Commission

Strategy and planning

Strategy and planning

Commission is a fee per sale or result, usually a percentage of order value: for affiliates, sales people, marketplaces or brokers.

On marketplaces like bol or Amazon you pay commission per product sold, often varying by category. In affiliate marketing you agree a percentage or fixed amount per sale (see also CPS).

Always run commission through to your net margin, including returns, shipping and VAT effects. A percentage that looks small on revenue can be heavy on margin.

Tip

Compare commission with ad costs on margin per order, not revenue. That way you pick the channel that actually delivers the most.

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