Usage-Based Billing Explained

Growth plan uses usage-based billing: you pay based on the revenue DemandLoop helps you recover. This guide explains exactly how attribution tracking and billing work.

The Billing Model

Two Components

1. Base Fee: $19/month

• Fixed monthly charge
• Covers unlimited usage (subscriptions, notifications)
• Charged on your Shopify billing cycle

2. Commission: 2% of Attributed Orders

• Variable charge based on performance
• Only charged when DemandLoop drives sales
• Capped at $500/month total (base + commission)

Formula:

Monthly charge = $19 + (2% × Attributed Revenue)
Maximum charge = $500/month

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What Is "Attributed Revenue"?

An order is attributed to DemandLoop when:

1. Customer receives back-in-stock email
2. Customer clicks the product link in email
3. Customer completes purchase within 7 days
4. Order is paid (not cancelled or refunded)

This is called 7-day last-click attribution — industry-standard for email marketing.

Real-World Example

Timeline:

Monday 10:00am — Product restocks
Monday 10:01am — Customer receives email: "Nike Shoes back in stock!"
Monday 11:30am — Customer clicks link
Monday 11:45am — Customer completes $120 purchase

Result:

• Order attributed to DemandLoop
• Your commission: $120 × 2% = $2.40

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The 7-Day Attribution Window

Why 7 Days?

Customers don't always buy immediately:

• They compare prices
• They wait for payday
• They think about the purchase
• They check reviews

7 days is fair and industry-standard:

• Long enough to capture genuine conversions
• Short enough to avoid false attribution
• Matches email marketing benchmarks

Window Examples

Scenario 1: Quick buyer

Day 1, 10am — Email sent & clicked
Day 1, 11am — Purchase completed
Attributed (1 hour conversion)

Scenario 2: Thoughtful buyer

Day 1 — Email sent & clicked
Day 3 — Customer returns and buys
Attributed (within 7 days)

Scenario 3: Window expired

Day 1 — Email sent & clicked
Day 9 — Customer finally purchases
Not attributed (8 days = outside window)

Scenario 4: No click

Day 1 — Email sent (never clicked)
Day 2 — Customer visits store and buys
Not attributed (no click)

Multiple Clicks

If customer clicks multiple times within 7 days, the window extends from the last click.

Example:

Day 1 — Click #1 (starts 7-day window)
Day 5 — Click #2 (resets window, now expires Day 12)
Day 8 — Purchase completed
Attributed (within 7 days of last click)

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What Counts Toward Commission?

Included in Attribution

Order subtotal — Product prices only Product variants — All variants in order Multiple products — Full cart value if contains restocked item Discounts applied — Counted at final price paid

Excluded from Attribution

Shipping costs — Not included in commission base Taxes — Not included in commission base Tips — Not included in commission base Refunded orders — Commission refunded if order refunded

Order Value Calculation

Customer's cart:

Nike Shoes (restocked item): $100
Socks (added to cart): $15
Subtotal: $115
Shipping: $10
Tax: $12
Total: $137

Your commission:

Commission base: $115 (subtotal only)
Commission: $115 × 2% = $2.30

Important: Even though customer paid $137, commission is calculated on $115 product subtotal—shipping and tax are excluded.

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Multi-Product Orders

If customer adds multiple products to cart, the entire order is attributed if any product was from a back-in-stock notification.

Example Scenario

Customer journey:

1. Receives email: "Shirt back in stock!"
2. Clicks link, views shirt
3. Adds shirt ($50) to cart
4. Continues shopping, adds jeans ($80)
5. Completes purchase: $130 total

Attribution:

• Full order attributed: $130
• Your commission: $130 × 2% = $2.60

Why full order? The back-in-stock email brought the customer to your store. Without that notification, they wouldn't have made any purchase.

This is fair to you as a merchant—DemandLoop helped recover the entire sale, not just one product.

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Monthly Cap Protection

The $500 Maximum

You'll never pay more than $500/month, regardless of attributed revenue.

Real-world scenarios:

Low revenue month:

Base fee: $19
Attributed revenue: $1,000
Commission: $1,000 × 2% = $20
Total: $39

Medium revenue month:

Base fee: $19
Attributed revenue: $10,000
Commission: $10,000 × 2% = $200
Total: $219

High revenue month:

Base fee: $19
Attributed revenue: $50,000
Commission: $50,000 × 2% = $1,000
Cap applied: $500 maximum
Total: $500 (you save $519!)

Very high revenue month:

Base fee: $19
Attributed revenue: $100,000
Commission: $100,000 × 2% = $2,000
Cap applied: $500 maximum
Total: $500 (you save $1,519!)

When Cap Matters

The cap protects you when DemandLoop performs exceptionally well.

Break-even point:

$500 cap reached when:
$19 + (Revenue × 2%) = $500
Revenue × 2% = $481
Revenue = $24,050

Meaning: Once you attribute $24,050+ in a month, the cap kicks in. Everything above that is free.

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How Charges Appear

Shopify Billing Integration

All DemandLoop charges flow through Shopify—you never pay us directly.

