How Much Commission Should Influencers Get?

How much commission should influencers get?

There is no universal percentage. A sustainable influencer commission rate is whatever leaves the brand with acceptable contribution after all variable costs, and that number is set by gross margin, average order value, discount, and how the sale would have happened otherwise. In Make Influence's experience running ecommerce campaigns, rates commonly land somewhere between roughly 5% and 20%, but that is an observed range, not the answer — the calculation is.

A 20% commission is comfortable for a brand with 70% gross margin and impossible for one running at 25%. Below is the formula, worked both ways.

What changes the right commission rate?

The calculation

Work from contribution, not from headline margin:

Contribution per order = Order value − discount − cost of goods − payment fees − fulfilment − commission

Then ask what contribution you need to keep per order, and solve for commission.

Worked example A — high-margin brand

Hypothetical figures for illustration only — not Make Influence customer data.

• Order value: DKK 1,000
• Discount code, 15%: −DKK 150 → net revenue DKK 850
• Cost of goods (30% of gross): −DKK 300
• Payment and fulfilment: −DKK 90
• Before commission: DKK 460
• Commission at 15% of net revenue: −DKK 128

Contribution remaining: DKK 332 per order. Comfortable. This brand could go higher on proven creators.

Worked example B — thin-margin brand, same 15%

• Order value: DKK 1,000
• Discount code, 15%: −DKK 150 → net revenue DKK 850
• Cost of goods (60% of gross): −DKK 600
• Payment and fulfilment: −DKK 90
• Before commission: DKK 160
• Commission at 15%: −DKK 128

Contribution remaining: DKK 32 per order. Effectively break-even before any overhead. The same percentage that was comfortable in example A is unworkable here.

This is why copying a competitor's commission rate is meaningless. The percentage is an output of your unit economics, not an industry standard.

Solving for a sustainable rate

If the thin-margin brand needs to keep DKK 100 contribution per order, then commission must be at most DKK 60 on net revenue of DKK 850 — roughly 7%. That is the honest number, and it is far more useful to know it before negotiating than after.

These two examples price a single order. For how the same math compounds across a full campaign — ten creators, a mix of upfront and commission, four sensitivity scenarios — see the worked example: 10 influencers, UGC + commission.

Do not let the discount and the commission stack unnoticed

A discount code plus commission are two deductions from the same margin, and brands routinely model only one. In example B, the 15% discount cost DKK 150 and the commission cost DKK 128 — together nearly DKK 280 per order, on a product with DKK 400 of gross margin.

If margin is tight, choose: either a meaningful discount with lower commission, or full price with higher commission. A creator's audience often responds better to the second than brands expect, because the recommendation is doing the persuading rather than the price.

The creator side: percentage is not earnings

Creators are frequently advised to hold out for the highest percentage available. That is poor advice, because expected earnings, not the rate, is what matters.

Hypothetical comparison:

• Offer A: 20% commission, DKK 300 average order, product converts poorly for this audience — 4 sales → DKK 240
• Offer B: 8% commission, DKK 1,200 average order, strong audience fit — 15 sales → DKK 1,440

The lower percentage pays six times more. Before accepting a commission-only arrangement, a creator should ask what the average order value is, whether the product has sold to similar audiences before, and how long the attribution window runs. A brand unwilling to answer those questions is asking the creator to take a bet blind. See how much creators should charge brands.

Attribution window and what it is really doing

The window determines which sales count. A 30-day window will capture purchases the customer would likely have made anyway; a 7-day window is stricter and cheaper but attributes less to the creator's genuine influence.

There is no correct number, but there is a correct behaviour: state the window before the campaign starts, apply it consistently across creators, and do not shorten it retroactively when the bill arrives. Retroactive changes end relationships. See how to track influencer marketing performance.

Decision framework

IF your gross margin is above roughly 60% → you can support double-digit commission comfortably.

IF margin is below roughly 40% → model it explicitly before quoting; single digits may be the ceiling.

IF you also pay an upfront fee → a lower commission is reasonable, because the creator's risk is already reduced. See hybrid influencer deals.

IF you have strong repeat purchase economics → you can afford more on the first order, since the customer's value extends beyond it.

IF a creator has proven tracked sales → raise their rate. Retaining a proven performer is cheaper than finding a new one.

IF you are offering both a large discount and high commission → recalculate. You are probably losing money on every order.

FAQ

Is a discount code a substitute for commission?

No. The code is a customer incentive and a tracking mechanism; the commission is the creator's payment. They serve different purposes and both cost margin.

Should commission be paid on gross or net revenue?

Net of discounts, returns and VAT is the cleanest basis. Whichever you choose, define it in writing before launch.

Should commission be paid on returned orders?

No, and creators generally accept this if it is stated upfront. Deducting returns retroactively without warning does not go well.

Can commission rates differ between creators?

Yes, and they usually should — proven performers earning more is a feature, not an inconsistency. Just be able to explain the logic if asked. See upfront vs commission.