Limited Affiliate Payouts - What Do You Think?

Posted by angela on April 15th, 2008

affiliate program payoutsAs both and affiliate and an affiliate manager I just think having a minimum payout is a bad idea.

I mean as an affiliate unless I’m a major hitter or promote your product all the time I’m going to have money permanently trapped in limbo.

I’ve helped sell products for people where my commissions added up to less than $50 which is the payout limit. Now after seeing the limit I don’t want to do any more promotions (where I know I could make more sales) because I feel like I’ll have to keep promoting forever in order to continue to get the money from the program and I want my money when I make it! Other programs I’ve seen a limit on (now that I look for them) and decided I won’t bother promoting something where a payment I’m due is held.

I want to mention I LOVE the people and products who have the programs I’m part of with the limits. I’m just sharing my opinion as both an affiliate and an affiliate manager.

Also, when people put a limit on WHEN they pay me it makes me feel like they’re doing ME a favor by letting me have my money versus me doing them a favor by letting my list know about them. I know I’m small potatoes and not a full time affiliate marketer like they hope to attract, but the little guys/gals should count too!

From an affiliate manager point of view, yes, the big affiliates are going to make up the majority of your money but even then they don’t know how well your product converts and they may send you a ton of traffic and still not get the minimum so it may even turn them off unless they’re sure they’ll be getting payouts from you.

You never know when someone has a huge list or a major traffic site and are just starting to figure out affiliate marketing…this is the kind of person you want to discover YOUR affiliate program.

A client of mine recently had her bookkeeper (who I also use and love!) tell her that she should put a minimum so she doesn’t need to worry about doing affiliate payouts when there isn’t much there to payout. Yes, from the point of view of your time and the hassle to do a payout for $20 I completely understand……but again it comes back to your affiliates getting the money they understood they were promoting you for.

If you’re going to have an affiliate program you need to realize it can be one of the very most powerful things you do for your online business IF you treat your affiliates like GOLD and make sure they feel the love and appreciation you have for all the free work and valuable time they spend on you.

angela wills virtual assistant

ps. Want help setting up your affiliate program? Make sure you grab the free audio interviews and ebook at AffiliateCommotion.com

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Kelly said,

April 15, 2008 @ 8:39 am

Angela, I can’t stand minimum payout programs but if I’m confident I can hit the minimum within a short time I’ll still sign up.

I payout as little as 25 cents to Mom’s Talk Network Affiliates and that may be a bit silly, but I don’t want anyone waiting for their earnings or feeling like I’m holding their money hostage - which is exactly how I feel about some programs ;)

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