R-04 · Glossary

Glossary

The terms FormaBase uses, in plain English. Where a term describes money, the Payout Rules and your signed agreement are the final word.

Terms

Affiliate: A person or company that promotes FormaBase products with product links and promo codes, and earns a share of the revenue from customers they refer.
Affiliate share: 50% of net receipts for service in a referred customer's first 12 months of paid service for a product. Paid before the Creator royalty.
Attribution: The record of which Affiliate referred a customer to a product. Set by a valid product link clicked within 30 days, or by a valid promo code at checkout, which takes priority.
Chargeback: A payment reversed by the customer's bank. Chargebacks and assessed dispute charges are deducted from net receipts, and reverse any share linked to them.
Commercial launch: The date FormaBase accepts a product for live sale, recorded in the product record. A Creator's 24-month royalty term starts here.
Core: The central FormaBase platform that owns identity, money and attribution for every product.
Creator: A person or company that builds a product approved by FormaBase, and earns a royalty on it for 24 months from its launch.
Creator royalty: 20% of a product's net receipts remaining after any Affiliate share, for 24 consecutive months from its commercial launch. Co-Creators share one 20% pool.
First paid-service date: The first day a customer receives paid service for a product. A free trial does not count. The Affiliate's 12 months are measured from this date.
Hard Fee List: The specific payment-processing, subscription-transaction, currency-conversion and dispute charges that may be deducted when calculating net receipts. Nothing else is.
Ledger: The append-only record of every amount earned, held, paid or reversed, stored in integer cents. Entries are never edited; corrections are new entries.
Net receipts: Money a customer has paid and that has cleared, for one product line, minus only taxes collected for a government, refunds and credits, chargebacks and dispute charges, and fees on the Hard Fee List. Also called Transaction Net Receipts, or TNR.
Payout Rules: The published rules that define net receipts, attribution, the order of payment, statements and versioning. Attached to every participant agreement.
Product record: The time-stamped record created when FormaBase approves a product: its scope, Creators, royalty split, launch date and the rules version that applies.
Promo code: A product-specific code an Affiliate shares. Entered at checkout, it attributes the customer to that Affiliate and takes priority over a link.
Reversing entry: A new ledger entry that offsets an earlier one, linked to it, used for refunds, chargebacks and corrections.
Royalty term: The 24 consecutive months, from commercial launch, during which a Creator earns a royalty on a product. It has no automatic renewal.
Rules version: The dated version of the Payout Rules that applies to a product or a referred customer. It is fixed when the product is approved or the customer is attributed.
SDK: The software kit products use to reach the Core: sign-in, access checks, checkout, email and events, through one key scoped to that product.
Service date: The day service is delivered. Shares accrue by service date, not by the date a customer pays.
Statement: A monthly report of a participant's earnings, holds, payments and reversals, with line detail.