Understanding Profit Sharing
- Miles Graves
Profit Sharing is a feature of the Payrix platform that allows multiple entities to split income, expenses, or both. This flexible feature allows Facilitators, Referrers, and Merchants to optimize their profit-sharing strategies for mutual growth and success.
Profit Sharing can be used to designate a percentage of split for income, expenses, or both, and can be assigned to Merchants individually or to multiple Merchants enrolled in a Group. It is recommended that you create a profit share for a group for ease of access; however, you can also set up a new profit share with a single Merchant.
Note: If a transaction is associated with a profit share, a new entry is created that splits the amount based off of the profit share parameters.
Example: If a Merchant performs a transaction that generates income, you can set a profit share that distributes a portion of that income to another entity. On the other hand, profit sharing can be used for expenses or in a "debit" format, allowing Referrers and Facilitators to split costs associated with Merchants whenever needed.