Affiliate Payout Policy

Overview

This Payout Policy document provides clear, detailed information about how and when affiliates receive their commission payments. Use this template to set clear expectations and reduce payment-related support inquiries.

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[COMPANY_NAME] Affiliate Payout Policy

Effective Date: [EFFECTIVE_DATE] Last Updated: [LAST_UPDATED]

This policy outlines the payment terms for the [COMPANY_NAME] Affiliate Program. By participating in our program, you agree to these terms.

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1. Commission Structure

Base Commission Rates

Product/Plan	Commission Rate	Type
[PRODUCT_1]	[RATE_1]%	[One-time/Recurring]
[PRODUCT_2]	[RATE_2]%	[One-time/Recurring]
[PRODUCT_3]	[RATE_3]%	[One-time/Recurring]

Commission Tiers (if applicable)

Tier	Monthly Sales	Commission Rate
Starter	$0 - $[THRESHOLD_1]	[RATE_STARTER]%
Silver	$[THRESHOLD_1] - $[THRESHOLD_2]	[RATE_SILVER]%
Gold	$[THRESHOLD_2] - $[THRESHOLD_3]	[RATE_GOLD]%
Platinum	$[THRESHOLD_3]+	[RATE_PLATINUM]%

Recurring Commissions

For subscription products:

• Duration: [RECURRING_DURATION] - (e.g., "Lifetime", "12 months", "First year only")
• Rate: [RECURRING_RATE]% of each recurring payment
• Eligibility: Continues as long as the customer remains subscribed

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2. Commission Calculation

What's Included

Commissions are calculated on:

• Net sale amount (after discounts)
• Excludes taxes
• Excludes shipping/handling fees
• Excludes any transaction fees

Example Calculation

Item	Amount
Product Price	$100.00
Discount Applied	-$10.00
Net Sale Amount	$90.00
Commission Rate	20%
Your Commission	$18.00

Multi-Currency Sales

• Commissions calculated in [BASE_CURRENCY]
• Converted at time of sale using [EXCHANGE_RATE_SOURCE]
• Paid in your selected currency (if different)

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3. Payment Schedule

Payment Frequency

Commissions are paid [PAYMENT_FREQUENCY]:

• Monthly (processed on the [DAY] of each month)
• Bi-weekly (every other [DAY])
• Weekly (every [DAY])

Payment Timeline

Event	Timeline
Sale occurs	Day 0
Commission recorded	Within 24 hours
Hold period	[HOLD_PERIOD] days
Commission becomes payable	Day [HOLD_PERIOD + 1]
Payout processed	Next scheduled payment date
Funds received	1-5 business days after processing

Hold Period

We hold commissions for [HOLD_PERIOD] days to account for:

• Refund requests
• Chargebacks
• Fraud verification

After the hold period, commissions become available for payout.

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4. Minimum Payout Threshold

Threshold Amount

The minimum payout threshold is [MINIMUM_PAYOUT].

• Commissions below this threshold roll over to the next payment period
• No expiration on accumulated commissions
• You can request a lower threshold by contacting [SUPPORT_EMAIL]

Threshold by Payment Method

Payment Method	Minimum Threshold
PayPal	[PAYPAL_MIN]
Bank Transfer (ACH)	[ACH_MIN]
Wire Transfer	[WIRE_MIN]
Wise	[WISE_MIN]
Check	[CHECK_MIN]

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5. Payment Methods

Available Methods

We offer the following payment methods:

PayPal

• Processing time: 1-2 business days
• Fees: [PAYPAL_FEE] (covered by [Company/Affiliate])
• Requirements: Valid PayPal email address

Bank Transfer (ACH) - US Only

• Processing time: 3-5 business days
• Fees: None
• Requirements: US bank account, routing number, account number

International Wire Transfer

• Processing time: 5-10 business days
• Fees: [WIRE_FEE] (deducted from payment)
• Requirements: SWIFT/BIC code, IBAN, bank details

Wise (TransferWise)

