Minimum Fee
Written by Christopher Krassnig - Founder - Kairos Exchange and ZenoX Media.
Published
- Checks in every memo8
- Automatic on day one3 of 8
- Read by handad spend and processor payouts
- Tracked ecom salesEUR 200M+ZenoX ad-management figures, not Kairos deal volume - Kairos hasn't closed a deal yet.
Minimum Fee is the smallest amount a marketplace or broker will accept as its success fee, charged instead of the percentage whenever that percentage falls below the floor. According to SMERGERS's own FAQ, its minimum is 400 dollars. Kairos sets two, one per lane: EUR 500 in self-serve, EUR 10,000 in full-service, each replacing the percentage on a small enough deal.
Where the Floor Bites
A percentage rate stops meaning much once the deal gets small enough, because a small fraction of a small price barely covers the work of running the sale, so most venues set a floor under it. Below that floor a seller pays the flat minimum instead of the percentage, which works out to a higher effective rate the smaller the deal gets. It is worth checking early rather than late: a seller pricing a deal near a venue's own minimum should compute the flat number directly, because the headline percentage on the pricing page is not the number that will actually apply.
Not to Be Confused With
- Sliding Scale Commission
- a minimum fee is a single floor beneath one rate; a sliding scale is a whole schedule of rates that changes with price.