Contracts

What a fair management commission actually looks like

There is no universally correct commission rate. There is a rate that makes sense for what you are getting, and the only way to know whether yours does is to work out how much the agency has to grow your income before you are any better off. That number is usually much larger than people expect.

Start with the break-even, not the rate

A commission is not a cost you pay out of profit — it comes off the top, before the platform's cut has even finished taking its share. So the question is never "is 40% a lot?" It is "how much bigger does my income have to get before 60% of the new number beats 100% of the old one?"

At a 40% commission, revenue has to rise by roughly two-thirds before you break even. At 50%, it has to double. Everything below that threshold is you working harder for the same money or less.

The agency offer calculator does this with your own figures, including the extra tax you would owe on the higher income — which most comparisons quietly omit.

What different rates should buy

Roughly, and with enormous variation:

  • 10–15% — a specific service. Someone handling brand-deal outreach, or a manager who negotiates but does not run day-to-day operations.
  • 15–25% — genuine full service. Chat coverage, content scheduling, promo, brand outreach, and a named person accountable for results.
  • 30%+ — this needs to include something that materially changes your income, not just labour. Paid traffic they fund, a distribution network you cannot access alone, or a book of brand relationships that produces deals you would not otherwise get.
  • 50% — an equal partnership. If they are taking half, they should be carrying half the risk and half the cost, and that should be visible in the contract.

The three questions that matter more than the rate

Is it on gross or net?

A 30% commission on gross is meaningfully more expensive than 30% on what you receive after the platform's cut. On a $10,000 month with a 20% platform fee, that is $3,000 versus $2,400 — $7,200 a year on the same headline percentage.

Does it apply to the audience you already had?

Paying commission on subscribers you brought with you is paying for work nobody did. The fair structure is commission on incremental revenue above your trailing average at signature. Agencies that decline this are usually telling you they do not expect to generate much increment.

Does it stop when the contract stops?

Trailing commission after termination means paying for a service you no longer receive. Whatever the rate, a tail turns it into something much worse.

What "we take 50% but we do everything" is really saying

Sometimes this is honest and correct. If an agency genuinely removes thirty hours a month of messaging and admin, that is worth real money even at flat revenue — work out your real hourly rate and multiply. For plenty of creators, buying back their evenings at 40% is a rational trade they would make again.

The version to be wary of is where "everything" is undefined. If the contract does not list deliverables and frequencies, you are paying half your income for a promise, and you will have no basis to complain when the promise is not kept.

A reasonable thing to ask for

A commission that steps: lower on your existing baseline, higher on growth they generate. It aligns everyone, it is easy to calculate, and an agency confident in its own value should be happy to take a bigger share of a bigger number.

If that suggestion is met with resistance, you have learned something useful for free.

Not advice. I am not an accountant or a lawyer, and nothing here is advice from one. What I can offer is the arithmetic done carefully, the primary sources cited so you can check them, and an honest account of where the rules are genuinely uncertain. For anything you are about to sign or file, use a professional — that is what they are for.