Advice Needed - Running an affiliate program

Discussion in 'Affiliate Programs' started by jonno_81, May 6, 2011.

  1. #1
    Hello,

    I have a web hosting website and I already run an affiliate program there, but I am considering reorganising the affiliate payout amounts.

    At current exchange rates, I am thinking of the following:

    Note: Cost = the monthly cost to the client for the hosting
    Commission = the once off affiliate commission for that package


    Cost Commission
    $2.23 $8.92
    $4.39 $17.56
    $11.17 $44.68
    $22.35 $89.4
    $37.25 $149


    In other words, the affiliate commissions are 4 times the monthly payments. For this reason (and because we all know there are many client's who don't continue payments after a couple of months) there will be a hold off period of 4 months.

    So, 4 months after making the sale the affiliate will get payment. Where a client pays for the hosting for a year in advance the commission will be paid sooner. If a client stops paying after 2 months (for instance), the affiliate will earn the commissions for those months (minus the cost of the domain name).

    Any suggestions on this?

    Thanks,

    John
     
    jonno_81, May 6, 2011 IP
  2. BCRed

    BCRed Active Member

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    #2
    4 month hold back on payment is really long. I think you'll find that to be a huge sticking point with a lot of affiliates. If you want to structure things this way, you may be better off paying affiliates on a monthly recurring %, rather than how you have it.
     
    BCRed, May 6, 2011 IP
  3. Greg UK

    Greg UK Peon

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    #3
    I agree, as an affiliate I would not want to wait 4 months!
     
    Greg UK, Jun 2, 2011 IP