How to Manage Affiliate Payouts and Commissions
Understanding Affiliate Payouts and Commissions
Affiliate payouts are the payments distributed to your affiliates as a reward for sales they generate. This guide explains how commissions are tracked and how to manage the payout process effectively within your CRM's affiliate management system.
Key Points to Know
Commission Tracking
Commissions are automatically tracked for sales processed through Stripe. The system does not automatically account for refunds on one-time product purchases or subscription cancellations.
Subscription Cancellations
To manage subscription cancellations, you can configure a payment delay of 15, 30, or 60 days after the sale. This grace period allows time to process cancellations before the affiliate is paid. If a subscription is canceled, the associated contact is moved to a 'churned' status but can be reactivated later.
Commission Types
Commissions can be either one-time (for single purchases) or recurring (for subscription products), based on the product sold via Stripe.
Discounts and Coupons
When a customer uses a discount or coupon at checkout, the affiliate commission is calculated based on the final, discounted sale amount.
Configuring Payout Terms
Payout terms allow you to set a delay between when a commission is earned and when the affiliate is paid. This is useful for businesses that have a refund policy window. For example, if you offer 30-day refunds, you can set a NET-30 term to ensure commissions are only paid after that period has passed.
Available payout terms include:
- NET-7 (7 days after month end)
- NET-15 (15 days after month end)
- NET-30 (30 days after month end)
- NET-45 (45 days after month end)
- NET-60 (60 days after month end)
- NET-90 (90 days after month end)
You can configure these terms in two places:
- Within a specific campaign, under its Additional Settings.
- In the global settings for the affiliate system.
Affiliates can see the applicable payout term within their affiliate portal.
Navigating the Payouts Tab
The Payouts screen is organized into four sub-tabs that represent different stages of the payout process.
Pending
This tab displays all payouts that are pending approval, organized by campaign and by month. To review a payout, click the three-dot menu next to an entry to see a detailed breakdown. From here, you can approve the payout or select 'Deny Payout' to move it to the Denied Payouts tab.
Approved for Payout
After a payout is approved in the Pending tab, it moves here. You can export a list of affiliates and the amounts owed, process the payments through your payment gateway, and then mark the payouts as 'Paid'. If necessary, you can move a payout back to the Pending status.
Paid
This tab lists all affiliates who have received their payments, along with the payment date. Payouts in this tab are final and cannot be modified.
Denied Payouts
Any payout that is denied from either the Pending or Approved for Payout tab will appear here.
How Payouts Are Generated
Payouts are automatically generated and appear in the Pending tab on the first day of each month. Each entry will show a 'Due' date, which is calculated based on the payout terms set for the campaign. This system provides flexibility by allowing you to approve and process payments after a delay, helping to manage potential refunds.
How Commissions Work
Commissions are the earnings that affiliates accumulate from sales made through their unique referral links. The commission rate is determined by the specific campaign the affiliate is promoting. A clear understanding of how commissions lead to payouts is essential for transparent and effective affiliate program management.