Affiliate Payment Options

[AdsertiveJen]

Hi everyone,

I was just discussing affiliate payment options in another thread and I thought I'd pose this question to find out how important it is to affiliates: how many of you would chose to be paid through a Paypal account versus a check, wire, etc. if you had that option? We don't offer that option currently and I would just like to find out if we're missing out on working with some of you because of that, and if so, I'll push to have it added.

 

[Nintendo]

I like PayPal more than checks because it goes right in to your bank account. No need to go to the bank. Saves time. Even better than PayPal is direct deposit. No fee there.

 

[Affiliate Classroom]

Im finding that Paypal is becoming more and more popular. And, now, merchants can use Mass Pay at Paypal and apparently that means that the affiliate does not have to give up that 3+%

Also, the max it costs the merchant is 2% or $1 per payment. So, if you think about it, we pay that much in sending checks anyways.

Whereas now, all we do is type into an excel file, upload it and wa la, payments made instantly.

So, all in all, I am seeing paypal becoming bigger and bigger....

Anik

 

[briyne]

People have to be careful with PayPal. If you have any kind of questionable adult link on any of your websites, PayPal will play judge and jury and annul your PayPal account and freeze your funds for 180 days. It happened to me. PayPal allows NO-KIND of adult material at all on any website that uses their services.

Therfore, if you want, need or have a PayPal account, and you have any kind of adult content (including personal dating sites), don't list your URL in your PayPal account.


Brian

 

[Affiliate Classroom]

Another thing about using Paypal to accept money, you can't have a 2 tier affiliate program!

Anik

 

[Teli]

Another thing about using Paypal to accept money, you can't have a 2 tier affiliate program

I believe that depends on the affiliate software you're using Anik.

On its own, I don't believe PayPal allows multi-tier affiliate programs, but the software I use allows me to have a 2 tier (or actually, as many tiers as I want) affiliate programs and I accept payments through PayPal.

Because the software handles all the affiliate finances, I simply have it print out a text file of all affiliates who need to be paid, then I head over and use PayPal's mass pay function.

So, I believe it ultimately depends on the software you choose for your affiliate program.

On another note - I pay my affiliates through PayPal and I accept payments through PayPal. I may, at a later date, expand the payment options - but so far, have no complaints with the system.

I did have one nightmare a while back with a fraudulent buyer, but that was when PayPal wasn't owned by eBay...

~ Teli

 

[Affiliate Classroom]

Teli,

I have a question about mass pay - if I use that feature, then the affiliate is not paying anything on the money I send right?

So the affiliate gets the whole amount?

I am thinking about switching over completely to paypal payments and believe it or not, I have been paying affiliates the hard way till now

Anik

 

[Teli]

Hi Anik,
I believe Mass Payment is simply a way of getting payment to a large number of people easily, but the usual fees still apply (except on our end, where we need to pay 2% of the transaction or $1, whichever is greater).

Personally, I was very happy when I discovered mass pay, it just makes things much easier on me and I can pay all of my affiliates in less than 5 minutes each month .

If the fees are of great concern, why not send off a quick e-mail to PayPal?

~ Teli

 

[Linda Buquet]

Yep when it comes to paying affiliates, anything that makes it easier is good.

I just got a HAND written affiliate check from a decent sized affiliate program that I know has lots of affiliates. Can you imagine hand writing hundreds of affiliate checks? Crazy. Maybe their printer broke. Can't believe they don't have things set up to auto pay.

 

[Nintendo]

Can you imagine hand writing hundreds of affiliate checks? Crazy.

I can just see some one spending all day writing checks and making a few errors...Check for $13,370.00 when it should be $1,337.00.

 

[deniseoberry]

I'll ring in here since I suggested PayPal as a payment option on the other thread. In terms of time and money, paying with PayPal wins hands down unless your program has the capability of direct deposit to the affiliates bank account. A lot of people forget all the costs that go into writing (or printing) checks and when you add the costs up, it's expensive.

Best regards,

 

[chilimax]

I like the idea, it is a nice time saver and free. Doesn't get any better than that!
All the Best,
Blake

 

[AndrewJ]

Another thing about using Paypal to accept money, you can't have a 2 tier affiliate program!

Anik

Anik's right,

Using Paypal with a 2 tier affiliate program is against the AUP. It has nothing to do with the software you use.

Andrew

 

[Teli]

Hi Andrew,
Thanks for chiming in on this on. It seems you learn something new everyday . Had no idea PayPal actually limited 2 tier affiliate programs.

After reading through the AUP several times over, it seems PayPal is trying to deter MLM and ponzi schemes.

It may be feasible that a legitimate merchant can have a two tier affiliate program, but they may need to go through some red tape with PayPal to prove they aren't running a MLM program first:

In determining whether a website or account violates our Pyramid, Multi Level Marketing, and Get Rich Quick Schemes Policy, PayPal will consider some or all of the following factors:

• Offering commissions to recruit new members
• Requiring new distributors to purchase costly inventory or "start-up kits"
• Members' profits are derived from recruiting new members or from the sales of newly-recruited members ("downline"), rather than their own sales
• Unrealistic or unsupported promises regarding profits/return on investment
• Percentage of the company?s goods sold by non-distributor
• Businesses warned against by the Better Business Bureau, state Attorney General, Federal Trade Commission (FTC), or any state or federal agency
• Flow of money derived from new members predominantly moves "upline"
• Preservation of the business rests on the exponential growth of new members or customers
• Speculative real estate or non-development property

I'm curious to hear other experiences with PayPal and their 2 tier affiliate program - I know there was some ruffling of feathers a while back when it was being enforced.

~ Teli