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$500.00 Affiliate Payment Threshold

Is that a high amount or a fairly common amount?

     

Webwork

5:37 pm on Dec 7, 2008 (gmt 0)

WebmasterWorld Administrator webwork is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



How common is a $500.00 USD threshold for payment of an affiliate commission?

Are there industries where this is the norm?

I was a bit shocked to see this and was wondering if it's only because I'm new to the marketplace. I thought payment thresholds ran closer to $50.00 or so in a month for most programs.

jimbeetle

5:43 pm on Dec 7, 2008 (gmt 0)

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I'm not sure if I've ever seen anything more than a hundred bucks as a threshold, with many at $25 and $50.

Is this program for high-ticket items that makes the $500 reasonably attainable? If not, I'd shy away from giving them my money to play with.

Webwork

6:03 pm on Dec 7, 2008 (gmt 0)

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Thanks jimbeetle.

Sales likely in the $150-$200. range. 8-10% commission. Year round sales with seasonal/holiday peaks likely.

Marcia

6:45 pm on Dec 7, 2008 (gmt 0)

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>>Sales likely in the $150-$200. range. 8-10% commission

That doesn't warrant a $500 payment threshold. There are programs with equal % and considerably higher avg sale amounts with a tenth of that requirement for payout.

$500 is ludicrous.

buckworks

8:02 pm on Dec 7, 2008 (gmt 0)

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$500 is an unusually high payment threshold.

That may be the company's way of recruiting large producers only and discouraging smaller affiliates from joining their program.

There are a few topic areas in which I wouldn't hesitate over a $500 threshold because I'd be confident about delivering enough business to reach the threshold. In other areas I would simply avoid that merchant, because their apparent goals wouldn't be a good fit for what I could deliver.

onepointone

7:33 am on Dec 8, 2008 (gmt 0)

5+ Year Member



You shouldn't have to make 30+ sales to get paid.
Actually the way I look at it, you shouldn't have to make 30+ sales to see if you will get paid.

purplecape

4:23 pm on Dec 8, 2008 (gmt 0)

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Amazon is $10 for direct deposit, I think, and $100 if by check...

That seems very high.

Jane_Doe

4:40 pm on Dec 8, 2008 (gmt 0)

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In this day and age of computerized book keeping and electronic deposits, all of those thresholds are consumer rip offs.

travelin cat

5:14 pm on Dec 12, 2008 (gmt 0)

WebmasterWorld Administrator travelin_cat is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Yep, $500 is a ripoff. They're holding your money for no reason at all. We have participated in dozens of affiliate programs over the past 12 years and I can't recall any being higher then $100.

cdcaveman

11:44 pm on Dec 13, 2008 (gmt 0)

5+ Year Member



I concurr! Some more creative financing of holding your money. i would say, affilate marketing is a very unregulated market and there for prone to getting ripped off. you can delivery tons of marketing to a site and alot of times not get the commission . stick with bigger companys that have itegrety

skibum

6:32 am on Dec 20, 2008 (gmt 0)

WebmasterWorld Administrator skibum is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Should be $50 - $100/max.

diddlydazz

9:29 am on Dec 20, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



$500 seems way over the top to me too

the highest i have seen is $150, and that was with an average ticket price of $1000 at 6% commission

go with your gut feeling Webwork

skibum

5:52 am on Dec 22, 2008 (gmt 0)

WebmasterWorld Administrator skibum is a WebmasterWorld Top Contributor of All Time 10+ Year Member



If you're gonna be big though, it can be nice to be able to set the minimum payment. If you're coming down to the end of the year and the next 10K you're going to get is going to bump you up a tax bracket then as long as you are confident the company isn't going to go under, you may want to set the payout threshold at 20K. Might also work if getting that income during a particular time period would make one not able to collect unemployment.

Marcia

8:45 am on Dec 22, 2008 (gmt 0)

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



This sounds like it has the makings of an affiliate Ponzi scheme, where commissions would be held for so long that the current sales revenue is used for paying off their past accounts payable and obligations. Not to mention how many people will accrue sales and will never reach the $500 payout minimum.

davewray

12:12 am on Dec 28, 2008 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



A $500 payment threshold would throw up red flags for me. As mentionned previously, $25 to $50 is the norm for most affiliate programs/networks...

coolguythampy

6:03 pm on Jan 13, 2009 (gmt 0)

5+ Year Member



No way i am going to sign up for a 500$ threshold

leadegroot

9:05 am on Jan 18, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I wouldn't sign up for a $500 payment level with those sales averages and percentages.

(Sidenote: $100 might be high for some, but I find it useful for foreign schemes - I don't want $10 cheques. The bank fees to convert foreign cheques are often that much. Ideally a scheme should let me set my payout level, with some reasonable minimum. $50 seems reasonable to me - YMMV)

maymorgano

12:31 pm on Jan 27, 2009 (gmt 0)

5+ Year Member



We pay at $100

farmboy

3:59 pm on Jan 27, 2009 (gmt 0)

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That may be the company's way of recruiting large producers only and discouraging smaller affiliates from joining their program.

I agree. When you have an affiliate program that attracts the masses, it's like throwing a fishing net into the sea. You'll get some fish, but you'll also get some crabs. Crabs cause headaches, create extra work, etc.

This might be a company that wants to deal with a small number of good fish while keeping out as many crabs as possible.

If this is a good company and a good product, you might consider getting in contact with their affiliate manager. Explain how you'll be a good affiliate, have a good site, have good visitor numbers, etc. and explain your concern. They just might grant you a lower threshold or give you a good explanation why they need to stick to that $500 threshold.

The $500 threshold alone wouldn't turn me away, I'd need more information.

But I would also need an assurance that if I want out in a few of months and haven't reached the threshold, I could still get the amount I had earned.

FarmBoy