What should a brand consider when setting its baseline commission rate?

When setting a baseline commission rate, a brand must consider its Company CAC (Customer Acquisition Cost) goals to ensure the commission structure aligns with profitability targets. The commission should not exceed the acceptable cost to acquire a customer. Additionally, leaving room for media buys is crucial; this allows for future flexibility to offer increased commissions for promotional periods or to partners who can drive significant volume through paid advertising, without immediately exceeding the overall CAC. Finally, researching competitors and "like" brands' baseline rates helps a brand remain competitive in attracting and retaining high-quality partners. HR benefits are irrelevant to setting commission rates for external partners.