Why pay cheque release very long?

I just wondering why it needs almost one month before google release the cheque of their publishers.

Does premium publishers get paid first?

 

Two things I could think of 1. They need to audit your earnings. or 2. They have millions of customers so it might take a while to process them all

 

Almost all the big advertising networks pay net 30... some even pay net 45 or net 60

 

Net 30 is pretty standard, dude.

 

Not that I mind... but TRY TO IMAGINE the $$$ INTEREST $$$ (or other INVESTMENT ROIs) on all those payouts WHEN they get to keep the money for another MONTH.

It' ALL about the money! And who can blame them?

 

You have a point.... They have the best programmers in the world and can easily build a system to automatically audit accounts and they have all the capabilities to process things fast because they have budget to do so.

 

It's all about the "SPREAD."

"Make" money at X% and "Pay" it out at X% minus some percentage.

Makes the world go around. In reality, that's all a bank does. They don't have products
to sell, they just INVEST OUR MONEY AT 10-20% and ONLY GIVE US 1-2% in return... Man, I wish I was a bank!

 

Yea it makes (ad)sense when you think about the interest they could make on all that cashola

 

They charge the AdWords Advertisors monthly. So for example, a click on the first of the month won't be paid until the end of the month!!

 

As told to me by a retired banker "Bank= a license to steal."

 

As others have said net 30 in the business world is pretty good. I wish all my clients paid that quickly.

 

A more pertinent question is what is wrong with your business model when a fairly standard NET 30 days payment cycle is causing you problems? (This coming from someone who sells software on the first day of the month knowing it will be the best part of 12 weeks before I see that money in my bank account).

 

Its called float... In business you want to avoid paying people as long as you possibly can without incurring any penalties and causing any strained relationships, all the while collecting your own accounts as quickly as possible.

The net effect is more money for you for a longer period of time, which is the life blood of every business.

It certainly doesn't take Google 30 days plus to process their accounts and pay them out. They could do it significantly faster if they so desired, but where is their motivation? The faster they release those payments the less time they make interest on the money. With the amount of money google processes every month, even a little bit of interest is going to be a very sizable amount of money.