Setting Commission for a 3-Level Recharge Network: A Worked Example
Key takeaways
- Start from the margin you actually receive, per operator
- Retailers need the biggest share or they move to another app
- Check your own margin after every change
Commission is where most new recharge networks either win partners or quietly lose money. The idea is simple: one margin from the recharge API, shared across your levels. The detail is where it goes wrong.
A worked example
Say your API gives you a 3% margin on one operator. Here is one way to share it. The numbers are an example only; use your own API rates.
| Level | Share | On a ₹1,000 recharge |
|---|---|---|
| Retailer | 2.0% | ₹20 |
| Distributor | 0.4% | ₹4 |
| Master distributor | 0.3% | ₹3 |
| You (owner) | 0.3% | ₹3 |
The total given out (2.7%) stays below what you receive (3%). That gap is your margin, and it must be checked operator by operator.
Keep one spreadsheet with your API margin per operator next to your commission slabs. Update it the day an API rate changes.
Mistakes that eat your margin
- Copying one commission slab to every operator
- Raising retailer commission without lowering another level
- Forgetting that some operators pay a flat amount, not a percentage
How the admin panel helps
A good recharge admin panel lets you set commission per level and per operator, and shows earnings for each user, so you see the effect of a change the same day.
Conclusion
Start from your real margin, give retailers a share that keeps them loyal, and review the numbers monthly. See how commission slabs work in the free demo.
Set commission by level and operator
Try the admin panel in the free demo.
Frequently asked questions
How is recharge commission split between levels?
Should every operator have the same commission?
What is the most common commission mistake?
Have a question? Talk to our team
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