/00Glossary

What is Platform fee?

The percentage a creator-economy platform charges per sale on top of the gateway fee — distinct from a monthly subscription.

The longer answer.

Platform fees are the per-sale percentage charged by a creator platform in addition to (or instead of) a monthly subscription. Gumroad's flat 10% is a platform fee. Kavieo's 5% (Free) → 1% (Studio) is a tiered platform fee. Razorpay's 2-3% gateway fee is separate and goes to Razorpay. Total cost = platform fee + gateway fee. On ₹1L/mo revenue, total cost on Kavieo Builder is approximately ₹4,500 (3% platform + 2.5% gateway), versus Gumroad's ₹12,000+ (10% platform + 2.5% gateway). The platform-fee structure heavily influences which platform makes sense at which revenue band.

Defined by

Priyanshu Kumar — Founder of Kavieo

Part of the Kavieo Creator Economy Glossary, written from inside the platform. Cross-references to related terms below.

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