Payouts
Commission payments to affiliates
Last updated
Commission payments to affiliates
Last updated
In affiliate marketing, commission payments to affiliates play a vital part. They incentivize affiliates to promote products, driving traffic and sales to your store. This revenue-sharing model is the foundation of affiliate marketing.
Affiliates only get paid when they bring in customers who purchase in your store. It makes affiliate marketing cost-effective since you only pay commissions for referral sales.
A significant aspect of payouts to affiliates is ensuring timely payments. Since promoting a product takes time and effort, payments to affiliates must also be made on time.
Good performance and loyalty of affiliates are integral parts of a successful affiliate program. The easiest way of gaining more loyal affiliates is by having a smooth and streamlined process for payments to affiliates.
According to a survey by Tipalti, 47.6% of people reported that they dropped out from an affiliate program due to payment problems, for the rest of 52.4%, 46% of them said that they would drop out of an affiliate program if any problems arise in payments.
The top issues faced by affiliates regarding payments were:
This suggests that late payments were the leading issue faced by affiliates. Delayed payments can lead to dissatisfaction, potentially causing affiliates to disengage. As affiliate networks grow through good reviews and word of mouth, it is important to take into consideration the problems faced by affiliates and resolve them.
Having seamless payments for your affiliates helps in growing your affiliate program. They build trust and motivate affiliates to continue their marketing efforts. Thus, maintaining a consistent payment schedule is key to a successful, long-term affiliate marketing strategy. It fosters a positive, productive relationship between merchants and affiliates, contributing to mutual growth and success.
The Payments section shows you the pending payments of affiliates. The affiliates whose names you see in this section have successfully referred sales, and are ready to get their commission paid to them.
For example, "Affiliate Name" has successfully referred a sale. The amount to be paid to them is $10, and their chosen mode of payment is PayPal. You can accordingly pay him.
The Payment History section displays previous payments that have been to affiliates. It showcases the date of the payment, affiliate name, amount paid to the affiliate, mode of payment used to pay the affiliate, and actions.
The Payout tab helps you view both upcoming and past payments. It helps you plan and manage your finances for the affiliate program.
Modes of payment: It is always better to provide multiple payment options to your affiliates for getting paid. Since your affiliates can be from different countries/regions, it is always better to have multiple payment options to make it easier for them to receive payments.
Minimum payout threshold: You can also set a minimum payout threshold since transactions cost fees. Setting a minimum limit will encourage your affiliates to earn enough commissions to cross the threshold. You need to consider that your spending includes both running the program and paying out affiliates.
Payment terms: Ideally, you should keep a fixed term of payments for your affiliates. For example, you can pay your affiliates on a weekly, bi-monthly, monthly basis, etc. Set the payment terms that work out best for you, and stick to it regularly.
To avoid misunderstandings, it is useful to communicate your modes of payment, minimum payout amount, and payment terms to your affiliates. GoAffPro does display these to affiliates, in their dashboard, when you set them.
Store credit is the currency for your store that affiliates can choose to receive instead of money. With store credits, affiliates are paid with either a store discount coupon or a gift card. Both of these can be used to make purchases in your store.
The difference between a store discount coupon and a store gift card is, that store credits get added to the gift card which is both reusable and can be clubbed, while the discount coupon that gets generated, can only be used once and cannot be clubbed.
For example, Affiliate A can choose instead of receiving $50 in money, $50 in discount coupons, or store credits, where he can choose to use these credits to purchase at your store.
GoAffPro helps you set up store credit payments for your affiliates. These get generated/credited automatically on your behalf and are given to the affiliate.
