How does a wholesaler determine how much they paid

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I am a newbie wholesaler I haven't even done my first deal and been doing some research on wholesaling for a little while I am figuring how this works and I read that there's two different ways so far. One I have found is like for example say a house is worth 200,000 (ARV) and the buyer wants it down to 170,000 and say you convince the seller to get it down to 120,000 for the buyer and that means you get paid 50,000. So that's one way the other way I am not too familiar with but I think it goes like whatever the (ARV) is the sees what 70 percent of that is and then they subtract. That number from the rehab cost and I think the fixed costs and whatever is the result is the wholesalers profit so can someone tell me which is the correct way to predict how much a wholesaler gets paid and tell me if I got how its done wrong or what any professional wholesalers could help me out thank you have a great day