Someone please explain the whole money part..

Hello everyone

I’ve watched the video explaining the new free to use concept.

“When you ship a game or application, you pay a 5% royalty on gross revenue after the first $3,000 per product, per quarter. It’s a simple arrangement in which we succeed only when you succeed”

here is the part I don’t understand…

Does this mean that I can earn 3.000$ on a project AND THEN Epic will start taking 5% off the income AFTER the 3.000$ mark?
if so, does the next bit mean that the 3.000$ resets after 3 months(a quarter) and Epic stop taking 5% of off the income until I earn another 3.000$?

Sorry for the grammar mistakes, I hope you’ll be able to anwser my questions

Thanks,

Yes, that is correct, if you earn more than $3,000 in a quarter, you pay 5% royalty on the amount above the $3,000. So if you make $10,000 then you pay royalty on $7,000
Also note, it is gross revenue, meaning the full amount it sells before everyone takes their cut, so something like Steam takes 30% and so the gross revenue would be the amount before Steam takes their cut.