Paying Affiliates Yourself Via Paypal?

Dennis Cheesman · 04-19-2009, 03:16 PM

Hi Warriors,

I am considering using PayDotCom.com or some other affiliate program to sell one of my membership sites and would really appreciate your input on some questions:

1) If I pay the affiliates myself via PayPal If any of them earn more than $600 in a year, will I need to send them a W-9 and a 1099's come tax season.

2) And, will I be responsible for sending the 1096 form to the IRS.

I have always used ClickBank so not sure how all this works.. It seems like a lot to have to try and find them and send it to them all especially if you had a lot of affiliates.

Any help will be greatly appreciated..

Dennis

Dan C. Rinnert · 04-19-2009, 03:27 PM

Quote:

Originally Posted by Dennis Cheesman

1) If I pay the affiliates myself via PayPal If any of them earn more than $600 in a year, will I need to send them a W-9 and a 1099's come tax season.

2) And, will I be responsible for sending the 1096 form to the IRS.

Yes. And now I need to add more characters to post this.

Dennis Cheesman · 04-19-2009, 03:38 PM

How in the world would you keep up with all that?

I mean how would you keep up with who made over $600 per year?

Dennis

Craig McPherson · 04-19-2009, 04:06 PM

You could use a script such as Rapid Action Profits which pays affiliates automatically.
Costs about $150 but takes the headaches away for sure.

Dennis Cheesman · 04-19-2009, 04:11 PM

How does Rapid Action Profits work?

I mean it seems like you could lose money this way if I am reading correctly?

Can some please explain it a little better?

Dennis

RenFromPenn · 04-19-2009, 04:16 PM

Just my two cents, but I'm thinking that you would want to send them that W-9 before tax time. Otherwise they might not get it back to you in time to get them their 1099.

Really, I would think that you might want to send them the W-9 before you even send them any payments. That is how a lot of affiliate networks go about it.

Craig McPherson · 04-19-2009, 05:29 PM

Dennis,

RAP is a great resource to handle affiliate sales.
You set the script up on your server (easy to do) and it allows you to dictate the % that affiliates get paid.

For example, if you set the % at 50%, the affiliate will be paid directly to their Paypal account for every second sale. You get the first,3rd,5th,7th etc and they get paid directly for the 2nd,4th,6th sale etc.

If you set it at 75%, You still get the first and the affiliate gets the 2nd,3rd and 4th. By you always getting the first eliminates affiliates buying thru their own link.

I have been using it since day 1 (maybe 2 years) and it work a treat. Sid Hale constantly improves it and there are multiple add-ons you can use.

Dennis Cheesman · 04-19-2009, 05:50 PM

Thanks Craig.. I see how it works now

I guess I must have been blind if it said that on the letter

So if someone comes that was not sent by an affiliate it will be credited to me correct?

Do a lot of people(affiliate marketers) trust it that you know of?

Thanks for the help..

Dennis

ElaineBaker · 04-19-2009, 05:59 PM

$7 Scripts work similar to the RAP .

You can set the commission % to whatever you want and the affiliate will be paid to their Paypal account. Works exactly the same for commission payments as Craig has explained with the RAP

I have been using the $7 script because is was a cheaper option for me.

Craig McPherson · 04-19-2009, 06:03 PM

Quote:

Originally Posted by Dennis Cheesman

So if someone comes that was not sent by an affiliate it will be credited to me correct?

Correct Dennis

Quote:

Originally Posted by Dennis Cheesman

Do a lot of people(affiliate marketers) trust it that you know of?

If you Google "powered by rapid action profits" it brings up about 1400 results. This term is in the footer of the sales page usually appended with the affilites link to RAP.

Don't quote me on this but I seem to remember the owner of this forum had a link to RAP here for some time a while back. There are also various threads here about RAP.

Another advantage using RAP is that you set the admin part of the script up on your server and you can run as many affiliate programs as you want on that domain.

Sid Hale is a member here. Search for him.
I am a RAP for it

Craig McPherson · 04-19-2009, 06:07 PM

Quote:

Originally Posted by ElaineBaker

I have been using the $7 script because is was a cheaper option for me.

Elaine,

I too initially used $7 script but upgraded to RAP as it has many more features.
They basically do the same thing though.

