Affiliate marketing works best when your affiliates are happy—and nothing makes them happier than getting paid on time. Paying commission to affiliates is a crucial step that keeps your program running smoothly. This article explains what affiliate commission payments are, how they work, and everything you need to follow for a seamless payout process.
How to pay commissions to Affiliates?
There are 4 ways to pay commissions to affiliates that are:
1. Loyalty Rewards
Loyalty Rewards allow you to pay affiliate commissions in the form of loyalty points instead of cash. These points can be used by the affiliate on your store to purchase products, redeem offers, or gain additional benefits. It encourages affiliates to shop from your brand and increases customer retention.
2. Store Credit
Store Credit is a payout method where the commission amount is added directly to the affiliate’s store wallet or credit balance. Affiliates can use this credit to buy products from your store without paying real money. This method helps keep financial transactions within your store ecosystem and boosts repeat sales.
3. PayPal
PayPal is a widely used online payment method that allows you to transfer commission payouts directly to the affiliate’s PayPal account. It is fast, secure, and convenient for global affiliates. Affiliates need to provide their PayPal email ID to receive payouts successfully. To learn more, click here.
4. Bank Account Transfer
This method allows you to pay commissions directly to the affiliate’s bank account. Affiliates must provide their bank details, such as account number and bank name. This option is ideal for local or regional payouts where bank transfers are preferred. To know more, Click here.
5. Custom Mode
Custom Mode is a flexible payout option where you can define your own method of paying commissions. It can include PayPal, Stripe, cheque payments, crypto payments, manual cash handling, or any unsupported payout method that your business follows. You can export the affiliate's commission list and specify instructions or notes under this section so affiliates understand how they will receive their payments. To know more, Click here.
Payout modes of Affiliate
There are 2 types of Affiliate payout modes, which are:
1.) Automatic payout mode - Automatic commission mode provides the commission to the Affiliates automatically. There is no manual effort is required. Once the affiliate's commission meets the payout criteria (minimum payout amount or payment cycle), the system processes the payout without any manual action.
Note: There are only 2 ways to pay affiliates using automatic mode:
- Loyalty rewards
- Store credit
2.) Manual payout mode - Manual commission mode allows you to review and process payouts manually. The system will calculate affiliate commissions, but it will not send the payment. Instead, you must mark the commission as paid after transferring the amount through your preferred method (PayPal, Stripe, Cash App, or any offline/unsupported mode).
Note: Supported payment of manual payout are:
- Loyalty rewards
- Store credit
- PayPal
- Bank account
- Any offline/Unsupported mode
Steps to enable Automatic or Manual payment mode
Here are the steps to enable automatic or manual payment mode:
Step 2: Go to the Commission settings tab and choose the payout mode as per your needs.
Note: If you want to pay using Loyalty points or Store credit, you need to scroll down a littile bit and will get option to assign the Loyalty rewards settings.
Now, if you choose the automatic payment mode, the commission will be paid automatically. If you want to pay commission manually, you can check the steps below.
Manual commission mode
Step 2: Go to the Withdrawal request tab and either pay by PayPal or pay via another mode.
Step 3: If you choose Pay via other mode, you can choose the payment method and transfer the payment.
1. Bank account - If you choose to pay using a bank account, you can copy and paste the bank details to your payment gateway and pay them. Once you pay them, click on Confirm payment.
2. Loyalty points - If you choose to pay Loyalty points, you just need to click Confirm payment, and the commission of the Loyalty points will be assigned to the Affiliate's account.
3. In-Store credit - If you choose In-store credit, you just need to click on Confirm payment, and commission will be paid in the form of store credit.