A flat 10% commission to a sports facility treats a $1,000 month the same as a $4,000 month — and both are well within the range of what a single machine can realistically earn, which is exactly why a tiered structure protects your margin at the low end. Tiered revenue share structures solve this by aligning the location's financial interest with yours — they earn more as the machine does better, and you keep all the margin at the low end where volume doesn't justify sharing it.
Tiered commissions are more common than most new operators realize. Property managers at offices, sports facilities, and call centers have seen enough commission proposals to know that flat percentage structures don't incentivize them to promote the machine. A tiered structure creates a reason for the location to care.
The tiered model that works
The basic structure: zero commission on gross revenue up to a floor threshold, then a rising percentage above it. The floor protects your base economics. The escalator gives the location skin in the game once the machine is performing.
Example for a mid-size office placement:
- $0–$800/month gross: 0% commission (operator keeps 100%)
- $800–$1,500/month gross: 8% of revenue above $800
- Above $1,500/month gross: 12% of revenue above $800
At $1,200/month gross: commission = 8% x ($1,200 - $800) = $32. At $2,000/month gross: commission = 12% x ($2,000 - $800) = $144. The location earns meaningfully at high performance, nothing at baseline. Your margin at the floor is fully protected.
Tiered structures by location type
Office (50–200 employees): Floor at $600–$800 gross/month, 5–10% above floor. Offices have consistent but moderate traffic. The floor threshold is low because baseline performance is predictable.
Sports facility or recreation center: Floor at $1,000–$1,200 gross/month, 8–15% above floor with a stepped escalator at $3,000. Sports facilities can have very high-traffic events (tournaments, league nights) that spike revenue. The escalator acknowledges this and gives the facility management a reason to allow machine placement in high-traffic zones.
Call center: Floor at $800–$1,000 gross/month, 5–12% above floor with a SKU bonus clause. Call centers sometimes have purchasing managers who want influence over the product mix — a small bonus commission tied to specific SKU category performance (e.g., "an additional 1% on revenue from healthy snack SKUs") can close these placements where a flat rate can't.
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Start building free →Always cap the escalator
A tiered structure without a cap creates unlimited commission obligations at exceptional performance. Cap the maximum commission rate at 12–15% of gross regardless of how high revenue goes. Above that, you're better off adding a second machine at the location (which the tiered structure incentivizes them to want) than continuing to share a growing percentage.
How to present tiered structures
Lead with the zero-commission floor: "At normal performance levels, this machine earns you nothing — and that's intentional. We're not taking commission unless the machine is genuinely performing for your space." This framing resonates with skeptical property managers who worry about signing a commission deal for a machine that never actually produces revenue.
Present the escalator as upside: "If this machine performs the way we expect for a space like yours, you start earning meaningful commission. The math above shows what that looks like at different performance levels." Leave a laminated one-page showing the three scenarios (floor, mid, high performance) with the commission calculation for each. The Scotch TL901X ($46 →) makes this look professional in minutes.
VendBuddy's ROI calculator lets you model tiered commission scenarios against your projected revenue so you know exactly what each structure costs you at low, mid, and high performance.
Model the numbers →FAQ
What is a tiered revenue share in vending?
A commission structure where the location earns 0% up to a floor revenue threshold, then a rising percentage above it. This protects operator margins at baseline performance and aligns the location's financial interest with high machine performance, giving them a reason to promote the machine and allow premium placement.
What commission rate should a sports facility get for a vending machine?
A tiered structure with 0% below $1,000–$1,200 gross/month and 8–15% above that floor is typical for sports facilities. For high-traffic tournament facilities, a stepped escalator at $3,000 (higher percentage tier for peak performance) acknowledges the event-driven revenue spikes and closes resistant managers.
How do you prevent a tiered vending commission from growing out of control?
Cap the maximum commission rate at 12–15% of gross regardless of revenue level. Above the cap, offer to add a second machine at the location (which the tiered structure makes them want) rather than sharing a higher percentage. Never leave a tiered structure uncapped in a contract.
Related: vending machine commission rates, vending contracts 101, negotiating vending placements, responding to rejection emails, when a PM says no.