• Processing time: 1-3 business days
• Fees: Varies by currency
• Requirements: Wise account email

Check (US Only)

• Processing time: 7-14 days (mailing time)
• Fees: None
• Requirements: Valid mailing address

Setting Up Payment Method

1. Log into your affiliate dashboard
2. Navigate to "Payment Settings" or "Payout Preferences"
3. Select your preferred payment method
4. Enter required information
5. Save and verify (if applicable)

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6. Tax Requirements

For US Affiliates

If you expect to earn $600+ in a calendar year:

• You must complete a W-9 form
• Submit via your affiliate dashboard or email to [TAX_EMAIL]
• 1099-NEC will be issued by January 31 for the prior year

If you don't submit a W-9:

• Payments may be withheld
• 24% backup withholding may apply

For International Affiliates

Required documentation:

• W-8BEN (individuals) or W-8BEN-E (entities)
• May be subject to withholding based on your country's tax treaty

Tax treaty benefits:

• [COUNTRY_1]: [RATE]% withholding
• [COUNTRY_2]: [RATE]% withholding
• No tax treaty: [DEFAULT_RATE]% withholding

Your Responsibility

You are responsible for:

• Reporting affiliate income on your tax returns
• Paying any applicable taxes in your jurisdiction
• Maintaining your own tax records

We are NOT your employer and do not withhold income taxes (except backup withholding or treaty withholding where required).

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7. Adjustments and Deductions

Refunds

If a customer you referred requests a refund:

• Commission is reversed after refund is processed
• Appears as negative adjustment in your dashboard
• May reduce pending or future payouts

Chargebacks

If a chargeback occurs:

• Commission is reversed
• May result in [CHARGEBACK_FEE] fee (if applicable)
• Pattern of chargebacks may result in account review

Fraud

Commissions earned through fraudulent means:

• Will be reversed immediately
• May result in account termination
• Legal action may be pursued

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8. Account Requirements

Keeping Your Account Active

To remain eligible for payouts:

• Keep contact information current
• Respond to verification requests within [DAYS] days
• Complete required tax documentation
• Comply with program terms and conditions

Inactive Accounts

If your account is inactive for [INACTIVE_PERIOD] months:

• We may attempt to contact you
• Pending commissions may be forfeited after [FORFEITURE_PERIOD]
• Check local laws regarding unclaimed property

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9. Disputes and Questions

Discrepancies

If you believe there's an error in your commissions:

1. Review your dashboard and transaction history
2. Gather relevant information (dates, transaction IDs)
3. Contact [SUPPORT_EMAIL] within [DISPUTE_PERIOD] days
4. We'll investigate and respond within [RESPONSE_TIME] business days

Appeal Process

If you disagree with our initial response:

1. Request escalation in writing
2. Provide additional supporting information
3. Final decision within [APPEAL_DAYS] days

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10. Policy Changes

We may update this policy with [NOTICE_PERIOD] days notice. Changes will be:

• Communicated via email to your registered address
• Posted on our affiliate portal
• Effective [NOTICE_PERIOD] days after notification

Continued participation after changes constitutes acceptance.

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Quick Reference Card

Item	Detail
Commission Rate	[RATE]%
Cookie Duration	[COOKIE_DAYS] days
Hold Period	[HOLD_PERIOD] days
Minimum Payout	[MINIMUM_PAYOUT]
Payment Frequency	[FREQUENCY]
Payment Day	[DAY] of each month
Support Email	[SUPPORT_EMAIL]

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Contact

Payment Questions: Email: [PAYMENTS_EMAIL] Response time: [HOURS] business hours

General Affiliate Support: Email: [SUPPORT_EMAIL] Dashboard: [DASHBOARD_URL]

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How to Use This Template

1. Fill in all [BRACKETED] variables with your specific terms
2. Review with finance/accounting to ensure accuracy
3. Have legal review before publishing
4. Make easily accessible - link from dashboard and affiliate agreement
5. Update when terms change - always notify affiliates