JVZoo - Instant Payments or Delayed? I'm doubting my policy!

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Ok so it's that age old JVZoo question, when to pay your affiliates, instant or delayed?

Now I thought i had this down, my policy was to only approve affiliates I have history with or have been interviewed on Skype to help weed out the risky or fraudulent ones...after all we are going into business together.

However...

I've start to notice that most affiliates with high sales request instant payments and the moment you raise having a chat first they go silent and stop responding.

...now I've been putting this down to the fact that they must be dodgy! But many people that sell online may not feel comfortable or offended been asked to speak first and therefor go for other products. The number of lost (large) affiliates can't be completely ignored or brushed off as scammers.

If JVZoo's refund policy is truly enforced, then any user who they cannot get a single refund off has their account banned. therefor anyone with 1000's of sales "should" be vetted??

I've considered having a blanket policy of anyone over 250+ sales gets instant payments automatically and anyone below still gets vetted.

What do you think?? Need some experienced brains on this one, and if you have had issues with users who had sales, can you let us know how many they had? Cheers. G
#main internet marketing discussion forum #delayed #doubting #instant #jvzoo #payments #policy
  • I've always stuck with delayed, anyone who can rock 1000's of sales shouldn't need instant payments. I always would be suspicious of someone that wanted to sell my product but wouldn't talk to me in a chat window. Honestly, that seems shadier to me that wanting instant payments.

    An affiliate is a business partner, regardless of what you call them or how they get paid. I personally wouldn't work with someone that wouldn't talk to me; that's just bad business. Just my opinion though.
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  • You got to understand that some affiliates might not want to talk a lot and only promote for products. Sometimes as an affiliate it is annoying to get a lot of questions from the product owners so they tend to ignore them and might even changed their mind in promoting your product. Just to save the hassle.

    You got to understands that these affiliates with a lot of sales in their name can easily promote anything they want. Not to mention the amount of products being launched everyday.

    It is best that you put all your possible question on the part of JVZoo where affiliates can apply to promote. If they don't answer those question maybe a followup if they don't respond just move on.
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    • Thanks guys some good points.

      Marked09 thanks for the insight I did think that was what may be happening, it's a shame but it does feel like we have to take a leap of faith with some affiliates to get the most out of our launches. What is the minimum number you would automatically give instant payments to?
    • I have to agree with Big Mike.

      Anonymous affiliates are, by and large, also non-producing affiliates.
      That's if you're lucky - because they are also the ones who regularly use online digital products for a test purchase with a stolen credit card, or sell 5 copies to their friends (who refund as soon as the affiliate has collected his commissions and/or withdrawn all his funds from Paypal).

      There are a lot of people in this industry who want it to be a simple matter of post/spam a link, and get paid. They don't want a relationship with the vendor. They simply don't have the time, because 1) they're only going to send out one email (probably with an unaltered copy of the canned text available from the affiliate tools page), and 2) because they are already trying to figure out what they are going to promote in tomorrow's mail.

      As a vendor, you don't need (or even want) those affiliates. If they don't want a relationship with you, can you imagine what the relationship with their list is like?

      As Mike said, long-term they will cost you in many different ways.

      Annoying? They are effectively applying for a very lucrative sales position, for crying out loud.



      Maybe the HUGE selection of available products (and their willingness to promote any/all of them that don't require any approval process) is part of the reason that they mail every day for a different product - each one being the best thing since sliced bread, accompanied by their highest recommendation.

      There are also a lot of affiliates with a lot of sales to their name, that will gladly (even appreciate the opportunity to) interact with the vendor in order to get preferential treatment (i.e. instant commissions, a special discount coupon, etc.). I'll take those, thank you.

      Just as they have choices, so do the vendors.
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  • I also tend to use the number of past sales as a gauge whether to allow
    instant or delayed payment, but price of the product is also an important
    factor. so my cheaper products I would "risk" giving instant payment
    than the more expensive ones.

    -Ray Edwards
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  • Banned
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    • Thanks Big Mike,

      It's a difficult one as you don't want to leave money on the table, I guess my original approach was the right one. It just seems a shame to lose a fair number of large affiliates because of it, even if they don't have the decency to communicate.

      Though I have had credit card fraud with a previous business and if that happened again i'd be kicking myself. Having said that as the product is only created once it would depend on the number of chargebacks to additional sales, the risk maybe worth it. unless your paypal account is frozen of course, but as long as you ban any affiliate and pay the chargebacks then you should be ok...it's a gamble with equal risk and reward. Smart choice is the safe one.
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  • I agree with BIG Mike..... Delayed payments... unless you know them personally.

    The biggest problem with "unknown affiliates" is the financial risk the product seller must take... because of the payment process....

    The entire "sale" goes into the product seller's Paypal..... Then, the affiliate is paid out of that amount.... Hence, if there is a "charge back" the seller loses the entire "sale"..... while the affiliate keeps "his share." Of course, JVZoo and Warrior+ attempt to mitigate this... But, in the end, the product seller is "financially on the hook."

    Someday, there will be a payment solution that has a "real split" at the point of sale... Where the entire "sale" is split and then deposited to PayPal... Then, "charge backs" would not be a big deal.... and affiliate fraud would not be a profitable business.
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  • And I would only add as time progresses for you as a product creator you will know who to invite as an affiliate.

    JVZoo is a platform for selling, it offers a built in affiliate means to entice you to their platform ... doesn't mean you need affiliates or the ones on their platform. Rather think partners from the get go and seek out the partners you desire to work with...
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  • I have a strict policy for my JVZoo products, simply because I have been hooked in that scam where you approve an affiliate for instant payments, they buy a bunch of your products through their own affiliate links with stolen credit card numbers, you pay them instantly, and then in a couple of weeks you start getting charge backs for every single sale they made.

