Should You Pay Creators a Flat Fee or Offer Commission?

Should You Pay Creators a Flat Fee or Offer Commission?

Brands ask me this a lot. Many say their budget is limited, so they prefer commission-only deals.

Let me break it down from two angles: actual cost for the brand, and willingness from the creator.

The Math: Commission vs. CPM

Say your gross margin is 50%, product price is $35, and you offer creators 15% commission. That's $5.25 per sale. Assume a 3% click-through rate (CTR) and 3% conversion rate (CO).

To sell 1,000 units, you need about 1.1 million impressions.

• Commission cost: $5.25 x 1,000 = $5,250
• CPM cost (at a typical influencer CPM of $10): 1,100 x $10 = $11,000

Commission looks like the better deal, right?

But Here's the Real Problem

The real issue is the low CTR and CO. Setting aside product-market fit, low CTR usually means the creator's audience doesn't match your target market, or the content isn't relevant enough to your product. Low CO is more about the product itself.

What Happens When You Target Precisely

Precise creator targeting and content strategy can 3x your CTR. Let's say CTR = 10%, everything else stays the same.

To sell 1,000 units, you now need only 333K impressions.

• Commission cost is still $5,250
• CPM cost: 333 x $10 = $3,330

The better your product's market potential, the wider this gap becomes. Suddenly, paying a flat fee based on CPM is significantly cheaper than commission.

The Creator's Perspective

From the creator's side, if a product hasn't been validated by the market, commission-only feels like working for free. And conversion attribution is often unclear, so they prefer flat fees. Big brands or proven products are a different story — creators are more willing to bet on commission when they trust the product will convert.

The Hidden Cost of Commission-Only

Even if a creator agrees to commission-only, the return is uncertain, so they're much more likely to ghost, delay, or half-ass the work. Many of these partnerships fall apart before a single video goes live.

Samples and shipping aren't cheap either. Brands try to do more with less, but end up losing on both ends. You get what you pay for.

My Conclusion

Find creators who are a perfect match for your product. Create quality content together. And pay them.

That's where the real leverage is. When the creator-brand fit is right and the content strategy is dialed in, flat fees almost always deliver better ROI than gambling on commission. The key is making sure you're working with the right people — and that starts with precise targeting.