Creator Finance Glossary
Plain-language definitions for the financial terms you actually encounter when selling online. No jargon, no fluff.
ARR (Annual Recurring Revenue)
MRR multiplied by 12. If your MRR is $500, your ARR is $6,000. Used to express the annualized value of your recurring revenue base.
Chargeback
When a customer disputes a charge with their bank and the payment is reversed. You lose the sale amount plus a chargeback fee (typically $15). Chargebacks hurt more than refunds because of the extra fee and the hit to your account standing.
Cash Flow
The net movement of money in and out of your business over a period. Positive cash flow means more money came in than went out. For solopreneurs, cash flow accounts for revenue, fees, expenses, and payout timing — revenue alone does not tell you if you can pay next month's bills.
Fee Drain
The total amount lost to platform and processing fees over a period. A 7.8% fee drain on $10,000 gross means $780 went to platforms — not to you. Small percentages compound into real money over months.
Gross Revenue
The total amount customers pay before any deductions. If someone buys your course for $99, your gross revenue is $99 — regardless of what the platform takes.
Merchant of Record (MoR)
The entity that is legally responsible for the transaction. Platforms like Lemon Squeezy and Paddle act as the MoR — they handle sales tax, VAT, and refunds on your behalf. Stripe does not: you are the MoR when using Stripe directly.
MRR (Monthly Recurring Revenue)
The predictable revenue you receive every month from active subscriptions. If you have 50 members paying $10/month, your MRR is $500. MRR only counts recurring charges — one-time purchases are excluded.
Multi-Platform Revenue
Revenue earned across more than one selling platform simultaneously. A creator might sell courses on Teachable, memberships on Patreon, and digital products on Gumroad. Tracking multi-platform revenue requires combining data from each platform's different fee structures, payout schedules, and reporting formats.
Net Revenue
What you keep after platform fees and payment processing fees are deducted, but before your own business expenses. If you gross $99 and the platform takes $9.70, your net revenue is $89.30.
OAuth (Read-Only)
An authorization standard that lets Owelet read your transaction data from platforms like Stripe and Gumroad without ever seeing your password. 'Read-only' means Owelet can view your data but cannot make changes, issue refunds, or move money.
Platform Fees
The percentage or fixed amount a platform charges per transaction. Gumroad charges 10%, Stripe charges 2.9% + 30 cents, Patreon charges 5-12% depending on your plan. These fees are deducted before you receive your payout.
Payment Processing Fees
The fees charged by the underlying payment processor (Stripe, PayPal) for handling the credit card transaction. Typically 2.9% + $0.30 per transaction. Some platforms bundle this into their fee; others charge it on top.
Payout
The transfer of your earnings from the platform to your bank account. Payout schedules vary: Stripe pays in 2 business days, Gumroad every Friday, Patreon on the 1st-5th of each month. A payout is not revenue — it is money you already earned being moved.
Refund
A voluntary return of payment to the customer. Most platforms refund the customer in full but do not refund the platform fee to you. A $99 sale refunded on Gumroad costs you the $9.90 platform fee — you lose money on the transaction.
Runway
How long your business can operate at current spending levels with the cash you have. If you have $6,000 in the bank and spend $2,000/month, your runway is 3 months. Owelet's 90-day cash flow forecast helps you see your runway in real time.
Sales Tax / VAT
Government-mandated tax on sales. Digital products are taxable in most US states and in the EU (VAT). If you use a MoR platform, they handle collection and remittance. If you sell via Stripe directly, you may be responsible for it yourself.
Take-Home Rate
The percentage of gross revenue you actually keep after all fees. If you gross $1,000 and keep $920 after fees, your take-home rate is 92%. This is the single most important number for comparing platforms.