May 2, 2014

The Myth Behind Affiliate Network Payment Terms…

How many times have you felt that an affiliate network could pay you quicker? Like C'MON, you provided a specific service... You provided traffic to an advertiser. Converted that traffic into a new lead or sale. Now its time to GET PAID! That is Affiliate Marketing right there….

TRAFFIC converted to LEADS (potential customers) and/or SALES (customers).
It’s the advertisers job to do the rest, right?

The advertisers who know what they are doing have a integrated backend that supports large volumes of leads/sales, and processes in place to do most the leg work automatically.

Its called OPERATIONS AKA setting your business up for success.

You can automate your follow up emails with services such as GetResponse, AWeber, Constant Contact, Ontraport, InfusionSoft, among many other quality email service providers.
Advertisers have the same ability.
You can automate your customer service with call centres.
Advertisers have the same ability.
RESULT = HAPPY CUSTOMERS! …without you being there….
The two above processes are basic automation strategies.
The automation list is unlimited….
Some advertisers outsource everything – including the traffic (affiliates/affiliate networks).
They collect the money, pay the team, and live life on the beach.
With automation, and logistics, its clear advertisers can pay quicker, right?


You’re RIGHT!!
However… do you know how payments work behind the scenes?

You may have heard the terms – Net 30, Net 15, Net 7, Bi-Monthly, and Weekly payments.

If these terms appear foreign, you may be brand new to Affiliate Marketing.
Or you may be working with an affiliate network for the first time.
Either way, the purpose of this next section is to educate you on exactly how payment terms work.
No more wondering if an affiliate network can pay you quicker.
You’re going to be educated, and will possess a full understanding of how things work.
If a network says otherwise, have them refer to this article.
What you’re about to learn is the “SECRET” process of how payment terms work.
For whatever reason, this topic has yet to be explained to affiliates.
People who read this next section are those who want to know how things actually work between affiliates, affiliate networks, and advertisers. No fluff. No BS.
Many of you are looking for a group of forward thinkers to follow who demand more transparency in Affiliate Marketing, and strive for win/win outcomes across the board.
You may feel under-appreciated by other affiliate networks. Like you’re doing all the work, and affiliate networks are just providing you with offers.
Now you have some extra ammo (knowledge) when speaking with Affiliate Networks.


Below is a review of the current payment terms offered by Affiliate Networks,
Monthly Net XX
Bi-Monthly Net XX
Weekly Net XX
The first part – Monthly, Bi-Monthly, Weekly – determines the frequency of how often the affiliate network can invoice the advertiser, or the affiliate can invoice the affiliate network.
Monthly = 30 Days

Bi-Monthly = 15 Days

Weekly = 7 Days

The “Net XX” determines the MAXIMUM amount of time the advertiser has to pay the affiliate network, and/or affiliate. Generally, interest is added to outstanding balances.
For example, Monthly Net 30 – the affiliate network can technically invoice the advertiser every 30 days, and the advertiser has a maximum of 30 days to pay the balance.
Lets say, $1,000 is generated in April. If the payment terms are Monthly Net 30, the payment is due at a maximum date of May 30th – which is 30 days after the end of April.
If the payment terms are Bi-Monthly Net 7, the payment is made 7 days after the 15th and 30th of the month. All business from April 1st – April 15th is paid on April 22nd.
If the payment terms are Weekly Net 5, the payment is made 5 days after the end of each week – meaning all business from Sunday to Sunday is due each Friday.
If you have any further questions on payment terms, drop them in the comments.

Mickey Mouse Questions

Time to put the nail in the coffin for this post.
Late payments are unacceptable; however, its become a trend for some affiliate networks to pay late.
Some say its due to greed, and others say its a lack of understanding of how a business works.
What do you think? This post is an opportunity for you to speak your opinion.
If you’re getting paid on time, you may be getting paid less than the amount owed.
Do you know why many affiliate networks are paying late?
How about …
Why are affiliate networks paying less than the original amount owed?
4 words….
Advertisers make the world go round for affiliates, and affiliate networks.
This post would lack accountability if it didn’t also point out the obvious…
When an advertiser screams wolf, the affiliate network often accepts the advertisers word for it, and never investigates further. Pure lazy, and have no idea what they’re doing.
Advertisers in fact have been screaming wolf more frequently on quality data.
A small group of affiliates have been leveraging ‘known’ affiliate networks to send misleading advertisements – resulting in million of dollars of consumers being scammed.
Some of these networks knowingly accepted the traffic to GET RICH.
You know who you are….
Many advertisers lost MILLIONS of dollars due to a small group of lazy ‘innovators.’
You could almost say advertisers have taken on the personality of the ‘known’ affiliate networks, and affiliates, and are playing them at their own game.
Its the responsibility of affiliate & affiliate networks to gain trust from advertisers.


Now to end this post with a couple questions.
Is it the affiliate network taking their sweet time to pay you? 
Is the advertiser taking their sweet time paying the affiliate network? and therefore YOU.
How do you truly know?
Stay tuned for a follow-up post giving you a full review on the logistics, and metrics required to receive payment for lead generation, trial, and sale based campaigns.
You GOT the POWER!

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