The Economics of Free Merchants: What Agents Earn Today and Later

What a Free merchant pays

The Free tier has no recurring subscription payment. That means a Free merchant produces $0 recurring commission while remaining Free.

But the Agent who signs the merchant receives the $10 setup fee. The setup fee recognises the work involved in getting the merchant started, and the Agent keeps 100% of it.

What happens after the signup

The economics are different from a paid merchant. There is no monthly subscription commission to collect yet. Instead, the Agent has a real merchant relationship that can be supported over time.

This is why a Free-heavy merchant book can feel different from a book with many paid merchants. Early on, an Agent may receive setup fees while seeing little or no recurring commission from those merchants.

Where the later opportunity comes from

If a Free merchant later upgrades to a paid tier, recurring commission begins under the normal 50% model. A merchant running $20 of apps pays $20 a month, so the agent earns $10. One running $40 of apps returns $20 a month. There is no ceiling — the commission is half of whatever the merchant spends.

The signing Agent keeps the claim through that upgrade, however long it takes. That gives the Agent a reason to keep supporting the merchant instead of treating the Free signup as a finished transaction.

The right way to think about Free merchants

• Today: the Agent can earn the $10 setup fee.
• While Free: recurring subscription commission is $0.
• If the merchant upgrades: recurring commission begins at 50% of the paid subscription.
• Long term: the signing Agent keeps the claim through the upgrade.

The lesson is patience without pressure. A Free-heavy book may produce setup income first and recurring income later. Agents should not promise upgrades; they should sign genuine businesses, support them well and let the merchant relationship develop.