ElaineBaker · 04-19-2009, 06:14 PM

Quote:

Originally Posted by Craig McPherson

Elaine,

I too initially used $7 script but upgraded to RAP as it has many more features.
They basically do the same thing though.

Hi Craig

I have heard that RAP is probably a much better option - it was something I looked at before the $7 script but felt it was a bit out of my price range for the moment - but the $7 script works for me at the mo.

Jill Carpenter · 04-19-2009, 06:56 PM

Quote:

Originally Posted by ElaineBaker

Hi Craig

I have heard that RAP is probably a much better option - it was something I looked at before the $7 script but felt it was a bit out of my price range for the moment - but the $7 script works for me at the mo.

Thanks, I was not aware you could do the auto paypal, but I guess that makes sense.

I do think there is a way with RAP to disguise the affiliate link showing as the referral in the address bar and that is something I think is nice.

But you may have me re-visiting the 7 dollar option, and I may have to click a link in your signature

I could go either way, but why buy a ferrari if you are only driving in a small circle?

Dennis Gaskill · 04-20-2009, 12:16 AM

Ok, if you use RAP or the $7 script, am I correct in assuming you don't have to worry about all the tax stuff for your affiliates? I've always used Clickbank so I didn't have to worry about the tax stuff.

globalpro · 04-20-2009, 12:23 AM

Dennis,

With RAP or the $7 script, the affiliate gets paid direct. With nothing going through your Paypal account, there is nothing to report. Makes it very simple.

And the affiliates love getting paid right away. With a good product, it's a great draw for affiliates to promote.

Thanks,

John

Tsnyder · 04-20-2009, 12:25 AM

Quote:

Originally Posted by Dennis Cheesman

How in the world would you keep up with all that?

I mean how would you keep up with who made over $600 per year?

Dennis

I think you could set up a spreadsheet that would
keep track of everything in about 5 minutes.

Tsnyder

Virtual Banker · 04-20-2009, 12:25 AM

Quote:

Originally Posted by Dennis Cheesman

Hi Warriors,

I am considering using PayDotCom.com or some other affiliate program to sell one of my membership sites and would really appreciate your input on some questions:

1) If I pay the affiliates myself via PayPal If any of them earn more than $600 in a year, will I need to send them a W-9 and a 1099's come tax season.

2) And, will I be responsible for sending the 1096 form to the IRS.

Dennis

Another question, which has come up. If I have a product and am NOT USA (NOT EU either) based, (but my affilaites are)
and my paypal is NOT US.

do I have to do all this IRS stuff? Or just a simple payout to the paypal account will do?

Dennis Gaskill · 04-20-2009, 12:32 AM

Quote:

Originally Posted by globalpro

Dennis,

With RAP or the $7 script, the affiliate gets paid direct. With nothing going through your Paypal account, there is nothing to report. Makes it very simple.

And the affiliates love getting paid right away. With a good product, it's a great draw for affiliates to promote.

Thanks,

John

Thanks John. Disregarding the price, what are the advantages of RAP over the $7 script?

I know I could, and probably will, research it myself, but since you're familiar with it you may have insights I wouldn't pick up on right away.

Sid Hale · 04-26-2009, 02:45 PM

Dennis,

Quote:

Originally Posted by Dennis Gaskill

Thanks John. Disregarding the price, what are the advantages of RAP over the $7 script?

I know I could, and probably will, research it myself, but since you're familiar with it you may have insights I wouldn't pick up on right away.

Just to name a few....

no php code manipulation in product setup (products are defined via web form)
regular updates to the system (new features as well as bug fixes)
better fraud protection
different commission rates for JV partners vs. standard affiliates
ability to auto-pay equity partner on overall sales rather than commission (i.e. a true partner)
ability for affiliates to use a 'nickname' rather than their Paypal email address in their promotional links
affiliate area so affiliates can log in to pick up their affiliate links, and vistor/sales stats
affiliate tools page so that merchant (you) can set up promotional tools for your affiliates
broadcast mail system to send not only to customers, but also affiliates or JV partners
support for separate autoresponder system/service with separate opt-ins and lists for customers, affiliates, and JV partners
automatic optin for customers to any external autoresponder system/service
split testing of multiple sales letters
discount coupons
Add On architecture to accomodate 3rd party supplied extensions

and then of course...

The next release will be out within the next couple of weeks, with even more new features for all existing users.

