Why do sponsors have a minimum payout?
 

who cares if I only made $40 this pay period, send me my fucking check!

I don't know how many sponsors have I tried out where I only made $20 or $30 and because I didn't hit the minumum payout I dont get my check.

the administrative costs is doing a "check run" for a large sponsor are quite high.....

We have a $100 minimum...but make exceptions for people that are desparate for their money....

:2 cents:

Checks and postage cost money ya know..

And ccbill deducts it.

Get out a calculator and run some numbers. Imagine all the affiliates that NEVER meet the minimum payout, so the sponsor keeps it. The amount that is saved from this can be HUGE. :2 cents:

It may be partially this, but honestly I don't think that's the main contributor.
I think it's to encourage sales, also to save money on printing runs. Cause damn it's expensive!

it costs $10 to generate an envelope and the stamp?
If the sponsor is sending out checks bulk mailed anyways, I dont understand why they can't just throw the smaller webmasters in that pile.

fine, a $2 is not worth it, but higher amounts that get withheld.
I just think it's rude to hold someone's money, like they're not worth sending a check out to so you get to keep it.

if you dont like it then dont sign up to the sites.

cutting checks costs money in man power, paper costs, ink costs etc..etc..

You earn 15 bucks and you think a sponsor is obligated to spend 1.50 of their own money (10% of your paycheck) to send you the money?

Bottom line is this isnt a suprise, the miniums are always disclosed. If you dont like the minimums than start your own PPS program and you'll soon figure out a lot more reasons than the one listed above that justify not sending out unless minimums are met.

Its called "systemic costs" in economics.:2 cents:

Most if not all the sponsors are good at saying what the minimum payout is when you join their program. If you don't like their terms, don't join.

If you can't make the minimum payout its simple....

Send more traffic or get out of the business

Well Said:thumbsup

Yeah... needing to get that $40 cheque is a sure sign that you need to work on your traffic.

Most of the time, it is not the " sponsors" that has or keeps the money, but the IPSP ... some put away the calculator and use a computer to " compute" how much they have in their piggy bank...

MaxCash doesn't have minimum payout

Most sponsors I have used is $50 minimum payout.

Makes sense to me, since we need to transfer our cheques into £ and the bank takes £7 for transfering it. $50 I'd end up with about £20 if I'm lucky, so its no biggie to me.

If you are being paid by check our minimum payout is $20, simply because of the cost we incur per check cut. We, like most major sponsors, outsource this, so the expense per check can be quantified.

We have no issues paying a webmaster via check if their payout is less than $20, if they ask. We rarely have requests, simply because most of our active webmasters are clearing far more than $20 a pay period or they know they will break the $20 next pay period.

The above is even more so, when we are talking wire transfers.

and Epoch takes $2.00 ...

We don't have a minimum payout on US webmasters but we do for international which is $100

We have a minimum payout of $50 due to the costs associated with paying out.


So for some people that might mean one check a month instead of two.


But depending on your situation webmasters are always welcome to request a higher minimum payout, or request the money they are owed.

maybe it's also an attempt for you to send more traffic?

Most places will let you close the account regardless of you not meeting the minimum payout, in which case they simply send you what they owe you.

I agree with "systemic cost".

TONS of affiliates do not meet the minimum... a few do..... so the sponsor only has to process a few checks, thus incurring a smaller processing fee which creates an even higher profit margin, all while hoping that you never reach the minimum and give up those 1 or 2 sales... :)

I wish the minimum payout was MUCH higher. I hate going to the bank and having 20 $50 cheques. :ak47:

DH

i agree - and I hate these fucking weekly programs - they should all be monthly with a one month holding period over and above as well to help prevent fraud

The bank tellers all hide under their desks when you come through the door :1orglaugh

It's true though, it is time consuming.

Can't you decide what your minimum payout is?

If not lmk. :winkwink:

This is really the most perfect form of shaving. You get $49.99 in sales at some shitty sponsor with a $50 min payout and 9 times out of 10 you'll never hit $50 so there goes your money.

It doesn't cost any more to print a $25 check than it does a $2500 check so that excuse is bullshit. If they are that cheap then fuck 'em, you don't want to do business with assholes like that anyway.

Run your own programs people, you will make so much more money and shit like this will soon become a distant memory.

Cause the cost for the checks, it's not worth it to send a check for $10.00 or $20.00.

jDoG

That's just what I was going to say. They make so much money off unclaimed balances like this...

Personally if I was stuck at a few bucks under the minimum payout, I'd just sign up for a trial with one of my or a friend's CC, and get my money out of there :321GFY

Oh, did paper go up in price? Last I checked it was still less than a penny per sheet...

I've got a couple checks back in the day for some silly amounts like $0.12 and $0.27 i was shocked they sent them. :1orglaugh

I had a program set up for no minimum payout and i had an affiliate ask me to enfoce a minimum payout.

of course this person was being payed with a wire transfer so on the smaller transfers he still got hit with all the wire fees.

And do you run a program at all, do you know the costs?

jDoG

Check minimums are one thing but people being paid via paypal or other forms of epayment should not have a minimum since they are the ones covering the cost of the transaction. Most programs I deal with that do pay by some epayment don't have a minimum which is nice.

I run my own stuff. Checks are cheap, postage is cheap. I don't buy that as an excuse for high minimum payouts. I'd agree that $25 is probably reasonable but $50 or $100 for a program you just want to try is way too high.

Check their TOS... the reason for this is that it costs money to send out and process a check. Doesn't make sense to send out a $3 check when it cost $6 to admin, process, dbase, track, print, etc etc.

Wait till you start getting complaints from webmasters in Europe that their 20.00 check didnt arrive in less than 7 days and can you research it, stop payment on it, and issue another one with some kind of tracking so it doesnt happen again, and all this after they have started a thread on gfy about you not paying..haha

about 5% of your affilates will send you 90% of your traffic..

We have 100.00 payout min. We used to have no limit but the b.s. associated with the guy missing the 20.00 check wasnt worth it.. We estimated the 2.00 figure was pretty accurate as far as man hours etc..

Chris

don't sponsors payout all accounts under the minimum payout level at the end of the year?

ryan

NO

why??
because they make sense