Yes. After a premium domain is selected by a CH as the winner of their contest, the CH can choose to move forward by paying in full or starting an installment agreement (as long as the Creative has marked the domain as approved for installment payments).
Here is the process we follow if a premium domain is selected as the winner of a contest and then purchased on installment:
- The award amount is deposited in the Creative’s account.
- Once, and if, commissions from the domain sale exceed the award amount, the Creative will start receiving standard installment commissions.
Here is an example: A Creative wins a $100 contest with a premium domain listed at $1,299 with 36% commission.
The $100 award is deposited into the Creative’s account.
The payment plan commissions are calculated per the standard formula: $1,299 domain x 36% commission = $467.64 total commission. Divided by 6 installments = $78 per installment payment. However, $100 has already been deposited to the Creative’s account, so the remaining installment plan commission amount is $367.64.
Here’s how the remaining commissions are distributed: Once the CH pays the 2nd installment, the creative will receive two commission payments ($156) minus $100 award amount that was already received ($56).
The third through sixth installment will each result in a $78 commission.