Habitat allows users to recoup their expenses using several different weighing methods
Total Payee <Type> Earnings - Recoups the expense from the total value of the selected earnings type selected for any payees added.
Users can choose the percentage of the expense that each added payee is responsible for, or the user can add products which will automatically be attributed to payees based on the number of products added and the payee shares of the deals that the products are associated with.
For example, if Product X has one payee (Payee A) and Product Y has two payees (Payee A & Payee B) both with 50% of the artist side of the deal share, when both Product X and Product Y are added to the expense, Payee A will be responsible for 75% of the expense, while Payee B will be responsible for 25% of the expense.
Proportional to Earnings - Recoups the expense from any deal shares selected in a manner that is proportional to their earnings and with no regard to the proportions of the deals.
For example, if Deal X has one payee (Payee A) and Deal Y has two payees (Payee A & Payee B), users could add Payee A’s share of Deal X, or they could add Payee A’s share of both Deal X and Deal Y, or they could add Payee A’s share of Deal X and Payee B’s share of Deal Y.
Expenses are then set to recoup as quickly as possible in proportion to the earnings associated with the assigned deal share. That means that if Deal X is consistently earning, while Deal Y flops, the expense will recoup almost entirely from Deal B.
Proportional to Deals - Recoups the expense from any deal shares selected in a manner that is proportional to the deal shares selected with no regard to the proportions of the earnings.
For example, if Deal X has one payee (Payee A) and Deal Y has two payees (Payee A & Payee B), users could add Payee A’s share of Deal X, or they could add Payee A’s share of both Deal X and Deal Y, or they could add Payee A’s share of Deal X and Payee B’s share of Deal Y.
Unlike the Proportional to Earnings option, Proportional to Deals is set up to automatically split the deal based on the percentages of each deal share added. For example, if Deal X has one payee (Payee A) who controls 90% of Deal X’s artist share, and Deal Y has one payee (Payee B) who controls 10% of Deal Y’s artist share, then when both shares are added to an expense, 90% of the expense would recoup from Payee A’s share of Deal X and 10% of the expense would recoup from Payee B’s share of Deal Y.
The expense will only be fully recouped when both deal shares recoup their designated expense percentage.
Fixed Amounts For Each Deal Share - Recoups manually assigned amounts from any deal shares selected.
For example, if Deal X has one payee (Payee A) and Deal Y has two payees (Payee A & Payee B), users could add Payee A’s share of Deal X, or they could add Payee A’s share of both Deal X and Deal Y, or they could add Payee X’s share of Deal A and Payee Y’s share of Deal B.
For each deal share added, the user will be asked to specify exactly how much of the expense should be recouped from said deal share. For example, if Deal X has two payees (Payee A & Payee B), the user would add Payee A, then specify that Payee A is responsible for $10 of the expense.