How Commission & Processing Fees Work
Fee Overview
Starting Line uses a transparent, revenue-based fee structure:
- Processing Fee: Covers payment gateway costs (Ozow)
- Platform Commission: For using the platform and its features
- Both decrease as your event revenue grows (tiered system)
💡 Fair Pricing: Our tiered system means larger events pay lower percentages, making the platform accessible to all event sizes.
Processing Fees
Processing fees cover the cost of secure online payments:
What's Included
- Ozow instant EFT payment processing
- Secure payment gateway
- PCI-DSS compliance
- Fraud protection
- Bank transfer costs
Rate Structure
Processing fees are calculated in basis points (bps), where 100 bps = 1%:
- Tier 1: 2.85% (285 bps)
- Tier 2: 2.75% (275 bps)
- Tier 3: 2.65% (265 bps)
- Tier 4: 2.65% (265 bps)
Platform Commission
Platform commission supports our development and operations:
What You Get
- ✅ Event hosting and management platform
- ✅ Participant registration system
- ✅ Automated email confirmations
- ✅ WhatsApp notifications
- ✅ Real-time financial dashboard
- ✅ Participant management tools
- ✅ Merchandise sales system
- ✅ 24/7 technical support
- ✅ Regular platform updates
Commission Rates
Commission decreases as your cumulative event revenue grows:
- Tier 1: 4.00% (400 bps)
- Tier 2: 3.50% (350 bps)
- Tier 3: 3.00% (300 bps)
- Tier 4: 2.50% (250 bps)
Tiered Pricing System
Your fees decrease as your cumulative event revenue grows:
Revenue Tiers
| Tier | Cumulative Revenue | Processing Fee | Commission | Total |
|---|---|---|---|---|
| Tier 1 | R0 - R250,000 | 2.85% | 4.00% | 6.85% |
| Tier 2 | R250,001 - R500,000 | 2.75% | 3.50% | 6.25% |
| Tier 3 | R500,001 - R1,000,000 | 2.65% | 3.00% | 5.65% |
| Tier 4 | Above R1,000,000 | 2.65% | 2.50% | 5.15% |
How Tiering Works
Your tier is determined by your lifetime cumulative revenue across all your events:
- Start in Tier 1 with your first event
- As revenue accumulates, you automatically move to higher tiers
- Once you reach a tier, you stay there (never downgrade)
- New events benefit from your current tier immediately
🎯 Volume Incentive: The more events you run successfully, the lower your fees become!
Calculation Examples
Example 1: Small Event (Tier 1)
Event Revenue: R50,000
Processing Fee (2.85%): R1,425
Platform Commission (4.00%): R2,000
Total Fees: R3,425 (6.85%)
You Receive: R46,575
Example 2: Medium Event (Tier 2)
Event Revenue: R350,000
Processing Fee (2.75%): R9,625
Platform Commission (3.50%): R12,250
Total Fees: R21,875 (6.25%)
You Receive: R328,125
Example 3: Large Event (Tier 4)
Event Revenue: R1,500,000
Processing Fee (2.65%): R39,750
Platform Commission (2.50%): R37,500
Total Fees: R77,250 (5.15%)
You Receive: R1,422,750
What Fees Apply To
Fees are calculated on:
- ✅ Distance/entry fees
- ✅ Merchandise sales
- ✅ Temporary license sales
- ✅ Any other event-related revenue
Fees do NOT apply to:
- ❌ Refunds (you're not charged on refunded amounts)
- ❌ Cancelled registrations
💰 Pricing Strategy: When setting your event prices, factor in these fees to ensure you meet your revenue targets.