Charge Types:

1. Recurring Charge (Base Fee)

Charge: $19.00
Description: "DemandLoop Growth Plan"
Frequency: Monthly
Appears: On Shopify invoice

2. Usage Charges (Commission)

Charge: $45.32
Description: "DemandLoop Usage - Attributed Orders"
Period: January 1-31, 2025
Appears: On Shopify invoice

Charge Timing

Base fee ($19):

• Charged immediately on upgrade
• Recurring monthly on billing date
• Pro-rated if you upgrade mid-cycle

Usage charges:

• Created when orders attribute
• Batched and charged monthly
• Appears as single line item on Shopify bill

Example monthly Shopify invoice:

DemandLoop Growth Plan: $19.00
DemandLoop Usage (34 orders): $127.50
Total DemandLoop charges: $146.50

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Viewing Your Usage

Attribution Dashboard

Access detailed billing breakdown:

Dashboard → Billing & Attribution

You'll see:

Current Month Usage:

• Total attributed orders
• Attributed revenue
• Current usage charges
• Progress toward $500 cap

Usage Ledger:

• Individual attributed orders
• Order dates and values
• Commission per order
• Running total

Example view:

Current Month: January 2025

Attributed Orders: 23
Attributed Revenue: $3,450.00
Usage Charges: $69.00 (2%)
Base Fee: $19.00
Total This Month: $88.00

Cap Status: 17.6% ($88 / $500)

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Refunds & Adjustments

Order Refunded

If customer refunds an attributed order, your commission is refunded too.

Process:

1. Customer requests refund
2. You process refund in Shopify
3. DemandLoop detects refund webhook
4. Usage charge credited back
5. Shows in next month's billing

Example:

Order attributed: $100 → Commission $2.00
Order refunded fully
Credit applied: -$2.00
Net commission: $0

Partial Refunds

If customer returns some items, commission is adjusted proportionally.

Example:

Original order: $100 → Commission $2.00
Partial refund: $30 returned
Adjusted order value: $70
Adjusted commission: $1.40
Credit applied: -$0.60

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Comparing to Flat-Rate Pricing

Why Usage-Based Is Better

Many apps charge flat rates ($49/mo, $99/mo) regardless of performance.

DemandLoop's model:

Small store example:

• Attributed revenue: $1,000/month
• Your cost: $19 + $20 = $39/month
• Competitor flat rate: $49/month
• You save: $10/month

Growing store example:

• Attributed revenue: $10,000/month
• Your cost: $19 + $200 = $219/month
• Competitor flat rate: $99/month
• You pay more, but getting 100x more value

Large store example:

• Attributed revenue: $50,000/month
• Your cost: $500/month (cap)
• Competitor flat rate: $249/month
• You pay more, but unlimited scale

The benefit: You only pay more when DemandLoop is clearly delivering value. If it doesn't drive sales, you pay minimal cost.

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Frequently Asked Questions

What if I have no attributed orders?

You pay only the base $19 fee. Zero commission.

This can happen in slow months or if your products stay in stock. You still get unlimited notifications and full analytics.

Can I see attribution before charges?

Yes. Dashboard shows real-time attribution:

• Today's attributed orders
• This week's running total
• Month-to-date usage
• Projected monthly charge

No surprises—you always know what you'll pay.

How do I know attribution is accurate?

Transparency features:

1. Click tracking — Dashboard shows every email click
2. Order details — See exact orders attributed with Shopify order IDs
3. Timeline view — See customer journey from email to purchase
4. Audit log — Every attribution event logged

You can verify any attributed order against your Shopify orders.

What if I dispute an attribution?

Contact [email protected] with the order ID. We'll review:

• Click timestamps
• Order timestamps
• Attribution window calculation
• Any technical issues

If attribution was incorrect, we'll credit your account.

Do test orders count?

No. Test orders (marked as test in Shopify) are never attributed or charged.

What about cancelled orders?

Orders cancelled before payment don't attribute. Orders cancelled after payment are treated as refunds (commission credited back).

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Fair & Transparent Billing

Our Principles

1. Pay for performance — Commission only when we drive sales
2. Full transparency — See every attributed order with details
3. Capped costs — Never pay more than $500/month
4. Fair attribution — Industry-standard 7-day window
5. No surprises — Real-time usage tracking

Why 2% Commission?

Industry comparison:

Service	Model	Rate
Email marketing	Pay per email	$0.10 - $0.50 per email
Abandoned cart	Percentage	2-5% of recovery
Facebook Ads	CPC	$0.50 - $2.00 per click
Google Ads	CPC	$1.00 - $5.00 per click
DemandLoop	Commission	2% per attributed order

Our 2% is competitive and fair:

• Lower than most performance marketing
• Only charged on confirmed sales
• Capped to protect scaling stores

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Next Steps

• View your usage: Dashboard → Billing & Attribution
• Start tracking: Start your Growth trial
• See all plans: Understanding plans & pricing

Questions about a specific charge? Contact [email protected] with your shop domain and we'll review your usage together.