Commission calculation strategies
GrowthHero supports four different ways to calculate your partner's commission:
1. Calculate from the sum of all line item prices
The sum of the total amount of all items is used to calculate the commission; the discounts are not deducted.
2. Calculate from order total price
The total price includes item cost, shipping, discounts, and sales tax is used to calculate the commission.
3. Calculate from order subtotal price
The subtotal price of all the items in the order after both line-item and cart discounts have been applied.
For Shopify - The subtotal doesn't include taxes (unless taxes are included in the prices) or shipping costs.
For BigCommerce - The subtotal includes taxes, but doesn't include additional taxes, fees, shipping cost etc.
4. Calculate from order subtotal price with the deducted tax
The subtotal price but without sales tax taxes. Use this option if your product prices include tax and you want to skip taxes when calculating commission.
A customer makes an order for two products and the partner commission is 10%.
Price of product X - $50
Price of product Y - $100
Sales tax - $13.50 (10%)
Discount value - $15 (10%)
Shipping cost - 10$
The sum of all line item prices - $150
Total price - $158.50
Subtotal price - $135
Subtotal with the deducted tax - $121.50
The table below shows the commissions calculated using different strategies.
|1. Calculate from the sum of all line item prices||$150.00||$15.00|
|2. Calculate from order total price||$158.50||$15.85|
|3. Calculate from order subtotal price||$135.00||$13.50|
|4. Calculate from order subtotal price with the deducted tax||$121.50||$12.15|
Changing your commission calculation strategy
To switch between strategies, open this link and select one that interests you.
Well done! Now you know everything about the ways a commission is calculated.