In the interests of being fair and transparent for both our customers and our Creators, our Transparency Policy sets out how we aim to reassure you of our commitment to be an ethical small business. We will publish the following statements annually on (or around) July 31 each year. Each statement will cover the previous 12 month period from 1 July to 30 June.

Tiers Statement

Please see our Understanding Tiers page for a description of the Tiers system.

The annual Tiers statement will identify:

• The total number of Creators that achieved each Tier during the period. For example, if Creator A was at Tier 3 for the whole 12 months, Creator B made Tier 3 for a total of 2 months in the 12 months period, Creator C made Tier 3 for a total of 4 months in the 12 months period, and no other Creators made it to Tier 3, this number would be “3” because 3 Creators made it to Tier 3 at least once during the year.
• The total number of Creator-months (for all Creators added together) for each Tier. Using the above example, the Tier 3 number for the hypothetical year would be “18” – 12 for Creator A + 2 for Creator B + 4 for Creator C. Creators will be listed under every Tier they appeared in during the period. For example, If Creator B joined the site in November and spent 2 months in Tier 1 and 4 months in Tier 2, in addition to the two months in Tier 3, they would contribute 2 Creator-months to the Tier 1 number and 4 Creator-months to the Tier 2 number in addition to the 2 Creator-months in Tier 3.

The logic behind providing this statement is to give some overall benchmark of the average level of sales. This will assist in understanding the numbers in the Expenditure Statement below. Remember, while we’d be very happy for all of our Creators to stay permanently at Tier 3 if that is their wish, it is our expectation that the majority are not interested in putting that level of effort into marketing and will generally spend the majority of their time in Tier 1.

Expenditure Statement

The annual Expenditure Statement will identify the following costs. All amounts will be reported in Australian Dollars (because that is the amount we need to report to our local taxation authorities). Figures will be reported to the nearest $1,000 and figures less than $1,000 will not be reported. Expect many “not reported” entries for the first several years!

• The total amount distributed to Creators as licencing fees (not itemised). Water Sprite family members participating as Creators on the Shop will be paid profit share using the Tier system in the same way as other Creators, and amounts paid to them will be included in this number.
• The total amount paid by Water Sprite to advertise the Water Sprite Shop.
• The total amount paid to members of the Water Sprite family, and the time (in hours) expended, to administer, manage and operate the Water Sprite Shop website, including liaising with suppliers, Creators, customers and other people for the continued operation and expansion of the website.
• The total amount distributed as profit to the owners of the Water Sprite business entity that is attributable to the Water Sprite Shop.

The logic behind this statement is to be up-front and clear about how much of the money spent on the site is going to Creators in comparison how much goes to the owners and members of the Water Sprite family for their work and for profits. This will not be a profit and loss statement – it will not include total money received, cost of production, nor the myriad of hosting, licencing and other business expenses involved in running this business. Advertising costs are included because it is part of our undertaking under the Tier system to spend a portion of that money on advertising.

This statement may include amounts that are not pertinent to the Tier system. Water Sprite may enter into agreements with particular Creators to undertake sales on commission, or other commercial arrangements, to which the Tier system does not apply. Amounts paid to Creators under those agreements, amounts paid in advertising under those agreements, and administrative or other work required by those agreements, will still appear in this statement. Nevertheless, we hope that the intent is still served – to reassure both customers and Creators that Water Sprite are fulfilling our obligations to you as an ethical small business to provide a fair and reasonable payment to our Creators for the use of their works.