Affiliate payments are an essential part of the whole affiliate marketing process. Affiliates earn commissions on the referral sales that they bring to a store.
Affiliates promote the store or its products using referral links and coupons codes. When a customer visits the store using a referral link and makes a purchase or uses the affiliate’s coupon code, then that sale is recorded as a referral sale. The affiliates earn a commission on the referral sales that they bring.
Different models of payments
While there are different advertising models, where affiliates get paid for the clicks (PPC), views (PPV), or the sales (PPS) that they bring in. In affiliate marketing, mainly the pay per sale (PPS) model is preferred. The PPS model ensures that the affiliate gets paid only when they bring in sales. Affiliate marketing has a revenue-sharing model, where the revenue gets shared among both the merchant and the affiliate. The merchant earns the profit from the sale, and the affiliate earns commissions.
Setting up payment methods
In an affiliate program, the merchant firstly needs to set up the payment methods. These are the payment methods that affiliates can then choose from to get paid. Having multiple payment methods is good as it gives the affiliates ease of getting paid. For example, if a merchant is expanding their brand to a new region/country and wants to get local affiliates. It helps if the merchant supports payment methods that get used locally in that region/country.
Paying affiliates with store credits
Many merchants also use the store credit option to pay affiliate commissions. The store credit encourages the affiliate to use the commission that they have earned and make purchases on the merchant’s store. Store credits can be in the form of gift cards or discount coupons. The gift card allows the affiliate to use the money earned as commission to make purchases in the store, whereas the discount coupon option is used by the affiliate to get a discount on the purchases made in the store.
Making payments to affiliates easier
Additionally, options such as minimum payout or payment terms may be used to make payments to affiliates simpler The minimum payout amount is used to set a minimum commission amount that an affiliate needs to earn before they get paid. Setting up a minimum payout amount can make payments simpler as well as save money that would otherwise get spent on paying transactional fees for paying lesser amounts. The payment terms option can be used to set terms for affiliate payments, such as making payments weekly, bimonthly, or monthly.
Merchants must take care while making payments to affiliates. A common complaint that affiliates make is the delay in commission payments. By making payments on a regular and timely basis, improves the affiliate-merchant relationship and loyalty. It is, therefore, necessary to ensure that payments are a seamless process for both the merchant and the affiliate.
The GoAffPro app offers merchants with the option to set up multiple payment methods for affiliates, including store credits. It also offers options such as minimum payout amount, payment terms and more. Checkout the app: GoAffPro