If you're a supplier or manufacturer spending thousands of dollars per month on digital advertising, this post might change how you think about growth. Not because advertising doesn't work -- it does -- but because there's a model that works better, costs less, and scales without limit.

It's called commission-based distribution, and Lesuto was built from the ground up to make it work.

The Problem With Paid Advertising

Let's start with the uncomfortable truth about digital advertising in 2026.

The average cost per click on Google Ads for e-commerce keywords is $1.50 to $3.00. The average e-commerce conversion rate is 2-3%. That means you're paying $50 to $150 to acquire a single customer. If your average order value is $200 and your margin is 40%, you're spending $50-$150 to make $80 in profit. On a good day, you break even. On a bad day, you lose money on every sale.

And it gets worse. Ad costs increase every year as more competitors enter the auction. iOS privacy changes have gutted targeting accuracy. Attribution is unreliable. Creative fatigue sets in faster than ever. The return on ad spend (ROAS) that worked in 2020 is a fantasy in 2026.

Suppliers are trapped in a cycle: spend more to maintain the same revenue, or cut spending and watch sales collapse. Neither option is sustainable.

The Commission-Based Alternative

Now imagine a different model. Instead of paying $50-$150 upfront to maybe acquire a customer, you pay a commission only when a sale actually happens. No click fees. No impression fees. No monthly budget. No wasted spend on shoppers who browse but never buy.

That's how Lesuto works for suppliers. You list your products, set a commission rate, and let a network of merchants do the selling. Each merchant brings their own audience, their own marketing channels, their own trust relationships. You pay commission only on completed sales.

The economics are transformative:

• Traditional advertising: $10,000/month budget, uncertain returns, rising costs
• Lesuto commission model: $0/month budget, pay only on completed sales, costs are fixed and predictable

The Growth Multiplier Effect

Here's where the math gets exciting. Let's compare two scenarios for a furniture supplier with an average order value of $1,200:

Scenario A: One Direct-to-Consumer Store

You run your own Shopify store. You spend $10,000/month on ads. At a $100 customer acquisition cost, you get 100 customers per month. At a 3% conversion rate from your ad traffic, you need about 3,333 visitors per month. Your monthly revenue is $120,000, but after ad spend, COGS, shipping, and overhead, your net margin is thin.

Scenario B: 100 Lesuto Merchant Storefronts

Each of your 100 merchants averages just 5 sales per month (a very conservative estimate -- some will do much more, some less). That's 500 sales per month at $1,200 each = $600,000 in monthly revenue. At a 25% merchant commission, you pay $150,000 in commissions, plus ~$60,000 in platform fees. Your revenue after commissions is $390,000.

But here's the key: you spent $0 on advertising. Every dollar of commission was tied to an actual sale. There's no wasted spend. No budget anxiety. No ROAS calculations. No creative team. No ad account management.

And the best part? Scenario B scales linearly. 200 merchants = double the revenue. 500 merchants = 5X. 1,000 merchants? You're doing $6 million per month with zero ad spend.

How It Works in Practice

Step 1: Set Your Commission

When you create your supplier profile on Lesuto, you choose your commission rate. This is the percentage of each sale that goes to the merchant who made it happen. We recommend starting at 20-30% for most product categories.

Higher commission rates attract more merchants. Think of your commission rate as your "advertising budget" -- except instead of paying upfront for clicks, you're paying after the fact for sales. A 25% commission on a $1,200 sale ($300) is cheaper than the $100+ it would cost to acquire that same customer through ads, and you only pay when the sale closes.

Step 2: Optimize Your Catalog

Merchants choose suppliers based on product quality, price points, and commission rates. To attract the best merchants:

• Use high-quality product images (multiple angles, lifestyle shots)
• Write detailed, accurate product descriptions
• Price competitively for your category
• Offer a reasonable return policy (builds merchant confidence)
• Keep your inventory stocked (out-of-stock products frustrate merchants and their customers)

Step 3: Let Merchants Find You

Once your catalog is approved for the marketplace, merchants can discover and subscribe to your products. Merchants with "all" subscriptions automatically receive every new product you add. Merchants with "selective" subscriptions choose specific collections.

Step 4: Focus on What You Do Best

With distribution handled by your merchant network, you can focus on what actually matters: making great products. Invest in product development, quality control, packaging, and fulfillment speed. These are the things that drive customer satisfaction, repeat purchases, and merchant loyalty.

Why Commission Beats Advertising

Let's count the advantages:

1. Zero risk: You never pay for a click that doesn't convert. Commission is paid only on completed, shipped orders.

2. Predictable margins: Your commission rate is fixed. No auction-based pricing, no seasonal spikes, no competitor bidding wars.

3. Compounding distribution: Every new merchant is a permanent sales channel. They don't "expire" like an ad campaign. A merchant who joined six months ago is still selling your products today.

4. Diverse audiences: One ad campaign targets one audience. 100 merchants target 100 different audiences across different demographics, geographies, and interest groups.

5. Trust transfer: When a merchant recommends your product to their audience, it carries more weight than a banner ad. People buy from people they trust.

6. No creative fatigue: You don't need to produce new ad creative every two weeks. Merchants create their own content, write their own recommendations, and market in their own style.

7. No platform dependency: If Facebook changes its algorithm or Google raises its CPCs, your revenue doesn't collapse. Your merchant network is diversified and independent.

Real Numbers: The First 90 Days

Here's a realistic growth trajectory for a new supplier on Lesuto:

• Month 1: 5-10 merchants subscribe. Revenue from Lesuto: $5,000-$15,000.
• Month 2: Word spreads. 20-30 merchants. Revenue: $20,000-$50,000.
• Month 3: Established merchants bring their audiences. 40-60 merchants. Revenue: $50,000-$100,000+.

By month 6, top suppliers on the platform have 100+ active merchants and are generating six figures monthly with zero advertising spend.

Getting Started

If you're a supplier or manufacturer ready to replace your ad budget with a commission-based growth engine:

1. Sign up at lesuto.com/sign-up as a supplier
2. Upload your catalog with high-quality images and descriptions
3. Set your commission rate (we recommend starting at 20-30%)
4. Apply for marketplace approval so merchants can discover you
5. Focus on product and fulfillment while your merchant network grows

The suppliers who join early get first-mover advantage. Merchants are actively looking for new product catalogs to add to their storefronts. The ones who subscribe to you first will be your most loyal, highest-volume partners.

Stop paying for clicks. Start paying for sales. The math speaks for itself.