How to set commission for independent sales reps

Start with what each customer payment leaves after delivery costs, processing, and platform fees. Then choose a rep commission and decide how many payments earn it. A useful sales commission structure gives the rep a reason to sell while leaving your business enough to serve the customer.

This guide covers independent sellers. There isn't one percentage that fits every product. A rep who needs several demos to close a sale has different economics from someone making a simple introduction.

MANA, the manufacturers' representative association, explicitly says its commission survey does not set an industry standard. Its guidance is that the agreed rate must work for both parties. Use your own costs and selling requirements to make that decision. Read MANA's commission guidance.

A percentage changes with the sale amount. At 20%, a $100 sale earns $20 and a $200 sale earns $40. A fixed commission pays a stated amount per qualifying sale, so you need to check that discounts won't make it unaffordable.

RepBlend supports percentage commissions and flat amounts for one-time sales. Subscription commissions use a percentage with a payment term. Write both into your offer so a rep can judge the earning opportunity before applying.

For a subscription, duration can matter more than a few percentage points. Suppose a customer makes 12 payments of $100 and the rep earns 20% on each eligible payment.

These are paid-payment examples, not forecasts. A continuing term pays on eligible payments while the subscription continues. It does not guarantee a customer will keep paying or that the rep will earn for life.

Here's a single-payment example using RepBlend's 5% platform fee. Processing is excluded to keep the arithmetic visible. Enter your actual processing cost in the calculator.

RepBlend's 5% platform fee continues on every referred sale or subscription payment, even after the rep's commission term ends. Stripe processing is additional. Check the full fee breakdown.

The remainder still has to cover overhead, taxes, and refunds. Don't treat it as net profit. Reps sell free on RepBlend, as explained in the guide to selling as a rep.

Choose a currency and enter your payment amount, direct costs, processing fees, and rep percentage. Compare the terms over a finite number of paid payments. Use a shorter horizon too, so you can see what happens if the customer stops sooner.

State which payments qualify, how refunds affect commission, and when the rep receives money. On RepBlend, commission is recorded at the sale and reaches the rep's Stripe balance once the payment clears. Bank payout follows 30 days after that.

Within the 30-day clawback window, refunds or disputes can reverse the rep's commission. After that window, the merchant absorbs the refund. Leave room for that cost when choosing your rate.

Existing selling relationships and their customers keep their agreed commission terms when a merchant changes an offer. Edits apply to future relationships. Choose terms you can sustain.

Once the numbers work, use the rep recruitment guide to prepare your product brief. See how listing a product on RepBlend works before publishing your offer.