    I got stung by that one once, and that's all it took for me to immediately change my affiliate approval policy to no instant commissions unless they have at least 250 sales and can show me at least a Facebook profile, Twitter profile, and a link to their main website or WF profile. I require some affiliates to tell me who they have promoted for in the past, and if I am familiar with the vendor, I may go as far as to talk to them and ask them if the affiliate is on the level.

    As far as promoting, I have more than 4000 affiliate sales on JVZoo, so I will only promote products which pay me instant commissions. Isn't that a double standard you ask? Well, yes, but not really, and here's why... Whenever I am requested by the vendor to explain how I am going to promote their products, I always respond in the chat box with my method of promotion, Facebook and WF profile, blog link, Twitter account, etc.

    This way the vendor can actually see I am who I say I am and be comfortable with me. And with 4000+ sales, it's very rare that a vendor will not auto approve me for instant payments. If they do happen to set me at delayed, I simply get in touch with them and let them know who I am, and usually they will switch me to instant right away. Also, there are many vendors who already know me by now and have me set to "auto-approve" for all of their launches.

    If you are a new JVZoo vendor, I would advise you very strongly to NEVER approve any affiliate for instant commissions unless they have at least 250 sales, and if you are still not sure you can ask them what other vendors they have promoted for, and maybe get in touch with that vendor and ask them if they have had any problems with the affiliates.

    All I know is that stolen credit card scam is one that is still widely used, and getting a bunch of charge backs is NOT fun, since not only do you have to reimburse the real credit card owner for the price of your product, you will also have to pay a $20 fee for EACH charge back! When it happened to me, it cost me almost $400 in the course of around 5 days to get out from under the charge backs.

    I had to learn my lesson the hard way but you don't. Never be afraid to set a minimum sales amount and vet your potential affiliates as much as you can.

    And as far as affiliates that have thousands of sales (the affiliates you WANT to promote your products), most of them won't promote unless they receive instant commissions. The main reason I will only promote instant commissions is because I have been burned by a few vendors and never paid my commissions, so I will not promote any products for delayed commissions anymore. I can't speak for any other affiliates, but I am sure they have their reasons.
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  • I think a lot of people cannot distinguish the difference between a "JV Partner" and an "Affiliate".

    A JV Partner is someone who is open in building a long term relationship and partnership. These are the people who will bring the most sales on your sales funnels / product launch.

    On the other hand an Affiliate is simply someone who is there to promote your product. There's nothing wrong being an affiliate and there are a lot of people crushing it just by promoting and staying low. They will mail for you once or twice and that's it.

    So as a product owner, your job is to reach out to them and try to build a long term partnership. Some big names might promote and bring in hundreds/thousands of sale for you but will not respond to your inquiries/ efforts simply because there are hundreds of people doing the same thing.

    That's how it works and there's nothing we can do about it, sometimes big affiliates becomes cocky and only there to make a "Quick bucks".

    Having that said, if you're on your initial launch / launch week it is best that you only pick the right people for your launch and just approve the rest after.
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    • You're probably right...

      Perhaps you should look it up:
      Joint venture - Wikipedia, the free encyclopedia

      I don't think there is any question about the fact that affiliates are used to promote products. That doesn't mean that vendors should necessarily respect their desires to remain anonymous.

      It is a business relationship, with money changing hands. The vendor and affiliate have a business relationship, and (especially when instant commissions are in play) the vendor has every right to demand accountability.

      Shoddy promotional practices (i.e. spamming, product misrepresentation, etc.) have always been valid reasons for affiliate dismissal. Affiliate approval processes are not new. The potential abuse of instant commissions programs have created even greater reasons to vet potential affiliates prior to approval.
  • It's all dependent on the circumstances. Do your research on the person, methods and their past history and you should be fine.

    I'm not familiar with Jvzoo, so I don't know exactly how they operate, but I'm connect to a lot of other large networks. I'm not promoting for a network that doesn't offer at least weekly/twice weekly payments. Most networks will make an exception if you do a certain amount of volume. They understand, when using paid traffic, getting paid sooner means more business for them. I've always been completely open with communication, and anyone that is not, I'd stay away from.

    A few months ago I flew down to Florida and had lunch with the people from ClickBooth (Not clickbank). Afterwards they approved my Monday/Thursday payment option.
  • Awesome comments guys thanks for taking the time
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    • I used to let those that had higher sales in JVZoo have instant payments and it wasn't a problem. But just recently one of my best affiliates had a couple of refunds and when I went to refund the product they didn't have enough money in their PayPal account to do the refund so I had to eat the cost (not worth it to message them).

      I ended up switching them and some others over to delayed payments. It's not that big of a deal, but it was very, very annoying to me.

      I say 99% should be delayed payments just like every other affiliate program out there.
  • It's all good if you want to roll with delayed payments.

    But some affiliates will NOT promote for you if you put them on delayed payments lol.

    I've had a vendor or two "forget" to pay me. Won't happen again, because I won't promote unless I get paid instantly. (On the Zoo at least).

    (Not trying to argue. It seems you guys take offense to just about anything these days haha).



    Later

    PS:

    As a vendor... I almost NEVER give ANYONE instant payments, but I'm aware that this prevents people from promoting.

    Oh well.
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  • For newbie affiliates get ready to accept delayed payments until you prove yourself. It's not all about the number of sales but also the quality of traffic you send over all. If your traffic converts well and your refund rate is acceptable, you may be surprised how fast some vendors will switch you to instant.
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