If it's too good to be true, it probably is
 
Some master agents have large commitments and quotas with a supplier, and often make very aggressive compensation offers to its sales partners in hopes that these solution providers will contribute to this commitment, which helps the master agent stay within its contractual obligations with the supplier. Giving a high percentage of those revenues away to solution providers creates a groundswell of activity from the sales partners, Schuman said.   

Therefore, high margins and high compensation offers should be a major red flag for a prospective partner, he said. Solution providers shouldn't focus on getting paid the highest percentage, but ensuring they will get paid for the length of the contract.