Q: Did a Q4 commission bump pay for itself or just give away margin?
We ran it deliberately and tracked incrementality. For a consumer product, we offered a temporary jump from 20% to 30% commission for November and December.
What we measured:
— Total partner sales rose 64% versus the prior two months
— But our baseline always rises in Q4, so we compared against the same partners' prior-year December
— Year-over-year, partner revenue was up 38% beyond normal seasonal lift
That 38% incremental beat the extra 10 points of commission we paid out, so it cleared. The key was that several mid-tier partners shifted their promo calendar to prioritize us specifically because of the boost.
The caveat: if you do this every year, partners hold back effort in October waiting for the bump, training them to ignore your base rate. We now rotate the timing and don't pre-announce far in advance, so the boost actually changes behavior instead of just rewarding planned activity.
Got a question? Send it in.
We ran it deliberately and tracked incrementality. For a consumer product, we offered a temporary jump from 20% to 30% commission for November and December.
What we measured:
— Total partner sales rose 64% versus the prior two months
— But our baseline always rises in Q4, so we compared against the same partners' prior-year December
— Year-over-year, partner revenue was up 38% beyond normal seasonal lift
That 38% incremental beat the extra 10 points of commission we paid out, so it cleared. The key was that several mid-tier partners shifted their promo calendar to prioritize us specifically because of the boost.
The caveat: if you do this every year, partners hold back effort in October waiting for the bump, training them to ignore your base rate. We now rotate the timing and don't pre-announce far in advance, so the boost actually changes behavior instead of just rewarding planned activity.
Got a question? Send it in.