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Paying Affiliates - Is this the "norm"

by BerkleyStreet
10 replies
I was reading about a digital payment and delivery system which i found through a link here. They set it up so that if you want to have affiliates, the system sends a certain amount of payments to you and to your affiliates.

For example: If i wanted to pay 50% commission - the system would send the first sale to me and the next to the affiliate. If i wanted to pay 25% commission - the system would send every fourth sale to the affiliate.

I guess the benefit of this is that they get instant payment through PayPal.

My question is this - Is this a normal way to pay affilliates? Are affiliates in general comfortable with this type of arrangement?

I'll be setting up a few products within the next couple of weeks and was wondering if i should go this way.

Thanks in advance....
#affiliates #norm #paying
  • Profile picture of the author globalpro
    Hi,

    It depends on how you define 'normal'. What you are talking about is something affiliates love. Nothing wrong with getting paid right away for sales from a promotion.

    Thanks,

    John
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    • Profile picture of the author Alexa Smith
      Banned
      [DELETED]
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      • Profile picture of the author BerkleyStreet
        Right - that's what i was thinking. The affilliate would have to make 4 sales to earn ANY money at all. I'd have to look at what kind of tracking and reporting system they have.

        I wasn't planning on offering anything less than 50% anyways, so i thought that this would be a good way to to about it.

        GlobalPro - You think that affilliates wouldn't mind waiting for four sales to earn a commission in exchange for instant payment? The system always pays the "owner" first.
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        • Profile picture of the author Paul Myers
          I wasn't planning on offering anything less than 50% anyways, so i thought that this would be a good way to to about it.
          If they're not expecting to make more than 1 sale, that's a concern. In more ways than one.

          Otherwise, it's not an issue.


          Paul
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          Stop by Paul's Pub - my little hangout on Facebook.

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          • Profile picture of the author BerkleyStreet
            LOL - Of course, thanks Paul - there i go missing the obvious again....
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      • Profile picture of the author Paul Myers
        Alexa,
        So instead of (say) a 25% commission, the affiliate has on each sale "a 25% chance" of a commission four times the size?! Bizarre. How are affiliates supposed to know whether they're actually being honestly paid what they've earned? :confused:
        If it's using Rapid Action Profits (most likely), they can log in and see what the commission rate is, and what kind of conversion they're getting, etc. RAP is a trusted script by all the affiliates I've heard from.

        It's not a percentage chance. It's close to sequential. If the commission is 50%, they get every other sale. If it's 25%, they get every fourth sale. It's possible for the system to send the merchant or the affiliate two sales at the same time, if it sends them to Paypal both at once, but it's got math in it to correct for such anomalies over time.


        Paul
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        Stop by Paul's Pub - my little hangout on Facebook.

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        • Profile picture of the author Sid Hale
          Thanks Paul,
          Originally Posted by Paul Myers View Post

          Alexa,If it's using Rapid Action Profits (most likely), they can log in and see what the commission rate is, and what kind of conversion they're getting, etc. RAP is a trusted script by all the affiliates I've heard from.

          It's not a percentage chance. It's close to sequential. If the commission is 50%, they get every other sale. If it's 25%, they get every fourth sale. It's possible for the system to send the merchant or the affiliate two sales at the same time, if it sends them to Paypal both at once, but it's got math in it to correct for such anomalies over time.
          I would only add that once the affiliate makes one sale, he is "behind" - so he will always get paid on the second sale (even if the commission rate is 25%, or even 10%).

          That puts the affiliate at 50% until their third sale. Who gets that depends on the commission rate that the merchant has set. If the rate is 50% or less, it's the merchant's turn. If the rate is greater than 50%, then it's still the affiliate's turn to be paid- so he gets the third sale.

          Any time the affiliate has earned less than the stated commission rate, the system will award him/her the next sale that they refer, and the merchant never touches the money. It's paid directly from the customer into the affiliate's Paypal account - instantly (i.e. no waiting until the 15th of the following month) - and the customer is returned to a secure download page on the merchant's site.

          Needless to say... affiliates love it (at least that's what my 800+ affiliates tell me).
          Merchants do, too (I can speak to that from first hand experience).
          Signature

          Sid Hale
          Coming Soon... Rapid Action Profits (Pro)

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  • Profile picture of the author seasoned
    ANOTHER thing too! YOU run the site! YOU have to support it. YOU are the one that will be asked for 100% refund if there is a problem. HOW does that work?

    steve
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    • Profile picture of the author globalpro
      Most of the vendors stipulate this as part of the terms, that if a refund request is made (should go to the person that got the money) and the affiliate got the sale, they would honor the request.

      If not, RAP has the ability to 'ban' an affiliate from any future sales.

      So far, it hasn't been reported as a problem.

      Thanks,

      John

      Originally Posted by seasoned View Post

      ANOTHER thing too! YOU run the site! YOU have to support it. YOU are the one that will be asked for 100% refund if there is a problem. HOW does that work?

      steve
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