Earning Vendor Commissions? Here’s What You Need to Know

Your First Commission Payment Just Landed 🎉You’ve partnered with a vendor, made stellar product recommendations, and now you're earning a cut of the sale. Commission income is a great way to boost your bottom line—but it’s important to set it up right.

Here’s what to know:

What’s Commission Income?

It’s the money you earn when a client buys a product through your vendor recommendation—think furniture, millwork, lighting. You get a percentage of the sale every time they say “yes.”

🤝 Get Clear Terms with the Vendor

Before you start cashing in, lock in the details:

• Commission Rate: Know the exact % or flat fee you'll earn.

• Payment Terms: When will you get paid—after the client pays? After shipping?

• Conditions: Are all purchases eligible? Or just certain ones?

  Put it in writing. Every time.

📊 Track It Like a Pro

Commission income should be tracked separately from your design fees.

• Create a Separate Account in your accounting software or spreadsheet just for commissions.

• Send an Invoice to the vendor each time you’re paid. Include:

  • Vendor name

  • Items sold

  • Commission rate

  • Total earned

💰 Sales Tax Charge

Commission income is taxable if both you and the vendor are registered for GSTHST. Find out their Sales Tax Registration number - if you don't have it already and add this percentage to the commission amount.

Your eye for design just became a new revenue stream. Track it right, stay compliant, and keep those commission checks coming.