How Commissions Work
This article provides an overview of the commissions charged on the platform, the way they are calculated, and how they are shown in reports.
Types of commissions charged on the platform.
The Margin is a commission that the Organization/Agency charges to the Agency/Advertiser over and above the Media Cost. This commission is transparent and can be seen by all the parties. In reports, this commission is called Margin from Advertiser (if you set it up for Advertiser)/Margin from Agency (if you set it up for Agency).
The baked-in commission (Pure Advertiser Admin Profit) is a commission taken by the Agency, but this type of commission is confidential and can be seen by Admins only.
The Platform Access Fee is a fee charged to the Organization for using the platform.
The figure below demonstrates the commissions taken on the platform:
To calculate Margin in %, proceed as follows:
Margin % = Margin in $ ÷ Media Cost in $
To calculate Baked-in Commission in %, proceed as follows:
Baked-in Commissions in % = Baked-in Commission in $ ÷ Media Cost in $
To calculate % from Media Cost for a specific advertiser, proceed as follows:
Margin + Baked-in Commission - Platform Access Fee
Note: When setting up the baked-in commission, you need to include the Platform Access Fee to charge it to the Advertiser.
How commissions work on Platform.IO
There are the following entities on the platform: the Organization, Agency, and Advertiser. Let’s have a look at how the commissions work between them.
For example, Platform.IO charges a 10% Tech Fee to the Organization. The Organization charges a 20% Margin to the Agency. The Agency charges a 30% Margin to the Advertiser.
Note: When the Agency is created and Advertisers signed up, the balance of the Agency and Advertisers should be positive. In this case, the Admin can add funds to Agencies (or Advertisers if needed) manually.
Margin and Baked-in commissions are set up while adding a new Agency/Advertiser. They can be edited afterwards.