Understanding Affiliate Marketing Payouts – why Affiliate Programs Need Affiliates That Help Affiliates?
Here’s the question: Why Do Affiliates Do Poorly With Most Affiliate Programs?
Affiliate Programs, also known as Associate Programs are just a way companies get massive traffic, sales, or members without the need to personally recruit new people for their business. If you are familiar with Network Marketing in the real world you will have no problem understanding Affiliate Programs. These companies recruit a sales force that only gets paid when they make sales or give direct referrals or leads. As an affiliate, you promote their products and services. In return, they will pay you a commission for each sale or membership you sell on their behalf.
The question that many affiliates ask is, “How and when do I get paid, and what is the payout or commission structure?” In this article, we’ll answer these questions and provide you with a complete understanding of the affiliate marketing payment process.
Understanding Affiliate Marketing Payouts
How and when do you get paid and What is the payout or commission structure?
One of the most important things to understand about affiliate marketing is the commission structure. Affiliate marketers receive a commission for each sale that is made through their unique affiliate link. The commission rate can vary greatly depending on the product or service being promoted, but the average commission rate is between 5% and 20%.
There are two types of affiliate marketing commission structures: flat-rate and percentage-based.
Flat-rate commissions are a set dollar amount that an affiliate earns for each sale made through their unique link. For example, if the product you’re promoting has a flat-rate commission of $50, you will earn $50 for every sale made through your link.
Percentage-based commissions are based on the price of the product being sold. For example, if the product you’re promoting has a commission rate of 10%, and the product is sold for $100, you will earn $10 for that sale.
Here are a few things to check on your Partner Program:
- How often are checks sent out and is there a minimum amount you must earn before you get paid?
If you have to earn $100 before you get paid you could be waiting a while. Pay attention to the payout structure of any program.
- Do you get paid for direct sales and sign-ups only or can you earn money on multiple levels or tiers? Do you get paid for the sales your affiliates make?
How and When Do Affiliate Marketers Get Paid?
Affiliate marketers usually get paid on a monthly basis. The exact date that affiliate marketers receive their payouts can vary depending on the affiliate program and payment method. Some affiliate programs pay affiliates weekly or bi-weekly, while others may have a longer payment cycle.
There are several payment methods that affiliate marketers can use to receive their payouts, including:
It’s important to choose a payment method that works best for you and your business. Some payment methods may have additional fees, so it’s important to consider these fees when choosing a payment method.
Minimum Payout Thresholds
Most affiliate programs have a minimum payout threshold, which means that an affiliate must earn a certain amount of commission before they can receive a payout. The minimum payout threshold can range from $50 to $100, but it can be higher or lower depending on the affiliate program.
Here are two examples of payout plans
First scenario: Single level or tier sales:
You only get paid for the direct sales you make.
You join a program that costs you $19.95 a month to be a paid member and pays you $10.00 a month for each affiliate you sign up that will pay the $19.95 each month for the products and services the company provides.
You sign up 10 people that pay $19.95 a month and you earn $10 from each person. You are sent a $100 check each month as long as all ten remain as paying affiliates.
With this program, you only make sales on people you directly sign up with and only for the sales you make yourself.
For you to make more money you must sign up more people willing to pay $19.95 each and every month.
This is a single-tier program. You only get paid for your direct sales or sign-ups.
Second Scenario: Multiple levels or tiers:
You also get paid for your affiliate’s sales.
You join a program that pays you $10.00 a month for each of the affiliates you have directly signed up with, but you also get $3.00 when your affiliate signs up as a paying member or makes a sale.
Those same 10 people will still earn you $100 each month just like the single tier, but now it gets more interesting.
Each paying person your affiliates sign up or for each sale they make will earn you another $3.00.
If each of your 10 affiliates signs up 5 new affiliates that will pay the $19.95 each month you will earn $3.00 times 50 people. So you will earn an extra $150 each month.
Now you are earning $250 instead of $100.
Now think about it for a minute. Okay, times up. Which plan do you think is the better one?
Most business owners are either too intimidated by affiliate programs to do anything, or they jump right in over their heads.
Both suffer because of it. The first person never gets to know the positive impact on one’s finances affiliate programs have, while the other never learns the ropes and gives up which leaves them in the same position as the first person.
There are a lot of great affiliate programs available, actually so many can be difficult to choose one, and that is when the cycle starts all over.
What is the solution to this problem?? Believe it or not, the answer is quite simple. DO RESEARCH!! Ask and you will receive.
If you really want to be a good affiliate and create other good affiliates don’t assume things. You need to know what you are doing.
Affiliate Programs Need Affiliates That Help Affiliates: Understanding Affiliate Marketing Payouts
What’s the plan then?
If you are completely new to affiliate programs you should be seeking help from people that you have learned to trust.
These people can give you a heads-up on the affiliate programs they are familiar with. Never be afraid to ask for help.
A recommendation goes a long way. Credibility is on the line every time someone recommends something. For this reason, your trusted friend should be giving you accurate information.
If you are already in an affiliate program and totally lost as to your next move you should be contacting those that are in the same program but have already figured it out. Again, if you don’t ask questions you will most likely not get any answers.
But I have just started and I don’t know anyone yet. Okay, that’s fair.
If this is you I would say you go to Google and do a search for “affiliate programs forum” or “affiliate programs” forum
This will give you a list of forums in which you can participate in. Once you are on the forums you can read the messages that other people have left.
Look through the posts to see how business is conducted so that you won’t say or do something against their policies.
Where better to ask for help than a place where like-minded people hang out and share their experiences online?
Don’t overlook forums, they are a source of valuable resources.
Affiliate Programs Need Affiliates That Help Affiliates: Understanding Affiliate Marketing Payouts
Here are some of the questions you should be asking people:
1. Do their products or services meet a need? If you are not meeting a need you are going to have a hard time promoting and selling the products and services.
2. Is this a single-tier or 2 tier program? Remember the above example. 2 Tier is going to allow you to earn more doing less. Keep in mind that even single-tier programs can earn you large quantities of money. So pay attention to the selling price and the payout you will receive.
3. How often and how do you get paid? How much do you have to have on account before you get paid? If there is a minimum amount you may have to wait a while before you see a check.
4. What kind of support system do they have in place? Are you able to ask questions and get answers right away? Can you see what your commissions are in real-time?
5. How much does it cost to get started? Most affiliate programs will let you start for free and that can be enticing. Then you find out that it costs $100 to actually start making money.
6. Are you required to have your own website? This is an added expense and maybe a surprise that you don’t need.
Affiliate Programs Need Affiliates That Help Affiliates: Understanding Affiliate Marketing Payouts
In Conclusion
To summarize, you need to research the programs you are curious about and be sure to go to forums where like-minded people hang out and ask lots of questions.
Look for affiliate programs that have a great support system and are easy to learn.
Consider the levels you can get paid on. You may find that a two-tier program will create more income with less work. Not without work, but with less work.
Related Article: How To Choose Your Affiliate Program
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Affiliate Programs Need Affiliates That Help Affiliates: Understanding Affiliate Marketing Payouts
