commission-builder
Commission Builder
Designing an affiliate or influencer commission structure without anchoring it to your actual unit economics is one of the fastest ways to erode margin. Commission Builder helps ecommerce operators and brand teams work backwards from gross margin, average order value (AOV), and expected conversion rates to arrive at commission tiers that are attractive to partners while protecting profitability.
Use when
- You are launching a TikTok Shop affiliate program and need to determine the maximum commission percentage you can offer creators without going below a target gross margin threshold, and you want to model multiple tiers (micro, mid, macro) simultaneously.
- You are negotiating a flat-fee + performance bonus deal with a KOL or brand ambassador and need to calculate the break-even sales volume at each bonus tier given your product COGS and current average order value.
- You are auditing an existing Shopify or Amazon Associates affiliate program and suspect certain commission rates are eating into margin because they were set arbitrarily rather than derived from unit economics.
- You want to design a tiered commission ladder for a Shopee or Lazada affiliate campaign where commission rates increase at defined GMV milestones, and you need to stress-test those thresholds against pessimistic and optimistic conversion rate scenarios.
What this skill does
Commission Builder takes your product economics — COGS, selling price, platform fees, and any additional fulfillment costs — and computes the contribution margin available to fund partner commissions before you set a single rate. It then models one or more commission structures (flat percentage, tiered GMV, hybrid flat + bonus) and outputs a side-by-side comparison showing projected margin retention, partner earnings at different sales volumes, and the minimum conversion rate required for each scenario to remain profitable. It flags structures that breach your margin floor and suggests adjustments, so you can negotiate with partners from a position of financial clarity rather than guesswork.