What is commission and revenue share?
Commission logic is the infrastructure that lets your platform take a cut of every transaction passing through it. When a buyer pays a seller through your marketplace, the platform automatically retains its percentage and routes the remainder to the seller — without any manual reconciliation.
This goes beyond a simple payment gateway. You need to track what each seller has earned, handle payout schedules, generate earnings statements, and in some cases withhold amounts for disputes or refunds. For platforms charging GST on top of commission, there are also additional invoicing obligations under Australian tax law.
Revenue share is the same concept applied slightly differently — a contractor, referral partner, or agent earns a percentage of revenue generated through their activity, and the platform tracks and pays that automatically.
When does your app need it?
- You are building a two-sided marketplace where third-party sellers or service providers transact through your platform
- You operate a referral or affiliate programme where partners earn a cut of sales they drive
- You have agents or brokers who earn commission on deals they close inside your system
- You need automated payouts to third parties rather than manually transferring funds each month
- You need per-seller earnings dashboards, payout histories, and downloadable reports
- Your platform charges commission and must issue tax invoices to sellers that reflect Australian GST obligations
How much does it cost?
Adding commission and revenue share typically adds 5–11 hours of development — roughly $1,000–$2,000 AUD.
At the simpler end, this covers a fixed-percentage commission rule, basic Stripe Connect integration, and a straightforward earnings summary. At the more complex end, it includes tiered commission rates (different percentages per seller tier or category), multiple payout schedules, dispute holds, GST-inclusive commission invoices, and detailed reporting.
How it's typically built
The standard approach is Stripe Connect, which is purpose-built for marketplace payment splitting. Each seller onboards as a connected account, and when a payment is processed, Stripe automatically splits the funds — platform commission to your account, net proceeds to the seller — in a single API call. This avoids the platform ever "holding" seller funds in a legally ambiguous way.
Commission rates are stored in your database against each seller or product category. A background job calculates earned amounts and triggers payouts on a schedule (weekly, fortnightly, or on demand). Sellers see a dashboard with transactions, earnings, and payout history. For Australian platforms, the commission invoice the platform charges the seller may attract GST, which needs to be reflected in the tax invoices generated.
Questions to ask your developer
- What payment provider will handle the splits? Stripe Connect is the most common choice for Australian marketplaces but has onboarding requirements for each seller.
- Will commission rates vary per seller, category, or volume tier? Variable rates add complexity to the calculation layer.
- How often will sellers be paid out? Daily, weekly, and on-demand schedules each have different implementation approaches.
- Does the platform need to generate tax invoices to sellers for commission charged? This adds a document generation requirement and GST handling.
- How will refunds affect already-paid commissions? You need a policy and a clawback mechanism before building the system.
See also: Subscription billing · Invoicing and payments · App cost calculator