High payout thresholds are common in many affiliate programs, and for good reason. Although many new affiliate marketers resent the high payouts, there really are reasons for them besides the owner of the company not wanting to pay you. Learn all about affiliate program payout threshold – pros and cons and make your own decision whether you want to sell products for a company that uses this tactic.
There are a number of reasons for a high payout threshold. Making fewer payments results in less paperwork and lower payment processing fees. However, the main reason that affiliate programs require high minimum payment amounts is to protect affiliates from regular customers who sign up just to save money on the product. If the minimum payment is high, these people won’t bother trying to cheat the affiliate out of the sale because they know they will never get their money back.
By making the minimum payment higher than the amount that would be earned as the commission from one sale, the program manager can drastically reduce the number of fraudulent purchases by people who just want to save a few bucks. However, when there is too large a difference between the per sale commission amount and the affiliate payment threshold you run the risk of never making enough sales to receive your payment.
Make sure you take into consideration the number of sales you will need to make if you are signing up for an affiliate program that has a high payout threshold. If the commission is $5 per sale and the payment threshold is $100, you’ll have to sell twenty of them in order to be eligible for a commission. Do you think you can sell that many of the product?
If you want to decrease the chances of never making payout for the affiliate products you are promoting, try choosing an affiliate marketing program that has several different products you can promote. That way, if you only make one or two sales of each product you promote, you will still make enough money to get a check.
When you are signing up for an affiliate program, try to find programs that give clear warnings right on the sign up page that buying the product for yourself through your affiliate link is not allowed. Programs that emphasize the methods they have put into effect to catch violators of this policy are desirable because this will help ensure that you get the commission for the sales you are responsible for.
Learn more about other factors that should be considered when choosing an affiliate program. Stop by Affilla.com’s site where you can search for the best affiliate programs right for you.
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