How Much Are You Giving Away?

Ahhhhhh, numbers! If I had a dollar for each travel professional that told me they are not good at their financials, I would be on a beach in Hawaii right now. The funny thing is that you don’t have to be good at numbers to be on top of your financials. You just have to be willing to set goals, track your results and analyze them. (I teach you how to do this in the Make Money Selling Travel Blueprint. CLICK HERE to learn more.)

One thing we discover in our private coaching sessions is that many travel professionals don’t know how to set goals or analyze their results. And when we dig deeper, we find a huge hole in one very important piece to the puzzle that so many travel professionals are completely blind to.

Want to know what that is? I’ll tell you in two words. Commission split. Yes, if you are an independent contractor with a host agency, what is your commission split? The industry norm lies somewhere around 75 – 80% for someone with experience and trackable sales. Your portion of the split will be lower if you are newer to the business, receive leads generated by your host, receive marketing from your host, or work in an office and benefit from a desk, phone, walk-in traffic, etc.

But the big hole is that many independent contractors never even consider a 100% commission split. Why? Because they see the hefty monthly fee that varies from $350 – $600 per month and ASSUME they can’t afford it. Problem is that they assume and have NEVER actually done the math. In this article, we are going to do the math. Don’t worry – it’s pretty simple, but you might be surprised at the results. I want you to see that not only can you possibly afford it, it might even put thousands of dollars in your pocket each year. It might stop the bleeding, even if the host agency paying you the 100% commission has lower commissions with top suppliers than the host agency paying you a split.

So let’s do an apples to apples comparison. This analysis assumes the average commission from your suppliers on your total annual sales is 11% and the monthly fee for the 100% commission model is $350 per month.



As you can see from the table, with travel sales as low as $300,000 annually, you can put over $4,000 per year back into your wallet when you pay a fixed monthly fee instead of going with a commission split and no fee. What’s more convincing is when you grow your sales. Imagine how much money you will give away if you stay in a commission split model when you grow your business to $450,000, $600,000, or more in sales. Doing the math and transitioning to the 100% commission model is the definition of working smarter instead of harder.

I did this math for my travel business exactly 10 years ago when I was on a 70/30% commission split. I took the leap of faith, committed to paying over $400 per month, found a fantastic host that offered the 100% commission model and instantaneously made more money. It was one of the best decisions I ever made for my business and I never looked back. Now, 10 years later, I am surprised at how many independent contractors haven’t done this math themselves.


If you are an independent contractor on a commission split with your host agency, get your most recent annual sales report. Look at your total sales, how much of your commissions generated were paid to your host and compare that to the annualized monthly fee of a host agency offering the 100% commission model. Do the research. Do the math. It could be a great turning point for you.

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