Net sales is what remains after returns, cancellations and discounts are deducted from gross sales. Agency fees, commissions and any real performance measurement are calculated on this figure; anything based on gross sales flatters reality.
The Turkal Partners fee model also works on net sales: the figure used is net of returns, cancellations and platform refunds. In high-return categories the gap between gross and net sales can reach 30%; ignore that gap and both agency and brand make the wrong call.
Net sales = Gross sales − Returns − Cancellations − Discounts
$100,000 gross, $18,000 in returns, $4,000 in cancellations → $78,000 in net sales.
The Turkal Partners fee model also works on net sales: the figure used is net of returns, cancellations and platform refunds. In high-return categories the gap between gross and net sales can reach 30%; ignore that gap and both agency and brand make the wrong call.
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