Whether you’re a beginner or experienced in the digital product market, coming across financial terms is a fairly common situation and can often lead to many questions. 

For this reason, we have created content to explain the main terms and expressions, which are part of the life of those who own a digital product, who sell other people’s products, or who are buyers.

Use the alphabetical index below to guide you between financial terms:

A

Affiliate Commission: Defined by the creator of a given product and determines the exact amount that the Affiliate will receive for each sale generated.

Checkout Builder: You can customize the payment page or use one of the templates available.

Automatic commission split for Affiliates: The amounts of sales made by Affiliates are split between them and the creator, all done automatically by the Hotmart platform.

Automatic sales recovery tool: A Hotmart tool used to recover sales lost due to insufficient balance on the buyer’s credit card. When the attempt to make a purchase in installments is denied due to the buyer’s insufficient balance, our system will create a new transaction to charge the Buyer’s monthly amounts in recurring format (see the term “Subscription” at the beginning of this article) to prevent your sale from being lost.

Average ticket: Represents the average amount of sales per customer.

B

BACS: Payment method used in the UK that Hotmart offers as a local payment method. 

Baloto: Payment method used in Colombia that Hotmart offers as a local payment method.

C

Chargeback: When a buyer contacts their credit card company directly and blocks the payment previously made with this card. 

Checkout page: A page where people enter their financial information and complete the purchase.

Commission: Commissions are the amounts available in your account for withdrawal.

Currency Conversion: With currency conversion, you increase your conversion chances by allowing people from other countries to buy your product while providing the same experience and ease as a local purchase. The person will be able to pay in their local currency without international shopping fees.

Cross-Selling: This is a sales technique in which a vendor offers products that complement the customer’s purchases.

Cupón de Pago: Payment method used in Argentina that Hotmart offers as a local payment method.

Currency exchange spread: When you make an international sale on the Hotmart platform, the price paid by the buyer and the amount you receive may vary due to fees and taxes. This means that this new price involves currency conversions, installment payment fees, and legal taxes from the country of origin. The currency exchange spread is the difference between the buying and selling price of foreign currency.

Customer Acquisition Cost (CAC): This metric is widely used in Marketing and Sales and shows how much a business is investing to gain each new customer.

D

Downselling: Offering a lessor or more affordable product when the customer can’t make the purchase of the desired product.

L

Limit of withdrawals: Maximum amount that can be withdrawn. If the account is registered as an Individual, the limit will be R$1,900.00 per month, while a Corporate account is unlimited.

Local payment methods: The local payment methods offered by Hotmart are the most widely used payment methods in each country, and offering them is a great way to convey convenience and trust to buyers.

M

Multibanco: Payment method used in Portugal that Hotmart offers as a local payment method.

O

One-Click-Buy: Allows creators to sell products within the Hotmart members’ area without requiring buyers to re-enter credit card information or leave the platform.

OXXO: Payment method used in Mexico that Hotmart offers as a local payment method.

P

PagoEfectivo: Payment method used in Peru that Hotmart offers as a local payment method.

Product guarantee period: The period the buyer has to request a refund or cancellation of a product.

Payout processing period: The period it takes from the moment the purchase is approved until it is released for withdrawal on our platform.

PSE: Payment method used in Colombia that Hotmart offers as a local payment method.

R

Recovery of purchases (or cart recovery): A Hotmart tool that allows the data registered by the lead to be recorded by the platform. Thus, if a lead has started the purchase process and gives up before completing it, the creator can identify this lead and work directly with him or her.

Recovery for Installment Payment with Bank Payment Slips: Possibility for the buyer to split a purchase into up to 12 installment payments via bank payment slip.

Refunds: Process of receiving money back spent on a purchase.

Return on Investment (ROI): A widely used financial metric to find out how much money the company is making (or losing) with each investment made.

S

Sencillito: Payment method used in Chile that Hotmart offers as a local payment method.

SEPA: Payment method used in the European Union that Hotmart offers as a local payment method.

SPEI: Payment method used in México that Hotmart offers as a local payment method.

Subscription: The modality implies in the recurring charge for access to the content, i.e. the buyer must make periodic payments (monthly, bimonthly, quarterly, semiannually, or annually, as set up by the creator) in order to have continuous access to the product for a given period of time.

U

Upselingl: Is a “purchase upgrade”, which means offering the buyers a product that is useful as soon as they makes their first purchase, encouraging them to purchase something of higher value within that product category already purchased.

A platform plus a complete payment system

In addition to having a payment system developed with everything that the digital market requires, with Hotmart, you have complete, integrated and automated solutions for your digital business.

Check out everything you can access when you choose Hotmart:

• The sky’s the limit! We have various formats available for those who want to create a digital product, such as ebooks, software, podcasts, video classes, etc.
• A members area for you to share your content
• You only pay after you sell
• Tools to scale your sales
• Reports to help you create smarter strategies
• Local payment methods in several countries, exclusive anti-fraud system, the possibility of selling in more than 12 currencies and anywhere in the world, and more.

We also have content on our blog that explains how Hotmart works. Feel free to access it! =)

Did you like to learn more about financial terms? See you next time!