Set price and commission rules for airtime agents
An agent should be able to work out their commission from their own statement. Set the customer price, the rate and which completed sales qualify. Agree when you pay and how you handle reversals. Check the contract and any tax or legal requirements before you publish the rules.
Commission policy checklist
| Rule | State clearly |
|---|---|
| Eligible sale | Product, status and reporting period |
| Basis | Fixed amount, rate or other approved formula |
| Approval | Who sets and changes the rate |
| Reversal | Treatment of cancelled or corrected transactions |
| Payment | Statement, timing, dispute route and tax documentation |
By Freepaid · Published
Separate customer price from agent earnings
Define the customer price for each product and whether the agent may discount or add a fee. Do not assume that a supplier’s commercial discount can be passed on, retained or divided without checking the terms. The business should approve any customer-facing price and provide a dated schedule to each agent.
Choose a commission basis agents can verify. A fixed amount per completed sale is easy to calculate but may not reflect value. A percentage needs a clear denominator such as face value or eligible gross earnings. Avoid ambiguous labels like “two percent commission” without stating what the percentage applies to.
What a reversal does to a payout
Take an example rate of R0.20 per completed R50 sale. An agent makes 80 eligible sales in a month, earning 80 × R0.20 = R16. If two sales are reversed before the cut-off and the policy excludes them, 78 sales qualify and the payout is 78 × R0.20 = R15.60.
Decide how late adjustments work. If a completed sale is reversed after commission has been paid, define whether the correction appears in the next statement and how the agent can dispute it. Retain the original transaction reference and supporting status evidence. Never deduct from unrelated commissions without a documented, agreed basis.
Reconcile before paying
Provide agents a statement showing period, outlet or agent identifier, eligible transaction count, calculation basis, adjustments and total. Allow a defined review window and give a support route for discrepancies. Reconcile the agent statement to supplier records and till receipts before payment. Keep permissions restricted so agents cannot change the approved rate or edit historical transactions.
Agree on the rate before launch
Have the business owner, finance and an agent representative check the rules before launch. Get employment, tax or legal advice if the arrangement calls for it. Date each version and tell agents when a new rate takes effect. Confirm the commercial terms for your account. Freepaid point-of-sale airtime
Show agents what a correction looks like
If an agent disputes an adjustment, show the order reference and why it was excluded. Give them time to flag a missing sale before the payout closes. Leave enough on the statement for a supervisor to reproduce the correction at the next pay run.