Commissions are an essential part of affiliate marketing. Affiliates make promotions and bring in referral sales to earn commission on them. The process of paying the commission to affiliates is also a crucial part of an affiliate program.
Managing payments can considerably affect an affiliate program’s performance. It is, therefore, necessary to give special emphasis on commission payments to affiliates.
Here we look into some points that merchants should consider while managing the commission payments to affiliates:
A significant aspect of commission payments is timely and regular payouts. Affiliates should be paid their commission on time and at regular intervals. It is, therefore, recommended that merchants set payment terms that they can maintain.
Commission payments made on time and regularly can significantly change an affiliate program’s performance. It also increases the loyalty and trust of affiliates in the store program.
Merchants should provide affiliates, multiple payment methods for getting paid. Offering multiple payment methods also helps in bringing in more affiliates to the program. On the merchant’s end, the processing fee or similar charges should be considered while choosing a payment method.
Merchants should look into payment methods that are widely available and used in different countries or regions, as it allows for easier payouts. There is also the option to pay affiliates using store credits such as store discount coupons or gift cards.
There are various payment settings that merchants should consider while setting up their payment system for their affiliate program. Merchants should consider how to handle or balance commission/payments if a sale gets canceled or refunded.
Many affiliate marketing services do offer options for holding the commission until the return/refund period expires. Similarly, tax deductions options can also be looked into depending upon your region.
GoAffPro provides merchants with a whole host of options for setting up and managing their commission payments to affiliates. Options such as PayPal integration for sending payments from within the app, setting up multiple payment methods, payment terms, commission hold time, and the option for calculating tax deductions makes it simple and easy to manage commission payments for merchants. Check out the app: GoAffPro