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Home / The Financial Advisor / How to Set Affiliate Payment Rates

How to Set Affiliate Payment Rates

As your business grows, your affiliate users contribute to the continued expansion of every aspect of your company. Affiliates tirelessly market your company across a range of media, building your customer base and popularizing your name in the marketplace. For this reason, picking the right way to compensate these users for their efforts is vital to maintaining a thriving business.

Percentage Payment Rates

A percentage payment rate is based on the number of sales an affiliate confirms in a set time frame. If affiliates successfully sell or market a product, they get a percentage of the final sale. Business owners should set this percentage to an amount that is fair for the work that affiliates put into selling the product. Businesses that need to make a lot of sales might consider using this method to boost incentive.

Experience-Based Rates

Not all affiliates handle marketing in the same way. While some affiliates might make only a few sales or accomplish a few goals in a week, others might work overtime to surpass your expectations. Business owners who want to reward their most dedicated affiliates can choose a performance-based rate that can increase as the affiliate moves up through the company. This keeps your best affiliates from moving to another company that might offer higher compensation, and it builds a sense of loyalty among the people who work for you. Affiliates are less likely to move to another company, knowing that their payment rate can increase the longer they stay with your company.

Fixed Rates

Fixed rates do not offer more incentive to successfully sell products and will not give affiliates a reason to stay with the company long-term, but fair fixed payment rates are the simplest to use. For companies needing to make mass payments on a payout platform, having a fixed rate can make this process easier. Every affiliate is paid the same amount, making invoices predictable and easy to handle every month. The key to a successful fixed rate system is to set the rate at a competitive price that other companies will have trouble beating.

Once you pick the affiliate payment rate that’s right for your company, invest in a streamlined payout platform that covers mass payments, to ensure your affiliates are always paid on time.

About the Author

Rob Israch

Rob Israch leads global marketing for Tipalti and runs their Europe business, bringing over 20 years of leadership experience to the company. During the 7+ years that Rob has served at the company, Tipalti has experienced 50X+ growth while helping the company receive a valuation of over $8.3 billion and becoming one of the select few companies in America to have made both the Deloitte Fast 500 and Inc 5000 lists for the last four years running.
Prior to Tipalti, Rob served as VP, Global Marketing Programs at NetSuite, the leading provider of cloud-based Enterprise Resource Planning (ERP) software, helping to guide the company through 10X+ revenue growth, from a private company through IPO to cloud ERP market leader. Previously, Rob held a variety of executive roles at Intuit QuickBooks and GE Capital.


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  • What is AP Automation?
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