Commission design shapes behaviour. Choose it as carefully as pricing.
Flat and tiered
Flat is simple, tiered rewards volume. Both are easy to explain and audit.
Multi-level referrals
Referral levels extend reach but add complexity. Propto supports multi-level referral commission percentages and a team incentive ladder.
Test with examples
Run three sample bookings through the structure and check totals before launching it.
Why structure matters
Commission is the main reason brokers work with a developer, and how it is structured shapes their behaviour. A clear, fair structure motivates partners to bring qualified buyers; a confusing or inconsistent one creates disputes and drives partners elsewhere.
The best structure is one partners can understand quickly and your team can calculate reliably.
Flat commission
A flat percentage or amount per booking is simple to explain and calculate. It works well for many developers, especially when partners vary widely in size and volume.
The drawback is that it does not reward higher volume or better performance directly.
Tiered commission
Tiered structures increase the rate as a partner reaches booking thresholds within a period. They reward volume and encourage partners to focus on your projects.
Define thresholds, periods and whether the higher rate applies to all bookings or only those above the threshold. Test examples to avoid confusion.
Multi-level referrals
Multi-level structures pay commission not only to the partner who closes a booking but also to those who referred that partner into the network, often at decreasing percentages across levels. They can expand reach quickly but add complexity.
Keep levels few, document the rules and make the referral tree visible so partners can verify calculations.
Project-specific rates
Some projects may justify different rates: a slower-selling phase, a premium project or a launch period. Communicate project-specific rates clearly and record which rate applies to each booking.
Avoid frequent changes that make partners uncertain about what they will earn.
Defining the payout trigger
Decide when commission becomes payable: at booking, at a certain percentage of payment received, at agreement or at registry. Triggers linked to payments protect you from paying commission on bookings that later cancel.
State what happens to commission if a booking is cancelled after payout.
Bonuses and incentives
Bonuses for reaching targets or launching periods can motivate partners. Show bonuses separately from commission on statements and define eligibility in writing.
Keep incentives affordable and sustainable.
Testing with examples
Before launching a structure, calculate commission for several sample scenarios: a single booking, a partner crossing a tier, a multi-level referral and a cancellation. If your own team finds the calculation confusing, partners will too.
Share worked examples with partners when explaining the structure.
Why it matters for partners
Partners plan their effort around expected earnings. Predictable, transparent commission builds loyalty; surprises and disputes erode it quickly. Partners who trust your structure focus on selling rather than checking your arithmetic.
Fairness also protects your reputation among brokers, who share experiences widely.
Getting the team involved
Finance designs and calculates commission, partner managers explain it, legal documents it and management approves changes. Configure the structure in your system so calculations are consistent.
Train partner managers to explain the structure with examples.
Building the habit
Review commission costs and partner performance quarterly. Adjust structures carefully and with notice, applying changes only to future bookings.
Keep a history of structures and effective dates.
A worked example
A developer offers a flat rate with a tier bonus for partners exceeding a monthly threshold, payable once half the booking amount is received. A partner closes four bookings in a month, crossing the threshold. Their statement shows the flat commission on each booking, the tier bonus as a separate line and the payout status pending until payment triggers are met.
The partner understands the statement without calling, because the structure was explained with examples at onboarding.
Common mistakes
Common mistakes include structures too complex to explain, changes applied retroactively, unclear payout triggers and bonuses mixed into commission figures.
Another mistake is calculating commission manually in spreadsheets.
Questions teams often ask
Which structure is best? The one your partners understand and your business can sustain; many developers start flat and add tiers later.
Should multi-level referrals be offered? Only if you can manage the complexity transparently.
A structure checklist
Structure chosen and explained with examples. Payout trigger and cancellation rules defined. Project-specific rates recorded. Bonuses separate and written.
Structure configured in the system. Changes applied to future bookings with notice. History kept.
In practice
Write down your current commission practice, test it with examples and simplify where needed. Configure it in your system, then explain it to partners with worked examples.
Review results after a quarter.
Going further
As data accumulates, look at which structures bring the most qualified buyers rather than just the most leads. A slightly higher rate for partners who consistently bring buyers who complete payments may be worth more than broad volume incentives.
Share aggregated insights with partners, such as which buyer profiles tend to book, to help them focus their efforts.
In short
Choose a structure partners can understand, define payout triggers and cancellation rules, show bonuses separately, test with examples, configure calculations in your system and change terms only with notice.
Can commission levels be configured?
Yes, referral commission levels are configurable in settings.