From the most recent AffStat Report we know that the top three affiliate-preferred payment methods are: Direct deposit (62.1%), Check (17%) and PayPal (17%). Here the full pie chart:
Now, what about payment frequency? How often do affiliates prefer to receive their payments?
I started this poll, and so far the results of it look as follows:
It seems that the majority of affiliates are preferring weekly payments. It also appears that international affiliates are generally the ones that prefer monthly payments, and primarily due to the fees they incur on receiving international wire transfers or cashing international checks.
If you are an affiliate reading this, and you haven’t voted yet, please do so here.
Hey Geno – we discussed this privately, but I’ll share my thoughts publicly:
Payment frequency isn’t that important to me, as long as payments are on time!
If you say weekly, make it weekly. If you say monthly, make it monthly.
Thank you for this, Eric. Very important point, and I’m glad you chimed in with this comment.
I’m surprised that anyone voted for wire, since most banks will actually charge you $10 for accepting a wire transfer. Those must have all been international affiliates that have little other choices.
Yep, I thought of that too (when I first saw it), Trisha. Yes, more than likely these were international affiliates which do not have DD (direct deposit) available for their country, and wire is cheaper than cashing a foreign currency check.
I agree with Eric, the most important is to get money on time. Frequency is not so important.
I would disagree with this statement (“frequency is not so important”), Piotr. In some cases (e.g.: where substantial and frequent investments are involved on the affiliate part), it is better to be paid more frequently (as the poll is showing) than less often.
Geno,you are right about the case you describe. However if it happened to you not paid on time you probably would not be focused on frequency so much.
True too, Piotr, and punctual payment is definitely a must. Kind of common sense too.
The flip side of payment frequency is cost. Affiliate marketing is in principle borderless, and cross border transfers are expensive (and can be slow). It’s only a matter of time before better cross-border alternatives to direct deposits such as virtual prepaid cards become widely adopted. I think this is the most realistic option that balances convenience to the affiliate with cost efficiency for the merchant or the network.
I’ll be offering direct deposit and Paypal as payment options for my affiliate program. Would it be an unwise idea to require PayPal verified accounts only for those choosing Paypal as an option?
Thanks!
I don’t see anything unwise in working with PayPal-verified accounts (for PP payments) only.
By the way, the 2011 version (which is newer than what I quoted in May 2010 above) of the AffStat Report is available here.
Wonderful. Thanks! There is a lot to consider with an affiliate program. 🙂