Welcome to WebmasterWorld Guest from 3.214.184.124

Forum Moderators: eljefe3 & skibum

Message Too Old, No Replies

Need your Expert advice please regarding paying Affiliates. Thanks

Need your advice regarding paying Affiliates. please.

     
5:10 pm on Sep 29, 2008 (gmt 0)

Full Member

10+ Year Member

joined:May 3, 2004
posts:316
votes: 0


Hey guys:)

I was thinking about starting an Affiliate program
where i would pay affiliates for promoting products.
Problem is i don't know how this is done as far as *If* i'm supposed to gather the affiliates information/social # etc. and then report that to the government.

Q1. And well, I was wondering when you guys pay Affilates, how does this work as far as *IF* i'm supposed to gather their info and social # of each one and report that?

I'm in California, USA and as far as i know, i think that when u pay someone i think your supposed to report the social security # of anyone you pay. (they promote your product and you pay them a commission.)

Are they supposed to be acting as *independent contractors that you pay? Not sure how this really works. I have never ran an Affiliate program and would like to know what i'm supposed to do as far as if i'm supposed to get their info, social # etc and then report
that?

Q2. To you guys that Run Affiliate programs and pay others (your affiliates),
*Do u just pay your affiliates/members and that's it?
Or do You or "Are you supposed to" collect their social and other data. How is this done?

Please explain:)
In need your guy's help. I'd like to hear from someone who has or is running an Affiliate program and is paying his or her affiliates.

Thanks for the help guys:)
I really appreciate the help.

frenzy

7:34 pm on Sept 29, 2008 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Nov 19, 2002
posts:2139
votes: 0


Yeah, you gather everything.

Get an accountant....fast.

2:51 am on Oct 1, 2008 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:Feb 13, 2008
posts:827
votes: 0


Or advice from a lawyer with experience in this area. What you need to do isn't complicated, but you need to be sure you do it right. I've been working as an affiliate for a few years and know more than you do, which astonishes me, so I can only suggest that you get expert help.
3:25 am on Oct 1, 2008 (gmt 0)

Senior Member from MY 

WebmasterWorld Senior Member vincevincevince is a WebmasterWorld Top Contributor of All Time 10+ Year Member

joined:Apr 1, 2003
posts:4847
votes: 0


What I have read indicates that at a minimum...
  • You need to record all the payments made, and the SSN of the person to which it was made
  • You need to issue forms (W3?) for all affiliates paid over a certain threshold
  • Payments made to overseas affiliates will be a different matter yet again

    Personally I would not get a specialised lawyer or accountant in just for this. Your usual business accountant should be fine.

    Read the IRS website as well - there is a wealth of useful information there - and if in doubt about any of that telephone them during office hours and they should be able to explain things.

    The best option may well be for you to use an established affiliate network. This saves you all the paperwork and accounting associated with running the programme yourself as well as providing you with exposure to a large number of potential affiliates.

  • 2:14 pm on Oct 1, 2008 (gmt 0)

    Full Member

    10+ Year Member

    joined:May 3, 2004
    posts:316
    votes: 0


    Hey guys:)

    Thanks alot mfishy, purplecape, and vincevincevince
    for the great information:)
    I'll need to look into all of it as soon as
    possible.

    I researched and i have a few other questions. I read that you are supposed to make sure the person you pay is able to be paid by being/acting as an independent contractor. And i think that he is supposed to be checked out somehow before you can even use the person as an affiliate and pay them.

    Q.1. Does the governement do this for you and then confirm that u can indeed use the person as an affiliate and pay them?
    Q2. How long does that take?
    Q3. Also, i've seen some sites that sell membership type scripts that say that u can instantly add affiliates into them and then pay them.
    > How could anyone start mass marketing a site with affiliates if u have to check out every single person before they can even do anything let alone begin paying them? Would'nt that take forever?
    Q.4 Any ideas how that is done quickly or is this a slow process
    for each person being checked out?

    Well, thanks again guys for all your answers:)
    Well appreciated:)

    frenzy

    6:38 pm on Oct 4, 2008 (gmt 0)

    Senior Member

    WebmasterWorld Senior Member 10+ Year Member

    joined:Feb 13, 2008
    posts:827
    votes: 0


    Are you asking about the US? If so, and if you don't want to hire an accountant to help with this, you should really research this on the IRS web site for full details.

    In the US, the gov't does NOT check people out in the way you asking. You need to have your affiliates fill out a form, either electronically or on paper, saying who they are and stating what their tax status is. You would then need to issue 1099s to them at the end of the year if they had earned over $600, and tell the IRS which of your affiliates had income of over $600, and exactly how much it was for each of them.

    But like I said, go to the IRS web site. They have many helpful documents. I'd assume the UK Inland Revenue site provides similar info for the UK....

    7:31 pm on Oct 4, 2008 (gmt 0)

    Senior Member

    WebmasterWorld Senior Member marcia is a WebmasterWorld Top Contributor of All Time 10+ Year Member

    joined:Sept 29, 2000
    posts:12095
    votes: 0


    It's a lot easier to go through a network and let them go through all the tax ID and IRS details. The network does it all, and affiliates don't have to go through the hassle of giving out their detailed personal information to what could be dozens of individual site owners - who may or may not be trustworthy or well known.

    The network functions as the trusted third party and handles all of the affiliate financial matters, including tax reporting, issuing 1099's and making payments.

     

    Join The Conversation

    Moderators and Top Contributors

    Hot Threads This Week

    Featured Threads

    Free SEO Tools

    Hire Expert Members