How we calculate your Royalties - Earnings Algorithm Explained
By Zil Distribution
At Zil Distribution, we've developed a meticulous algorithm that ensures precise calculations and transparent dealings.
Step 1: Indexation Protocol
Every piece of data from music stores is indexed based on ISRC and UPC, broken down by Date, Country, Store, and Plan. Each line item shows the number of streams or usages alongside generated revenues in local currency.
Step 2: Data Formatting
We format the obtained data to ensure seamless access within our Front-End interface, prepping it for the subsequent revenue computation process.
Step 3: Hierarchical Auto-Splits
The Auto-Splits feature ensures accurate and customizable revenue allocation:
- Initial Deduction: Every revenue is first subject to Zil Distribution's fee
- Inactive Auto-Split: The entire net revenue goes to the Label
- Active Auto-Split: Labels determine revenue distribution at two levels:
- Album-Level: Aggregate revenues from all tracks, then distribute
- Track-Level: Each track's revenue is processed individually
- Stakeholder Distribution:
- Uniform Share: Assign a percentage to distribute stakeholder earnings
- Conditional Share: Incorporate a Start Limit, redirecting royalties to the Label until total earnings surpass it
Step 4: Revenue Allocation
An aggregation operation calculates each track's gross revenue. Zil's fee is subtracted, deriving the net revenue. The Auto-Split functionality retrieves the Label's pre-configured directives for proportional allocation. All data is registered in an auditable ledger database.
Users can access this data through the Accountability Report in the Statements section.
Step 5: User Balance Calculation
The Transactions model emulates meticulous banking accounting. It involves aggregation of royalties, credits, and deductions for advanced payments and withdrawals.
Users can access this data from the Transactions section under Statements.