meaning there was $.20 paid in fees.
The revenue share rate is based on individual sales per email address, and account associated with our services. So if you’re a label, and have seven artist using a specific PayPal address to a specific account, your rate will be calculated based on indivudal sales.
Currently we have no plans, nor future plans on working with any distribution companies.
Currently we only offer digital sales.
PayPal's standard transaction fee is 2.9% + $0.30 USD. There are two ways you can lower that fee: a. PayPal offers a micropayments rate of 5% and 5¢ per transaction, which ends up being a better deal if most of your transactions are $12 USD or less. You can sign up for micropayments at any time. There's nothing to do on Ragtube; just head to the PayPal Micropayments site and sign up (note that PayPal’s micropayments site doesn’t work properly in Safari -- you’ll need to use either Firefox or IE). You can switch back to the standard rate at any time by contacting PayPal; also, be aware that PayPal allows you to use only one rate at a time. After you switch a PayPal account to micropayments, all items sold via that account (through Ragtube or elsewhere) will use the new rate. If you happen to sell a lot of items priced more than $12 USD, you'll notice the micropayments fee will be a bit higher than the standard fee. (One way to work around this restriction is to use two PayPal accounts, one with micropayments for your Ragtube sales, and another with the standard rate for the other, higher-priced transactions.); b. apply for merchant rate pricing. Depending on your monthly volume, PayPal's rate can be as low as 1.9% + $0.30 USD.
When a fan makes a purchase, the money flows directly from them into whatever PayPal account you specify (Ragtube doesn't hold your money).
It is your responsibility and solely your responsibility to remit the appropriate taxes (income, sales, VAT, property, estate or otherwise) to the appropriate taxing agency. We recommend that you consult your personal tax advisor regarding the best approach.
You may contact Company at the following address: team at ragtube dot com.