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Payout Terms

Is anything too high or too low?



5:35 pm on Jun 4, 2009 (gmt 0)

5+ Year Member

I'd like to suck up all of the affiliates I can, so here are the terms that I'm considering. Please let me know what you think of the terms and if anything is too high or too low.

These numbers are realistic.

Initial Bonus for signing up: $499
Payout Minimum: $500
Commission Rate - Recurring: 5% of monthly invoice for the life of the contract.
Two-tier override Commission Rate: 0.5% of monthly invoice for the life of the contract.

Average monthly invoice: $150 for one high-volume product, $2600 for the remaining low-volume products.

Payment made 30 days after the end of the month in which the transaction occured.

Am I missing anything?

What do you think about the recurring monthly invoice payout for the life of the contract?

What scam or abuse should I watch out for?

What do network affiliates want that would be different than what a single affiliate might want?

Thank you for your comments and insight.



6:03 pm on Jun 4, 2009 (gmt 0)

WebmasterWorld Senior Member 5+ Year Member

So basically I'd have to make ONE sale to get above $500 and get 500 bucks?
Unless you'll handpick your affiliates, don't do that, there'll be people lining up to sign up and have their friend place on order via their affiliate id, requesting payout and never do anything again.

I love the recurring payments. Has always annoyed me with some companys, I send them customers that pay good money for years and I'm compensated with a low one time payment. That'll definetly keep the motivation going.

Watch out for people requesting payouts and then having their friends cancel the contracts and charge back the money. You'll attract those people with a huge starting bonus.

I'd recommend no bonus just for signup. Those who realize they can make good money with you will sign up without a bonus, and those that'll do it for the bonus are not the ones you want because they'll hardly ever bring business.
If you want that extra motivation, put it on milestones, e.g. give $50 bonus for every 10 active referrals an affiliate has (that is, 50 once he had 10 actives at the same time, another 50 once he had 20 etc).


6:21 pm on Jun 4, 2009 (gmt 0)

5+ Year Member

Thanks for your suggestions. I'm with you on the risky nature of a signup bonus, and I like the idea of a sliding bonus based on milestones.

What specific terms would attract network affiliates, and what terms would attarct single affiliates?



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