VaultBoss · 05-15-2009, 12:40 PM

I am uncomfortable to be here just below you with your post, Sid, as you already know that I'm a fierce FAN of both RAP and Sid Hale.

Seems there is not much to add to all the above, in terms of features, benefits, etc...

However, I just wanted to jump in myself to simply say that I am very satisfied with RAP, especially the evolvement process that is continuous and the tremendous help from the RAP Forum members and from yourself.

Thank you, Sid!

04-19-2009, 03:16 PM	#1
Dennis Cheesman Senior Warrior Member War Room Member Join Date: Jul 2002 Location: Kaufman, Texas, USA. Posts: 1,555 Blog Entries: 1 Thanks: 25 Thanked 44 Times in 27 Posts	Paying Affiliates Yourself Via Paypal? Hi Warriors, I am considering using PayDotCom.com or some other affiliate program to sell one of my membership sites and would really appreciate your input on some questions: 1) If I pay the affiliates myself via PayPal If any of them earn more than $600 in a year, will I need to send them a W-9 and a 1099's come tax season. 2) And, will I be responsible for sending the 1096 form to the IRS. I have always used ClickBank so not sure how all this works.. It seems like a lot to have to try and find them and send it to them all especially if you had a lot of affiliates. Any help will be greatly appreciated.. Dennis
	HUGE high quality content package of 87 ClickBank reviews, 42 - 10 page reports, 360 related articles, and 399 related autoresponders... AND As a HUGE bonues I'm going to give YOU 24 - 20 page pet reports and 720 related pet articles.. (VERY LIMITED WARRIOR SPECIAL OFFER!)"

04-19-2009, 03:38 PM	#3
Dennis Cheesman Senior Warrior Member War Room Member Join Date: Jul 2002 Location: Kaufman, Texas, USA. Posts: 1,555 Blog Entries: 1 Thanks: 25 Thanked 44 Times in 27 Posts	Re: Paying Affiliates Yourself Via Paypal? How in the world would you keep up with all that? I mean how would you keep up with who made over $600 per year? Dennis
	HUGE high quality content package of 87 ClickBank reviews, 42 - 10 page reports, 360 related articles, and 399 related autoresponders... AND As a HUGE bonues I'm going to give YOU 24 - 20 page pet reports and 720 related pet articles.. (VERY LIMITED WARRIOR SPECIAL OFFER!)"

04-19-2009, 04:06 PM	#4
Craig McPherson Advanced Warrior Join Date: Oct 2006 Location: Melbourne Posts: 753 Thanks: 109 Thanked 300 Times in 152 Posts Social Networking	Re: Paying Affiliates Yourself Via Paypal? You could use a script such as Rapid Action Profits which pays affiliates automatically. Costs about $150 but takes the headaches away for sure.
	Chef Uniforms - Best Ladders - Anti Fatigue Mats Melbourne - Corporate Uniforms Melbourne

04-19-2009, 04:11 PM	#5
Dennis Cheesman Senior Warrior Member War Room Member Join Date: Jul 2002 Location: Kaufman, Texas, USA. Posts: 1,555 Blog Entries: 1 Thanks: 25 Thanked 44 Times in 27 Posts	Re: Paying Affiliates Yourself Via Paypal? How does Rapid Action Profits work? I mean it seems like you could lose money this way if I am reading correctly? Can some please explain it a little better? Dennis
	HUGE high quality content package of 87 ClickBank reviews, 42 - 10 page reports, 360 related articles, and 399 related autoresponders... AND As a HUGE bonues I'm going to give YOU 24 - 20 page pet reports and 720 related pet articles.. (VERY LIMITED WARRIOR SPECIAL OFFER!)"

04-19-2009, 04:16 PM	#6
RenFromPenn HyperActive Warrior War Room Member Join Date: Jul 2004 Location: An undisclosed location Posts: 201 Thanks: 2 Thanked 4 Times in 4 Posts	Re: Paying Affiliates Yourself Via Paypal? Just my two cents, but I'm thinking that you would want to send them that W-9 before tax time. Otherwise they might not get it back to you in time to get them their 1099. Really, I would think that you might want to send them the W-9 before you even send them any payments. That is how a lot of affiliate networks go about it.
	Pod Publicity: How to Take a Print-on-Demand Book From Obscurity to Profitability ...the techniques provided in these pages really do mean the difference between failure or ultimate success. - Dan Poynter, author of The Self-Publishing Manual

