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How to handle the payout of profit in a JV?

by bwh1
3 replies
Let's assume that you have a 50/50 JV and your product is listed at Clickbank.

As affiliate you will get the check from CB, but how this works if there are 2 owners of a product with a 50/50 split?

Or is there a affiliate network which will split the profits for us?

How would you deal with this?

Setting up a JV agreement would as well be necessary or do you guys just setup something over emails and that's it?

I'm a simple guy and for me a verbal agreement is worth the same as a piece of paper, but online is a bit different and I lost already money at a certain kind of JV where all looked good at first hand.

Any help appreciated.

G.
#handle #payout #profit
  • Profile picture of the author Russell Hall
    Hey G,

    yeah its amazing actually how little support there is for this kind of thing. I've just gone through the process of creating an online product with a JV partner and we'll be needing to do this exact thing,... that is,- give affiliates their 50%+ commission and then share the remainder 50/50 between me and my partner.

    I'm not sure if CB have anything like this kind of option but I doubt that they do.
    There are independent affiliate software programs that will set this up (such as Delavo I understand) but these can be expensive options unless you're expecting to do a lot of business volume to justify the outlay.

    There is a good affiliate portal called Digiresults which I contacted this week to ask this very question about partnership splits and they said they are working on including it in a future upgrade but said no indication of timing of this was currently available (my interpretation of that is that it could happen next month but we could also be waiting for 6 months..who knows?).

    There is a way that you can set this up if you use PayPal and have a merchant account. They have a facility known as "chained payments" in which up to 6 JV partners (or suppliers or whatever) can be paid out a varying % of the original sale automatically at the point of sale.
    However,.. this requires a specific script being written to work with the Paypal API and your own requirements.

    For me I think this is the best option even though it will cost a few bucks to get the API script written and installed,... once its done it should be plain sailing.

    Cheers,
    Russell
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    • Profile picture of the author bwh1
      Originally Posted by Russell Hall View Post

      Hey G,

      yeah its amazing actually how little support there is for this kind of thing. I've just gone through the process of creating an online product with a JV partner and we'll be needing to do this exact thing,... that is,- give affiliates their 50%+ commission and then share the remainder 50/50 between me and my partner.

      I'm not sure if CB have anything like this kind of option but I doubt that they do.
      There are independent affiliate software programs that will set this up (such as Delavo I understand) but these can be expensive options unless you're expecting to do a lot of business volume to justify the outlay.

      There is a good affiliate portal called Digiresults which I contacted this week to ask this very question about partnership splits and they said they are working on including it in a future upgrade but said no indication of timing of this was currently available (my interpretation of that is that it could happen next month but we could also be waiting for 6 months..who knows?).

      There is a way that you can set this up if you use PayPal and have a merchant account. They have a facility known as "chained payments" in which up to 6 JV partners (or suppliers or whatever) can be paid out a varying % of the original sale automatically at the point of sale.
      However,.. this requires a specific script being written to work with the Paypal API and your own requirements.

      For me I think this is the best option even though it will cost a few bucks to get the API script written and installed,... once its done it should be plain sailing.

      Cheers,
      Russell
      Hey Russell, thanks for your feedback, this helped, even if there is still no simple solution available.

      look like this would be a Niche for some of the big dogs. Open a JV portal where you actually can setup and manage a JV, including legal stuff and payment settings.

      Till then I have to see how to get around this, maybe I'll ask Digiresults as well, the more people ask, the faster it will be an issue to consider.

      G.
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  • Profile picture of the author JustinDupre
    I agree.. They need to come up with a better and easier payments setting solution for this type of situation. It sucks we have to go through so much hassle dealing with a 50/50 split and paying for written API script, you should definitely keep asking them about this problem.
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