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.
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 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.