Affiliate Marketing - What Is Payment Threshold?

Affiliate Marketing - What Is Payment Threshold?
By Laura Wolf

Before signing up for an affiliate network, the marketer needs to be aware of the payment terms and the different conditions set by the company. That said; it is not only the payment threshold that matters; the method and schedule of the payouts is just as important. When you are doing affiliate marketing as a full time job, you need to ensure the liquidity of your business in order to be able to pay the bills on time. Nobody wants to wait months to the payout date, therefore, before you choose an affiliate marketing network you need to check this. A payment threshold is an amount set for minimum payout.

Minimum Payment Threshold of Affiliate Marketing Companies

Most companies set a threshold of 50 dollars. This is usual when you are signing up, however, if you are able to reach this in a day or a week, you might be able to ask for better conditions or payouts more often. Until then, you just need to work on reaching the goal. Some affiliate networks and CPA companies allow you to set your own threshold. The more confident you are that you can successfully promote campaigns the higher you set it up. This is extremely important if the network charges you for withdrawal or you pay a transaction fee to your payment provider/bank.

Set Your Payment Threshold

You will need to consider setting the payment threshold that is easy to reach. If you are new to affiliate marketing, choose the lowest possible amount. However, if you are already successful at a campaign, you can increase this and withdraw a larger amount every month, making it easier to do your accounts. It is worth changing the payment settings every couple of months to make sure that they are still applicable to your business.

Payout Dates

Setting a payment threshold does not mean that you will receive the same amount every month. Check how many times a month the affiliate network sends commissions and whether they hold the money for 30 or 60 days. Most CPA companies apply a Net 30 or Net 15 payment frequency, depending on how you meet certain requirements. This means after the end of the month you will need to wait for the money to be released, due to different checks and refund issues.

Give the Campaigns a Push Before the Network Closes the Month

If you know the closing date for the accounting in the affiliate network, you will know when you need to meet the payment threshold by. You need to keep checking your account on a regular basis, and if you have not met the minimum payout level by the 3rd week of the month, you have to give your campaigns a big push if you would like to receive your commissions.

Laura F Wolf is an experienced internet marketer with a passion for teaching. She loves sharing her experiences and affiliate marketing tactics

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