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  1. #1
    Join Date
    Aug 2004
    Location
    Indiana
    Posts
    1,205

    Affiliate Payouts

    First, I'm going to be using WHM AutoPilot

    Second, I have a few affiliates in mind and want to give them money for each customer they refer and signs up with me.

    I origionally wanted to give out the nice one time payment per customer only if the user stays with me for 3 months. WHMAP doesn't support this.

    Do I really need to worry about losing customers and them not staying with me after the first month?

    My only fear is if I have to pay the affiliate if many customers only stick with me for the first month, but then drop it.

  2. #2
    Join Date
    Jul 2004
    Posts
    246
    What we do is pay commissions monthly when they reach $50.00 or more per month. This will help in retain those affiliates from abusing us if they are just looking for one time payout and want to move on.

  3. #3
    Join Date
    Jan 2005
    Location
    USA
    Posts
    1,379
    I'm having the same problem. I planned on doing the following.

    I have four hosting packages. I was thinking about giving 10% monthly for the lowest, 13% monthly for the next, 17% monthly for the third, and 20% monthly for the fourth.

    WHM AP just allows monthly payout, or a one-time payout.

  4. #4
    Join Date
    Aug 2004
    Location
    Indiana
    Posts
    1,205
    Originally posted by rmMark1
    What we do is pay commissions monthly when they reach $50.00 or more per month. This will help in retain those affiliates from abusing us if they are just looking for one time payout and want to move on.
    I guess this would help, but for some packages I would be offering $20 per customer on a $10/month package. I guess this is just some risk I might have to take!

  5. #5
    Join Date
    Jul 2004
    Posts
    246
    I would not payout like that. Offer 50% (or less) of the monthly package. Affiliates love residual, just like we do and they will work harder for you.

    We have been paying out 50% for 8 years now and is one of the main reason we have been successful.
    Last edited by rmMark1; 01-10-2005 at 06:51 PM.

  6. #6
    Join Date
    Aug 2004
    Location
    Indiana
    Posts
    1,205
    Originally posted by rmMark1
    I would not payout like that. Offer 50% (or less) of the monthly package. Affiliates love residual, just like we do and they will work harder for you.

    We have been paying out 50% for 8 years now and is one of the main reason we have been successful.
    You offer 50% of the monthly cost and give that per month?

    That is quite a bit, what is your pricing scheme like?

  7. #7
    Join Date
    Jul 2004
    Posts
    246
    One package is $9.95/month.. affiliate earns $5.00/month
    Another one is $19.95/month...affilliate earns $10.00/month
    Another $49.95/month...affiliate earns $25.00/month
    The low end package is $4.95/month..affiliate earns $2.00/month

    We have been paying this out for 8 years with over 2,400 affiliates
    221 active and 108 earning checks monthly. We have never decreased or increased our prices in that time. Just added more features to the packages over the years. I remember when a package of 5MB of space and 100MBs of bandwidth went for $10.00 a month back in 1997,1998...

    We still have our first customers and affiliates still hosting and earning checks each month from 8 years ago. Not to many host can say that
    Last edited by rmMark1; 01-10-2005 at 07:41 PM.

  8. #8
    Join Date
    Aug 2004
    Location
    Indiana
    Posts
    1,205
    Originally posted by rmMark1
    One package is $9.95/month.. affiliate earns $5.00/month
    Another one is $19.95/month...affilliate earns $10.00/month
    Another $49.95/month...affiliate earns $25.00/month
    The low end package is $4.95/month..affiliate earns $2.00/month

    We have been paying this out for 8 years with over 2,400 affiliates
    221 active and 108 earning checks monthly. We have never decreased or increased our prices in that time. Just added more features to the packages over the years. I remember when a package of 5MB of space and 100MBs of bandwidth went for $10.00 a month back in 1997,1998...

    We still have our first customers and affiliates still hosting and earning checks each month from 8 years ago. Not to many host can say that
    That's really good! I wish I could offer that much payout, I'll probably be closer to 25% very likely

  9. #9
    Join Date
    Dec 2002
    Location
    Ferenginar
    Posts
    4,157
    Anything more than 10% per month re-occuring is very generous and probably isn't a wise business model.
    What's your budget?

    Seriously, what's your budget?

  10. #10
    Join Date
    Jan 2002
    Location
    Boston
    Posts
    5,014
    We have plans from $3.95 - $89.95 with most being between $3.95 and $14.95 and pay a $30 flat fee per account signup with a 30 day wait period.

  11. #11
    Join Date
    Jul 2002
    Location
    Austin, TX
    Posts
    1,100
    We offer a large one time payout to affiliates
    HostGator.com - A worldwide leader in Shared, Reseller, VPS and Dedicated Server Hosting.

  12. #12
    Join Date
    Jul 2004
    Posts
    246
    Originally posted by RossMAN
    Anything more than 10% per month re-occuring is very generous and probably isn't a wise business model.
    Well, in the 8 years, it has worked out well for us and we are a profitable business. New and old webmasters are looking for a source of extra income and generates new business for us daily. The affiliate program is only one source of revenue for us. We have other sources and letting others here know how well it has done for us. By all means host should payout what they can afford.

    So, our business model cannot be measured by this alone. We have other sources for shared/dedicated hosting accounts that come in and are not credited to any affiliates. We do make our own private sales also.
    Last edited by rmMark1; 01-10-2005 at 11:27 PM.

  13. #13
    I would have to agree, paying a monthly residual is the best way to maintain affiliates. The monthly residual gives them a reason to be loyal, which in turn keeps them sign up accounts. Combined this with a low one-time finder fee that gives them instant gratification and you got a great affiliate program.

  14. #14
    Do most of these affiliates have hosting accounts with you? If so, do you give them a credit to their monthly hosting or do you actually mail out cheques each month?

  15. #15
    Join Date
    Jul 2004
    Posts
    246
    Originally posted by peethernet
    Do most of these affiliates have hosting accounts with you? If so, do you give them a credit to their monthly hosting or do you actually mail out cheques each month?
    Yes they do host and we charge them the full amount and send checks once they reach $50.00 or more. If they are below the $50.00, we carry the balance over to the following month.

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