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In affiliate marketing, commission payment is a critical component. The affiliates agree to promote the products of your store, and for that, they expect to be paid. This revenue-sharing model is the basis of affiliate marketing.
Since affiliate marketing is low risk, affiliates only get paid when they bring in customers who purchase products on your store. It is a cost-effective way of marketing since you only pay commissions for sales that you get.
An important thing about payouts to affiliates is that payments need to be done timely. Since promoting a product take a lot of time and effort, payments to affiliates must be done on time.
Modes of payment are an important part of the affiliate program. It is always better to provide multiple payment options to your affiliates for getting paid. Since your affiliates can be from different countries or regions it is always better to have payment methods that work out for everyone.
- It is also important to set a minimum payout threshold since transactions can also cost fees. Setting such a limit will encourage your affiliates to cross the minimum threshold. You need to consider, that your spending includes both running an affiliate program and paying out commissions to affiliates.
To avoid misunderstandings, it is useful to communicate your minimum payout limit to your affiliates.
- It is always better to keep a fixed term of payments for your affiliates, you have a choice of paying your affiliates, weekly, bi-monthly, or monthly. You should choose the payment terms, that work out best for you.
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 problem faced by affiliates. Since affiliate networks grow through good reviews and word of mouth, it is important to take into consideration the problems faced by affiliates and sort them out. Having seamless payments for your affiliates helps in growing your affiliate program.
Check out our guide on how payments to affiliates work:
- Bank Transfer (SWIFT/ACH)
- Debit Card
- Google Pay
China/South East Asia
- Mercado Pago
- Store Discount Coupon
- Store Gift Card
Additionally, you can download the list of affiliates eligible for payouts from the Payouts > Pending Payments section in the admin dashboard. Then pay them using your preferred mode.
This 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 A has successfully referred a sale. The amount to be paid to him is $10 and his chosen mode of payment is PayPal. You can accordingly pay him.
GoAffPro also provides you with the option to view all 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 relevant actions.
The Payout tab helps you view both upcoming and past payments. It helps you plan and manage your finances for the affiliate program. This helps you in reaching your financial goals and not overspend.
Store credit is a currency for your ecommerce store that affiliates can choose to receive instead of money. Here, the affiliate is provided with either a store discount coupon or a gift card. It can then be used to make purchases in the 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.
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.