Whether or not you should cover the BeatStars service fee depends on a few factors. Here’s a breakdown to help you decide:
What is the BeatStars Service Fee?
BeatStars charges a 12% service fee to buyers on top of your listed beat price. This fee helps cover the costs of operating and maintaining the platform.
Factors to Consider When Deciding to Cover the Fee
Pricing Strategy: How are your beats priced compared to similar producers? Covering the service fee might make your beats appear more competitive if they are already higher priced than the average.
Target Audience: Are you aiming for budget-conscious buyers or those willing to pay premium prices? Budget-conscious buyers may be more likely to purchase if they don’t have to pay an additional fee.
Promotion and Visibility: Covering the service fee can create a more streamlined buying experience, resulting in higher conversion rates and increased visibility for your beats.
Profit Margins: Can you absorb the 12% cost while still maintaining your desired profit margin?
Advantages of Covering the Service Fee
Simplified Pricing: Customers appreciate transparent pricing and dislike encountering unexpected fees at checkout.
Higher Visibility: Buyers may be more likely to engage with and purchase your beats.
Increased Customer Satisfaction: A smoother buying process creates happy customers.
Disadvantages of Covering the Service Fee
Reduced Profit: Your profit margin per sale will be decreased by the 12% absorbed fee.
How to Cover the Fee
Go to your BeatStars Studio
Click on Account Settings –> Payout Accounts
Edit your desired service fee option. BeatStars allows passing various levels of the fee on to the customer.
Ultimately, the decision is yours. Here are some things to consider:
If you’re still building an audience and want to offer competitive prices, absorbing the fee might be a good short-term strategy.
If you have established yourself and command higher prices, perhaps your customers won’t mind the added fee.
You can experiment with different options to see how buyers respond and ultimately choose a strategy that makes the most sense for your beat-selling business on BeatStars.