Affiliate Payments: What Are They & What Are the Types of Payout Programs?
The four main types of affiliate payments are: Pay-Per-Click, where an affiliate is paid based on how many readers click on their affiliate link, Pay-Per-Action where an affiliate is paid per new lead they bring in or when they secure a sale, Pay-Per-Impression where a merchant pays for clicks on their website ads, or Two-Tier Affiliate Programs where the affiliate marketer controls an underlying affiliate network and receives commissions for both its referrals and those from its network.
Some people use affiliate payments as a way to profit from payouts. However, it’s really a tool that can help business growth. Affiliate marketing influencers can write content and then link it to your products, sending their readers directly to your webpage. The increased traffic can mean new customers and a larger profit margin.
Because affiliate programs can be successful ways to gain and track customers, many merchants use them. WordPress offers several plug-ins for managing affiliate marketing programs, including link tracking, to increase your conversion rates.
Best Affiliate Payment Methods and Solutions
- Secure self-service affiliate marketer partner and influencer onboarding
- Verified identity, contact information, and tax information for fraud prevention
- Choice of preferred payment method and currency for payouts
- Fast approvals and global payments
- Accelerated payments option
- 24/7 payment status
- Efficient automated global mass payment solution
- Artificial intelligence (AI)
- Automatic payment reconciliation.
How Payments for Affiliate Programs Work
Businesses pay affiliate commissions to bloggers and social media influencers that refer readers to their website through a link, increasing traffic. Some payouts are pay-per-click and others are pay-per-action, requiring lead information from the affiliate marketing referrer or sales. Payment methods and commission structures vary.
Types of Affiliate Payments
Businesses offer several types of affiliate programs:
Pay-Per-Click
Only bloggers or others who have high-traffic websites should use Pay-Per-Click. It requires their reader to click on links to bring him to your page, and every time this occurs, the writer receives a few cents. No sales have to be made; you are simply paying for the traffic that hopefully leads to new customers. As a company, you can refuse to pay the writer if you believe they are clicking the link themselves or through automated techniques that don’t offer new customers.
Pay-Per-Action
More money can be made by those willing to partake in pay-per-action. There are a few methods you can use to do this. The two most popular are through leads and sales. Another pay-per-action type is pay-per-call for resulting appointments for businesses like real estate sales and home improvement contractors.
Leads require the writer to gather information from their readers so that you can contact them about your products.
Sales use tactics similar to pay-per-click; however, the customer is tracked while on your site. If a purchase is made, your affiliate partner receives higher compensation. If residuals are included in the affiliate program, then the referrer also receives commissions on future sales from this new customer referral.
Pay-Per-Impression or Pay-Per-View
Businesses pay for clicks on their website ads.
Two-Tier Affiliate Programs
The affiliate marketer controls an underlying affiliate network and receives commissions for both its referrals and those from its network. This type of affiliate program allows multi-level marketing.
Businesses may use a combination of affiliate program types. For example, Amazon uses both pay-per-click and pay-per-action for leads and sales in its Amazon Associates affiliate marketing program. Amazon also has an Amazon Influencer program.
Making Affiliate Program Payouts
Only one affiliate marketer receives payment for a customer action related to the most recent referral. Businesses generally make affiliate payouts monthly.
Affiliate program providers set time limits (cookie life) for owing affiliate payments. If a referral doesn’t purchase by that time limit, then no affiliate commission is earned. An affiliate payment isn’t made immediately to avoid payouts on customer returns.
Affiliate commission payments can be creatively structured. Businesses can increase commission rates or pay bonuses to affiliate marketers when pre-set goal levels are achieved.
Payment methods include PayPal, prepaid debit cards, gift cards, checks, or direct deposit electronic ACH bank transfer payments to an affiliate’s bank account.
Affiliate payments are rather low and can be annoying to deal with each month. Instead, try mass payment options that can help take care of these payments for you. It allows you to complete easy marketing, without the stress of constant small payments.
How Digital Businesses Eliminate Payment Challenges
You may also be interested in:
Building an Affiliate Program for Your E-commerce Business
What Are Affiliates … and How Do You Pay Them?
Affiliate Payments – Why They Matter
Choosing the Right Payment Method for Each Affiliate
LinkTrust Affiliate Payments Integration
Common Fraud Techniques Used in Affiliate and Advertisement
Best Ways to Make Commission Payments to Affiliates and Influencers
Affiliates Programs & App Monetization
