minimum payments by affiliate networks

[careless]

What do the networks do with all of the extra money that comes from people never reaching the minimum payment threshold?

I believe that Networks should have a "client Account" and it is illegal to touch affiliates money.

So is this spare money just rattling around in the coffers of all these networks ....I mean there must be thousands.

I''d love to know what happens to it. I know I've pulled out on a couple of campaigns and given up on the money earned.

Surely it would be good PR to just have a "clear out" every now and again and pay all these spare amounts?

OR...now heres a suggestion. Everyone choose a network with no minimum payout - they do exist.

[Mogga]

google says it pays once a year ready or not...

so I assume anyone in the Uk who's not done well with have a fairly useless $ cheque from them.

[morleymouse]

dont all the majot UK networks have min payout levels?

There only something like £30 anyway, remember when I was starting... hoping id make payment each month

[careless]

Yes I think all of the major ones do. in Finance, Silvertap, Smartquotes (I think), TOTC and the private insurance schemes like Quoteline and Direct Choice do not.

But....really my question is....where are all the missing thousands???

Does anyone know what they do with this money?

[drivetowin]

It's probably just absorbed into their profit - and if it is clearly stated in their terms and conditions that no monies are payable until you have earned xxxx there is nothing illegal in them doing so.

Likewise if they have an 'inactivity' clause they are entitled to retain your money.

The reason most networks have a threshold is because of the admin costs of issuing a payment (cost of printing a cheque, bank charges, postage charges etc)

[pistol101]

It's legally the affiliates, so it's sat there until the affiliate reaches the payment threshold or they close their account.

[careless]

Right, so do we relinquish our rights to own the money after we close the account?

But we never physically close an affiliate account do we?

I had heard that British Gas have a real problem with peoples money sitting in their client account becuase legally they cant touch it....so its dead money.

[Supercod]

If you getting worked up over less then £25 maybe your in the wrong game. However I say stick with it as you soon be making the minimum level in no time.

As it stands all it takes is for a network to add in a term that states if you don't make any money in your account for say 6 months in a row, we will charge you £10 a month maintenance fee until your account no longer has any money in it, then it will be closed. Keep in mind it costs the network a lot of money both in system, software and support to deal with affiliates, they make that back over and over with active affiliates who make money, but for everyone that they never see a penny from this will cost them money.

I heard people say stuff like, but not fair for the networks to keep the money. That maybe the case, however why are you so worried it's really nothing to do with you other than the amount your owed and I bet if you made enough of a song and dance you get your sub £25 paid to you.

End of the day minimal levels are set to stop time wasters and to stop time being wasted writing or paying out such a tiny amount per person. The only person who will be really interested in all the small amounts is the TAX man, he be wanting his share if the network do take it back.

[qwerky]

I've recently removed any minimum payment restrictions from my affiliate program, from my point of view i wanted to ensure that all my affiliates are paid at month end, as i know how frustating it can be especially when your just short of a minimum payout threshold.

The worst i have come accross was a job site on Linkshare(i think)? where the minimum payout was £500 and you only got 30p or something per lead, i'd promted them for a year and was only upto £100+ commission and then they closed the program!!

[careless]

gemerally, the whole process is automated from the click tacking to the printing of the cheque and for this the networks take an extra 30% of your commision. So if you sell a £30 item, the network has earned £9 - I think that covers the cost of signing the cheque which has alredy been printed out by the soft ware.

And that is being kind, some networks take double. Now if you earned £20 I thnk the £20 earned by the affiliate xould cover all admin.

I admit the tekky costs of mintainning such a system are high , but Capital one has 1000 affiliates, how may of those are never reaching the payment threshold? As we know only about 10% of affiliates actually perform. So CJ do very nicely out of the part timers.

[Rich]

Originally posted by careless So if you sell a £30 item, the network has earned £9 - I think that covers the cost of signing the cheque which has alredy been printed out by the soft ware.

If you earn £30 commission the network gets £9 - so that £9 has to cover all the support costs of you, your share of the costs of getting and managing merchants, running costs and payment costs. - sounds kind of ok.

Originally posted by careless So CJ do very nicely out of the part timers.

Not really, if the small affiliate has only earnt £15 then the network has only got £5 ish to handle looking after them. They do well out of the big affiliates. If a big affiliate makes £15,000/mth, the network gets £5,000 ish to support them!

[Marc Gear]

All approved unpaid commissions on Awin remain in the affiliates account indefinatly until the affiliate either reaches thier threshold or requests the closure of thier account. This may change at some stage but at the moment -thats the way it is.

30% override may sound like a lot, but networks have wages to pay, software and hardware to upkeep, premises to rent/upkeep and all other supplier costs. The override isn't 'covering the cost of signing a cheque' it goes into running the network that you use to generate revenue.

Many industries operate on much much higher profit margins, and its not you paying the override, it's the merchants.

By agreeing to the terms and conditions of a network when you begin to use them, you accept that you will not be paid anything until you meet the threshold. I dont think any of the networks operating the UK have unreasonable thresholds.