Secrets To Scaling Your Ecommerce Brand Ep 618: TikTok Shop Profit Secrets-- Mastering Commission Structures for Growth with Jordan West
If you’re running a TikTok Shop or working with affiliates, understanding commission structures is critical for maximizing profits.
Many brands make costly mistakes when setting commission rates, leading to lost revenue despite high sales.
In this episode, Jordan West breaks down the two key commission models—Standard Affiliate Commission (20%) and Shop Ads Commission (5-10%)—and how they impact profitability. Plus, we’ll discuss how to scale your TikTok Shop while keeping ad spend under control.
Listen and learn in this episode!
Key Takeaways from the Episode
- Master TikTok Shop Commission Models: Standard Affiliate Commission (20%) rewards organic sales, while Shop Ads Commission (5-10%) ensures ads remain profitable. Setting the wrong rate can destroy margins.
- Profitability > Revenue: High sales don’t always mean high profits. Running ads without adjusting commissions can leave you with razor-thin margins or even losses.
- Crunch the Numbers: A $30 product with a 60% margin is profitable with a 20% organic commission but barely breaks even if ads are added without adjusting commissions.
- Scale with Smart Strategies: Lower your cost per order, test viral-style content, and increase AOV by bundling products and offering exclusive deals for TikTok Shop buyers.
- Educate and Align with Affiliates: Affiliates need to understand commission structures so they don’t feel cheated. Transparency is key to keeping everyone happy and profitable.
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