How the commission cap works, with your own numbers
1.5% on completed sub-orders sounds simple. The cap is what makes it fair. Here is the arithmetic.
By The Madana team2 min read
Every supplier on Madana pays a subscription and a commission. The subscription is a flat monthly price per tier: Starter, Growth or Scale. The commission is 1.5% of the value of completed sub-orders in the month. Cancelled or disputed sub-orders never count.
On its own, a percentage punishes growth. The more a supplier sells through the platform, the more they pay, with no ceiling. So the commission has a cap, and the cap is not a number we picked; it is the difference between your tier and the next one up.
The rule in one sentence
You never pay more commission in a month than upgrading to the next tier would have cost you.
Worked example
A supplier on Growth, at JOD 149 a month, completes JOD 30,000 of sub-orders. The commission would be 1.5% of that, JOD 450. The next tier, Scale, costs JOD 399, so the difference is JOD 250. The supplier pays JOD 250, not JOD 450: an effective rate of 0.83%.
At JOD 10,000 of sub-orders the commission is JOD 150, below the cap, so the supplier pays JOD 150. At JOD 60,000 the commission would be JOD 900, and the supplier still pays JOD 250. Past a certain volume the commission stops growing, and the only question left is whether Scale's features are worth JOD 250 a month to you.
Why do it this way
Because it keeps the interests aligned. We want suppliers to push volume through the platform without watching a meter. Suppliers want a bill they can predict before the month starts. A cap tied to the tier ladder does both, and it means the invoice, which you see five business days before it is charged, never contains a surprise.
Try it with your own figures on the pricing page; the calculator uses exactly this arithmetic.