Commission vs Base vs Base Plus Commission
If you are hiring someone to run your Amazon Seller Central account, the pay structure matters more than most sellers realize.
How you compensate an Amazon operator directly affects:
- Decision-making
- Risk tolerance
- Long-term account health
- Whether strategy or short-term metrics are prioritized
Below is a breakdown of the three most common pay structures, how they actually work in practice, and why I operate on a base-only model.
Option 1: Commission-Only Amazon Operator
How commission-only typically works
In a commission-only setup, the operator is paid a percentage of revenue or profit. There is no guaranteed base pay.
Common commission structures include:
- Percentage of total revenue
- Percentage of profit
- Performance-based bonuses tied to ad metrics or growth targets
On the surface, this sounds appealing. You only pay when results happen.
The problems with commission-only
Commission-only creates incentives that often conflict with long-term account health.
Common issues include:
- Over-aggressive ad spend to inflate short-term revenue
- Resistance to necessary but unprofitable work like compliance, cleanup, or catalog fixes
- Focus on metrics that look good rather than what actually matters
- Operator churn when short-term growth slows
Amazon accounts are not linear. Some months require defensive work, not growth pushes. Commission-only models punish that reality.
Bottom line:
Commission-only encourages short-term behavior in a long-term system.
Option 2: Base Plus Commission
Why this model is popular
Base plus commission is the most common compromise.
How it usually works:
- A fixed monthly retainer
- A variable commission tied to revenue, profit, or growth milestones
This structure attempts to balance stability with incentive.
Where base plus commission breaks down
In practice, commission still distorts priorities.
Common downsides:
- Operators optimize for commission metrics, not business health
- Strategic decisions become tied to personal upside
- Disagreements arise when growth requires temporary pullbacks
- Reporting becomes incentive-driven instead of objective
This model also creates unnecessary complexity. Amazon performance already has enough moving parts without compensation becoming another variable to manage.
Bottom line:
Base plus commission sounds aligned, but incentives still skew behavior.
Option 3: Base Pay Only (No Commission)
This is the model I use, and it is intentional.
How base-only compensation works
The operator is paid a fixed monthly fee that reflects:
- Scope of responsibility
- Experience level
- Expected workload
- Account complexity
There is no revenue share and no performance commission.
Why base-only works best for Amazon operations
Amazon requires judgment, restraint, and long-term thinking.
A base-only structure allows:
- Objective decision-making without personal upside pressure
- Willingness to reduce ad spend when needed
- Focus on unsexy but critical work like compliance and catalog health
- Consistent execution during both growth and flat periods
It also creates clarity. You are paying for ownership, not gambling on outcomes.
Why I specifically operate this way
I take full responsibility for the account. Advertising, listings, inventory, compliance, and daily operations are all handled directly.
Because I cap the number of clients I work with at one time, I can do that without needing incentive-based compensation to justify attention.
The goal is simple:
- Make the best decision for the account every time
- Remove conflicts of interest entirely
- Treat Amazon like an operating system, not a commission engine
Bottom line:
Base-only aligns incentives with stability, not volatility.
So What Is the Best Pay Structure?
It depends on what you want.
- If you want aggressive growth at any cost, commission-heavy models will push that
- If you want predictable execution and clean incentives, base-only works best
- If you want flexibility but accept tradeoffs, base plus commission sits in the middle
For sellers who want someone to actually run their Amazon business rather than chase metrics, compensation should reward responsibility, not risk-taking.
Final Thought
Amazon operators should be paid for judgment, not just outcomes.
The best pay structure is the one that removes conflicts, encourages long-term thinking, and allows the operator to act in the best interest of the business without hesitation.
That is why I operate on a base-only model.
If you want to discuss whether that approach fits your business, you can reach out directly.
No sales layer. No incentives to distort advice. Just clean execution.
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