Commission Calculator
Model Different SaaS Reseller Commission Structures
Compare flat rate, tiered, and hybrid commission models. Understand partner earnings and vendor costs for one-time vs. recurring commissions.
Commission Model
Commission Type
Deal Parameters
Effective Rate
0.0%
Annual Partner Income
$0
Commission per Deal
$0
Vendor Margin
0.0%
Partner Earnings
Lifetime Value per Customer
$0
24 months of recurring commissions
Vendor Costs & Revenue
Monthly Commission Cost
$0
Monthly Net Revenue
$0
After commission payouts
Gross Margin
0.0%
Revenue retained after commissions
Annual Summary:
Automate Commission Tracking
Elinkages automatically calculates and tracks partner commissions.
Book a DemoCommission Model Comparison
| Model Type | Best For | Pros | Cons |
|---|---|---|---|
| Flat Rate | Simple programs, consistent deal sizes | Easy to understand, predictable costs | No incentive to increase volume |
| Tiered | Growth-focused programs, scaling partners | Motivates higher volume, rewards top performers | More complex to administer |
| Hybrid | Balanced approach, milestone-based programs | Flexible, clear targets, fair baseline | Requires threshold monitoring |
💰 Commission Best Practices
- • 20-40% is standard for SaaS resellers
- • Recurring commissions drive long-term partnership
- • Tiered structures motivate growth
- • Be transparent about payment terms
- • Review and adjust quarterly
📊 Margin Considerations
- • Maintain 50%+ gross margin after commissions
- • Factor in customer support costs
- • Consider payment processing fees
- • Account for refunds and churn
- • Higher margins enable better partner support
🚀 Related Resources
Frequently Asked Questions
Should commissions be recurring or one-time?
Recurring commissions (paid monthly/annually for the customer lifetime) align partner incentives with customer retention and create sustainable partner income. Most successful SaaS partner programs use recurring models.
What's better: flat rate or tiered commissions?
Tiered commissions motivate partners to increase volume and reward top performers. Start with flat rates for simplicity, then introduce tiers as your program matures and you have volume data.
How do I ensure profitability with high commissions?
Calculate your unit economics: ensure your gross margin minus commission rate still leaves 50%+ margin to cover operations, support, and profit. Partners reduce CAC significantly, offsetting higher commission costs.
When should I use hybrid commission models?
Hybrid models work well when you want to provide a fair baseline (e.g., 20%) while incentivizing specific behaviors like hitting monthly quotas (bonus 5% when 10+ deals). This creates clear, achievable targets.