Q: Flat commission or tiered/volume-based rates?

Q: Flat commission or tiered/volume-based rates?

Flat is the right starting point. It's simple, predictable, and partners can model their earnings instantly. Don't add complexity you can't yet justify.

Move to tiered (rate rises with volume) when you have a clear ceiling problem: your best partners have more inventory but no reason to send it to you over a competitor. A tier like 'hit 50 sales/month, rate goes from 20% to 25%' gives them a concrete target.

Use category-based rates instead of volume tiers when margin varies wildly by product — pay 5% on low-margin hardware, 30% on subscriptions. This protects your economics better than rewarding raw volume.

Caveat: tiers reset every period and create month-end gaming, where partners hold conversions to cross a threshold. Use rolling 30-day windows or trailing averages to blunt it, and never let a tier make a marginal sale unprofitable.

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