Important Update: Changes in Commission Structure – How Timely Payments Benefit You
Changes Effective from Date: 05-Jan-2025
At Money Club, we continuously strive to improve the experience for our users. We have revised our commission structure to facilitate faster fund transfers, effective on the Money Club platform from 05-Jan-2025. These updates are designed to benefit both the payers and the receivers, especially those who make payments faster!
In this blog, we’ll explain the changes and show you how making timely payments can save you money. Our aim is to reduce the waiting time for the receiver (bid winner) and reward quicker transfers with lower commissions.
What’s Changing?
User commission is calculated based on the following three factors:
- Real Clubs Closed (Number of real clubs you close)
- Contribution Amount (The amount you contribute)
- WATT (Weighted Average Transfer Time) (The time it takes for the transfer to be completed)
The key change lies in WATT (the time taken for the transfer). In the new structure, faster payments result in lower commissions!
Here’s how it works:
- Faster payments = Lower commission.
- Slower payments = Higher commission.
We want to encourage quicker payments so the person receiving the payment (like the bid winner) doesn't have to wait too long. To make this happen, we’ve set up a new system based on how quickly you transfer the money after the bid closes.
Old Commission Structure vs. New Commission Structure
1. Real Clubs Closed (No Change in this table)
|
Real Clubs Closed |
Commission(%) |
|
0-3 |
5% |
|
4-6 |
2.5% |
|
7-9 |
2.25% |
|
10-11 |
2% |
|
12-15 |
1% |
|
16-20 |
0.75% |
|
20+ |
0.5% |
2. Contribution Amount (No Change in this table)
|
Amount transacted so far(₹) |
Commission(%) |
|
0-20,000 |
5% |
|
20,001-35,000 |
3.5% |
|
35,001-75,000 |
2.5% |
|
75,001-1,00,000 |
2% |
|
1,00,001-1,50,000 |
1% |
|
1,50,001-2,00,000 |
0.75% |
|
2,00,001+ |
0.5% |
3. WATT - Wt. Avg. Transfer Time (This is the Updated table)
The main change is in the Wt. Avg. Transfer Time table. The faster the transfer, the lower the commission you will pay. Let's take a look at the new WATT-based commission structure.
|
Wt. avg. transfer time(Hrs) |
Commission(%) |
|
0-0.5 |
0 |
|
0.5-1 |
0.1 |
|
1.1-1.5 |
0.25 |
|
1.5-2 |
0.5 |
|
2.1-2.5 |
0.75 |
|
2.5-3 |
1 |
|
3-3.5 |
1.25 |
|
3.5-4 |
1.5 |
|
4-5 |
2 |
|
5-6 |
2.5 |
|
6-7 |
3 |
|
7-8 |
4 |
|
8-9 |
5 |
|
9-12 |
7 |
|
12-15 |
85 |
|
15-18 |
9 |
|
18+ |
10 |
Example
To help you understand how the new commission structure works, let us assume:
- Real Clubs Closed by you = 11
- Amount transacted by you = INR 80,000
- Your WATT = 1.5 hours
User Commission calculation as per the Old Commission Structure:
To help you understand how the new commission structure works, let us assume:
- Real Clubs Closed Commission: 2%
- Contribution Amount Commission: 2%
- WATT Commission: 1%
- User Commission = (2+2+1)/3 = 1.67%
User Commission calculation as per the New Commission Structure:
To help you understand how the new commission structure works, let us assume:
- Real Clubs Closed Commission: 2%
- Contribution Amount Commission: 2%
- WATT Commission: 0.25%
- User Commission = (2+2+0.25)/3 = 1.42% (commission reduced)
Conclusion
With the new commission structure, the faster you pay, the lower your commission will be! Money Club is rewarding timely payments to help you receive the funds more quickly whenever you win a bid.So, next time you make a payment, try to complete the transaction faster and save money on commission! If you have any further questions, feel free to reach out to our support team. We are always here to assist you! Thank you for being a part of Money Club!
Moreover, the new sum of all the weights will be:
Sum of all weights = 5*(n-9)*(n-10)/7
Hence the new formula to calculate WATT will be:
WATT = [W1*(transfer time of 1st transaction)+W2*(transfer time of 2nd transaction)+……..+W(n-9)*(transfer time of (n-9)th transaction)+W(n-8)*(transfer time of (n-8)th +transaction)+W(n-7)*(transfer time of (n-7)th transaction)+……..+W(n)*(transfer time of nth transaction)]/[5*(n-9)*(n-10)/7]
For example, suppose there are total 70 transactions and the transfer time and the weight of the transactions are as given in the below table:
|
Sr. No. |
Transfer time (in hours) |
Weight |
formula used |
Transfer time * Weight |
|
1 |
1 |
1 |
– |
1 |
|
2 |
3 |
2 |
– |
6 |
|
3 |
12 |
3 |
– |
36 |
|
4 |
5 |
4 |
– |
20 |
|
5 |
4 |
5 |
– |
20 |
|
6 |
3 |
6 |
– |
18 |
|
7 |
4 |
7 |
– |
28 |
|
8 |
7 |
8 |
– |
56 |
|
9 |
1 |
9 |
– |
9 |
|
10 |
2 |
10 |
– |
20 |
|
. |
. |
. |
. |
. |
|
Taking transfer time for 10th to 60th transaction as 2 hour each. |
||||
|
. |
. |
. |
. |
. |
|
60 |
2 |
60 |
– |
120 |
|
61 |
2 |
74 |
[3*(n-9)*(n-10)-630]/140 |
148 |
|
62 |
1 |
75 |
{[3*(n-9)*(n-10)-630]/140}+1 |
75 |
|
63 |
5 |
76 |
{[3*(n-9)*(n-10)-630]/140}+2 |
380 |
|
64 |
2 |
77 |
{[3*(n-9)*(n-10)-630]/140}+3 |
154 |
|
65 |
2 |
78 |
{[3*(n-9)*(n-10)-630]/140}+4 |
156 |
|
66 |
1 |
79 |
{[3*(n-9)*(n-10)-630]/140}+5 |
79 |
|
67 |
2 |
80 |
{[3*(n-9)*(n-10)-630]/140}+6 |
160 |
|
68 |
1 |
81 |
{[3*(n-9)*(n-10)-630]/140}+7 |
81 |
|
69 |
1 |
82 |
{[3*(n-9)*(n-10)-630]/140}+8 |
82 |
|
70 |
1 |
83 |
{[3*(n-9)*(n-10)-630]/140}+9 |
83 |
|
|
|
|
|
SUM = 5162 |
Each transfer time is multiplied to it’s weight to get the weighted transfer time.
Sum of the weighted transfer times = 5162
Sum of all weights = 5*(n-9)*(n-10)/7 = 5*(70-9)*(70-10)/7 = 2614
WATT (Weighted Average Transfer Time) = 5162/2614 = 1.97 hours
This new calculation of WATT will help the money clubbers to improve their WATT faster and reduce their commission.
