How Do Affiliates Get Paid?
When I first started in affiliate marketing, the payment process confused me. There were all these terms like “net-30” and “payment threshold” that nobody explained clearly. After years of working with dozens of affiliate programs, I’ve learned exactly how the money gets from companies to affiliates. This guide breaks down everything about affiliate payments in simple terms that I wish someone had told me when I was starting out.
The Affiliate Payment Process
Affiliate marketing is pretty straightforward: you promote products, people buy through your links, and you get paid. But the actual payment process has several steps that happen behind the scenes.
How Companies Track Your Commissions
Before any money changes hands, companies need to know which sales came from your promotion efforts. Here’s how they keep track:
Payment Methods For Affiliate Marketers
There are several ways to receive your affiliate earnings. Each has its own pros and cons:
| Payment Method | Processing Time | Typical Fees | Minimum Threshold | Best For | Common Programs Using This Method |
|---|---|---|---|---|---|
| PayPal | 1-2 days | 2-5% | $10-$100 | International affiliates | Amazon Associates, ClickBank, ShareASale |
| Direct Bank Deposit | 1-5 business days | Usually free | $25-$100 | US-based affiliates | CJ Affiliate, Amazon Associates, Awin |
| Paper Check | 5-14 days | Sometimes $1-2 | $50-$100 | Those without digital banking | ShareASale, Commission Junction |
| Wire Transfer | 1-3 business days | $15-40 | $100-$500 | Large international payments | High-volume affiliate programs |
| Cryptocurrency | Minutes to hours | Varies | Often lower ($10-50) | Tech-savvy affiliates | Newer affiliate networks, blockchain companies |
Payment Cycles Explained
Most affiliate programs don’t pay you immediately after a sale happens. Instead, they operate on payment cycles:
Understanding Affiliate Payment Terms
Net Payment Terms
You’ll often see terms like “Net-30” or “Net-60” in affiliate agreements. These tell you how many days after the end of the earning period you’ll get paid:
- Net-15: Payment 15 days after month end
- Net-30: Payment 30 days after month end (most common)
- Net-60: Payment 60 days after month end
- Net-90: Payment 90 days after month end (mostly for high-ticket items)
Payment Thresholds
Almost every affiliate program has a minimum amount you need to earn before they’ll send payment. This is called a payment threshold:
Getting Your First Affiliate Payment
Meeting Payment Thresholds
If a program has a $50 threshold and you earn $30 this month, that money stays in your account until you earn $20 more. Some tips to reach thresholds faster:
- Focus on fewer programs initially
- Choose programs with lower thresholds when starting
- Promote higher-commission products
- Ask about threshold exceptions (some programs will lower them for active affiliates)
Setting Up Your Payment Information
Before you can get paid, you’ll need to provide:
- Tax information (usually W-9 for US affiliates, W-8BEN for international)
- Your preferred payment method details
- Sometimes identity verification documents
Payment Issues And How To Solve Them
Tracking Problems
Sometimes sales don’t get tracked properly. This happens when:
- Cookies get blocked by browsers
- Customers clear their cookies before purchasing
- They use a different device to complete the purchase
- Technical glitches in the affiliate system
To protect yourself, keep screenshots of your affiliate dashboard showing clicks and conversion rates. If your numbers suddenly drop, you’ll have evidence to discuss with your affiliate manager.
Dealing With Refunds And Chargebacks
When a customer requests a refund, that commission typically gets deducted from your earnings. This is called a “clawback” and can happen up to:
- 30 days after purchase for digital products
- 60-90 days for physical products
- Sometimes even longer for big-ticket items
Advanced Affiliate Payment Strategies
Negotiating Better Payment Terms
As you become a valuable affiliate partner, you can sometimes negotiate:
- Higher commission rates
- Lower payment thresholds
- Faster payment cycles
- Special bonuses for performance
Managing Multiple Income Streams
Successful affiliates often work with several programs, which means tracking various payment systems. Consider using:
- Spreadsheets to track expected payments
- Calendar reminders for payment dates
- Accounting software for larger operations
FAQ About Affiliate Payments
When do affiliates usually get paid?
Most programs pay monthly, between the 1st and 15th of each month, for sales that were finalized in the previous month or earlier period. Payment timing depends on the program’s Net terms (Net-30, Net-60, etc.).
What’s the highest paying affiliate method?
Recurring commission programs (like software subscriptions or membership sites) often provide the highest long-term income, with some paying 20-40% of the monthly subscription price for the lifetime of the customer.
Do I need a business bank account for affiliate payments?
Not necessarily for starting out, but as your income grows, a separate business account helps with tax organization and professionalism. Some payment methods like ACH deposits may require a business account for larger amounts.
How do taxes work on affiliate income?
In most countries, affiliate income is considered self-employment or business income. In the US, programs that pay you over $600 in a year will send a 1099 form. You’ll need to track all earnings and pay appropriate taxes, but you can also deduct business expenses.
What happens if I don’t reach the payment threshold?
Your earnings will remain in your account until you reach the threshold. Some programs have time limits where unclaimed commissions expire after 6-12 months of inactivity, so always check the terms.
Understanding how affiliates get paid might not be the most exciting part of affiliate marketing, but it’s crucial for planning your business and cash flow. The good news is that once you set up your payment methods correctly, much of the process becomes automatic. Focus on creating valuable content and driving conversions, knowing exactly when and how your commissions will arrive. Start with programs that have lower payment thresholds and faster payment cycles when you’re new, then expand to others as your traffic and conversion rates improve.