Quote:
Originally Posted by **********
It's a different world than it was 2 years ago. These days sales are lower, margins are tighter, but people still want to make as much as possible.
We ourselves charge $7.95 for each check we send out, or $35.00 for a wire transfer. The $35 is charged to us from our bank of course so we don't make any money paying out by wire. The $7.95 is to offset the cost of accounting.
There is much more than writing a check and licking a stamp. Sometimes it can be budgested to pay down the initial investment in the accounting software or infrastructure, or sometimes its just put towards the cost of staff. For example, the person who makes the checks is usually the same person who has to reconcile the accounts and make sure people are paid properly. Very often, people suddenly want to have checks made to someone else, or change their company name, move to a new city, etc etc, which takes a lot of expensive customer support and TLC.
The best way to save on the cost of your affiliate checks is to simply raise the minimum payout you wish to receive. It doesn't pay to ask for payouts at $50.00 especially if you are paid every week. Try increasing your minimum payout to something like $500. At the typical cost-of-payout, this will drop your cost to be paid from 14% to about 4% and the money you save will add up quickly too.
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Great so I up the amount for me to be paid out so I can save on the fees for the money to be sent to me, so the company can hang on to my money longer and they collect the interest on it, which I lose.
Companies still have to cut checks and reconcile accounts, do accounting work even without affiliates. That position/person still needs to be there.
It's just plain tacky, nickle and diming. Comes across so much better for the company to make it up somewhere else even if the affiliate makes less in the long run. It's all about perception and the pereception I get of a company that wants to charge me to send me a check is not good.
How about I start charging affiliate companies a nickel extra surcharge for every signup I send on top of their pay rate. That can go to help covering my over head.
In my situation, I am signing up to a lot of companies for a project where signups will be distributed over 100s of programs. It might take me months to reach a $500 min. with one company and to be honest I wouldn't want half these companies who are nickle and diming me to hold onto my money that long. If they that hard up to try to recoupe $2 for cutting a check and cut corners doesn't give me a good sense of security that some of them will be in business several months in the future when it would be time to send me the money.