04-19-2009, 05:29 PM	#7
Craig McPherson Advanced Warrior Join Date: Oct 2006 Location: Melbourne Posts: 753 Thanks: 109 Thanked 300 Times in 152 Posts Social Networking	Re: Paying Affiliates Yourself Via Paypal? Dennis, RAP is a great resource to handle affiliate sales. You set the script up on your server (easy to do) and it allows you to dictate the % that affiliates get paid. For example, if you set the % at 50%, the affiliate will be paid directly to their Paypal account for every second sale. You get the first,3rd,5th,7th etc and they get paid directly for the 2nd,4th,6th sale etc. If you set it at 75%, You still get the first and the affiliate gets the 2nd,3rd and 4th. By you always getting the first eliminates affiliates buying thru their own link. I have been using it since day 1 (maybe 2 years) and it work a treat. Sid Hale constantly improves it and there are multiple add-ons you can use.
	Chef Uniforms - Best Ladders - Anti Fatigue Mats Melbourne - Corporate Uniforms Melbourne

04-19-2009, 05:50 PM	#8
Dennis Cheesman Senior Warrior Member War Room Member Join Date: Jul 2002 Location: Kaufman, Texas, USA. Posts: 1,555 Blog Entries: 1 Thanks: 25 Thanked 44 Times in 27 Posts	Re: Paying Affiliates Yourself Via Paypal? Thanks Craig.. I see how it works now I guess I must have been blind if it said that on the letter So if someone comes that was not sent by an affiliate it will be credited to me correct? Do a lot of people(affiliate marketers) trust it that you know of? Thanks for the help.. Dennis
	HUGE high quality content package of 87 ClickBank reviews, 42 - 10 page reports, 360 related articles, and 399 related autoresponders... AND As a HUGE bonues I'm going to give YOU 24 - 20 page pet reports and 720 related pet articles.. (VERY LIMITED WARRIOR SPECIAL OFFER!)"

04-19-2009, 05:59 PM	#9
ElaineBaker Warrior Member War Room Member Join Date: Dec 2008 Location: Wales, UK Posts: 204 Thanks: 40 Thanked 25 Times in 23 Posts Social Networking	Re: Paying Affiliates Yourself Via Paypal? $7 Scripts work similar to the RAP . You can set the commission % to whatever you want and the affiliate will be paid to their Paypal account. Works exactly the same for commission payments as Craig has explained with the RAP I have been using the $7 script because is was a cheaper option for me.
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04-20-2009, 12:16 AM	#14
Dennis Gaskill Senior Warrior Member War Room Member Join Date: Jan 2008 Location: Wisconsin, USA. Posts: 4,113 Blog Entries: 2 Thanks: 2,405 Thanked 3,422 Times in 1,592 Posts Social Networking	Re: Paying Affiliates Yourself Via Paypal? Ok, if you use RAP or the $7 script, am I correct in assuming you don't have to worry about all the tax stuff for your affiliates? I've always used Clickbank so I didn't have to worry about the tax stuff.
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04-20-2009, 12:23 AM	#15
globalpro John Burnette War Room Member Join Date: Aug 2007 Location: S.E. USA Posts: 1,049 Thanks: 661 Thanked 208 Times in 175 Posts	Re: Paying Affiliates Yourself Via Paypal? Dennis, With RAP or the $7 script, the affiliate gets paid direct. With nothing going through your Paypal account, there is nothing to report. Makes it very simple. And the affiliates love getting paid right away. With a good product, it's a great draw for affiliates to promote. Thanks, John
	Rapid Action Profits Installs, Design and Consulting

05-15-2009, 12:40 PM	#20
VaultBoss Acting As a Real Warrior War Room Member Join Date: Oct 2008 Location: Constanta, a beauty! Far-away Romania Posts: 202 Thanks: 28 Thanked 52 Times in 48 Posts Social Networking Contact Info	Re: Paying Affiliates Yourself Via Paypal? I am uncomfortable to be here just below you with your post, Sid, as you already know that I'm a fierce FAN of both RAP and Sid Hale. Seems there is not much to add to all the above, in terms of features, benefits, etc... However, I just wanted to jump in myself to simply say that I am very satisfied with RAP, especially the evolvement process that is continuous and the tremendous help from the RAP Forum members and from yourself. Thank you, Sid!
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