Forum Moderators: martinibuster
A conspiracy theorist might suggest that they use this time to get interest on the money, but of course that would be perfectly normal business practice by todays standards.
It seems very normal to me.
Companies have to do final general journal entries (and adjustments) and close out their books to balance after month-end. That doesn't happen overnight. Then, some big companies (even smaller ones) outsource payroll processing to specialized companies, and that may be the case for ad revenues - so the transmission time and getting everything balanced out from an accounting perspective has a timeline to it. It even does when it's in-house.
It seems very normal to me.
You will notice on the limited SEC statements google has filed that the figures associated with adsense are very comprehensive. Adsense does not record total ad figures on a per site or per aco**** basis for inclusion in financial statements. Sure they deal with more than 1 big number, but the process is not a month long stretch of basic accounting work.
Now that they are required by GAAP to produce audited external statements, the process may even take longer or have kind of a backlog while they iron out all other accounting activity this first public period.
My best guess would that the accountants over at Google are limited in number, and have pleanty of other tasks to deal with each month. The process could be done within 5 days after the periods ends, but they have other things to do. The Interest theory could very well come into play. Google has already recieved the payment for adsense ads, that could be sitting in the bank gaining interest while they hold out to pay publisher cuts until a majority of the next months ad revenue is in to keep the bank full and the interest flowing.
Google, like most other companies, would like to minimize its cash to cash cycle by waiting as long as possible to pay out accounts payable.
Just a thought.
We have NO idea what their process is, and it's irrelevant. They keep their end of it flawlessly. I don't look a gift horse in the mouth.
Marcia is correct. Your primary concern should be that you are paid fairly and within the constraints of the agreement.
Google is a tricky entity to deal with as they are overly secretive in how they pay......but if you don't like that, then go somewhere else!
For me Google is the bottom of the barrel, but eventually you have to scrape that and just live with the consequences or say no to the dregs at the bottom!
We have NO idea what their process is, and it's irrelevant. They keep their end of it flawlessly. I don't look a gift horse in the mouth.
I would hardly call Adsense a gift. Remember, every dollar Google sends you is a dollar (or more) you earned for them. There is nothing wrong with being concerned with their payment policy and keeping them accountable for paying in a timely manner. They owe it to us - we are the ones that built a large portion of their business.
keeping them accountable for paying in a timely manner.
But they are paying in a timely manner. There may have been a snaffu at one time, but it is still way better than this other ad network that pays net 90 days.
Soo it is just bcuz of the money stuff that they wait that long?
No one knows what the wait is for.
As many have attested to, it's not a very long wait at all when you are talking about advertising companies.
It's not long at all compared to any company.
It's not long at all compared to any company
Well, that's a bit broad of a statement to say any company.
There are some vendors I work with that pay net 5 or net 15. Even fastclick pays exactly 20 days after the end of the month (which is a bit faster than google).
Still, it's better than most.
>>It's not long at all compared to any company
I should have said, It's not long at all compared against the average of all companies combined.
I must say that they're heads and above many other affiliate program payouts where one may wait in excess of 90 days, travel for example due to the timing of the hotel/airfare reservation. And when you have to absorb advertising expenses upfront to get the revenue paid out in 90+ days, it becomes a serious business consideration you have to plan for not to mention painful.
