How Affiliate Marketers Get Paid: Payment Models Explained

Affiliate marketing offers a compelling opportunity to generate passive income by promoting products you believe in, without creating or managing those products yourself. But the payment systems can seem complex at first glance. In this comprehensive guide, I’ll break down exactly how affiliate marketers get paid, the various commission structures, payment methods, and strategies to maximize your earnings.

Key Takeaways

• Affiliate marketers get paid through various commission structures including pay per sale (percentage or fixed fee), pay per lead, pay per click, and recurring commissions.
• Payments are typically processed via direct deposit, PayPal, checks, or cryptocurrency once reaching minimum thresholds, with payment schedules varying by program from weekly to quarterly.

How Affiliate Marketers Make Money

Understanding the fundamental payment models in affiliate marketing is essential before diving into this lucrative field. Let’s explore the various ways affiliate marketers earn their commissions.

Commission Structures Explained

The beauty of affiliate marketing lies in its diverse commission structures, each offering unique advantages depending on your niche and audience.

Revenue Sharing (Commission Per Sale)
This is the most common payment model in affiliate marketing. You earn a percentage of each completed purchase made through your affiliate link. Commission rates typically range from 5% to 50%, depending on the industry and product type. For example, physical products often offer lower commission rates (1-20%), while digital products and services can pay significantly higher rates (20-70%).

The Amazon Associates program exemplifies this model, with commission rates varying from 1% to 20% depending on the product category. When someone purchases through your link, you receive a percentage of that sale.

Cost Per Action (CPA)
With CPA, you get paid when users complete specific actions like signing up for a newsletter, filling out a form, or requesting a quote. This model works particularly well for lead generation in service industries where immediate purchases aren’t common.

Cost Per Install (CPI)
Popular with app developers and software companies, this model pays for each successful application installation through your referral link. The payment is triggered when someone downloads and installs the software you’re promoting.

Flat Fee Per Sale
Rather than a percentage, some programs offer a fixed amount for each sale generated. For instance, hosting companies might pay $100 per new customer regardless of the plan they purchase.

Pay Per Click (PPC)
Though less common, some affiliate programs pay you based on the traffic you direct to the merchant’s website. This model focuses on incentivizing affiliates to redirect consumers from their platform to the merchant’s site.

Recurring Commission Models

One of the most attractive payment structures in affiliate marketing is the recurring commission model, which can create truly passive income streams.

Subscription Commissions
With this increasingly popular model, you earn recurring payments for as long as referred customers maintain their subscriptions. This is ideal for promoting SaaS products, membership sites, and subscription boxes.

For example, if you refer someone to an email marketing service that costs $30/month with a 30% commission rate, you’ll earn $9 every month they remain subscribed. Over time, these small commissions compound into significant passive income.

Tiered Commissions
Programs that increase your commission rate as you reach certain performance thresholds reward high-performing affiliates. Your commission percentage grows as you generate more sales or revenue, incentivizing continued promotion.

For instance, you might start earning 20% commission, but after generating $10,000 in sales, your rate increases to 25%, and after $25,000, it jumps to 30%.

Multi-Level Commission Structures

Some affiliate programs offer more complex payment structures that can multiply your earning potential.

Two-Tier Affiliate Programs
These programs pay you not only for your direct referrals but also when you refer other affiliates who then make sales. It’s similar to multi-level marketing but typically limited to just two levels.

For example, WP Engine’s affiliate program allows you to earn $50 for each sale generated by affiliates you’ve referred to their program, creating an additional revenue stream beyond your direct promotions.

Hybrid Models
Many programs now combine multiple payment types, such as a flat fee per lead plus a percentage of sales, providing more stable income for affiliates. These creative structures can offer the best of multiple worlds.

Payment Methods For Affiliate Marketers

Once you’ve earned commissions, how do you actually receive your money? Let’s explore the most common payment methods used by affiliate programs.

Direct Bank Transfers

Bank transfers remain one of the most reliable payment methods, especially for established affiliate programs with domestic affiliates. This method involves direct payments from the merchant’s account to the affiliate’s bank account.

Pros:

• Simple and reliable for domestic affiliates
• No intermediary platforms needed
• Suitable for high-value payments due to minimal percentage-based fees

Cons:

• International transfers can incur high fees
• Slower processing time for cross-border payments
• Requires sharing sensitive banking information

PayPal

PayPal is arguably the most popular payment method for affiliate marketers worldwide due to its accessibility and convenience. Many major affiliate programs, including Amazon Associates, offer PayPal as a payout option.

Pros:

• Widely recognized and used globally
• Quick transfer times, often instant
• Only requires an email address to receive payments

Cons:

• Transaction fees can be high (up to 2.9% + $0.30 per transaction)
• Some countries have limited PayPal functionality
• Potential withdrawal fees or currency conversion charges

Checks

Traditional paper checks remain an option with some affiliate programs, though they’re becoming less common in the digital age.

Pros:

• No need for online payment accounts
• No transaction fees for the recipient
• Accessible to those without digital banking

Cons:

• Slow delivery times
• Risk of loss in mail
• Often requires higher minimum payout thresholds (typically $100+)
• May incur bank deposit fees

Cryptocurrency

As digital currencies gain mainstream acceptance, more affiliate programs are offering cryptocurrency payments. This method is particularly appealing for international affiliates seeking to avoid currency conversion fees.

Pros:

• Lower transaction fees than traditional methods
• No geographical restrictions
• Greater privacy
• No currency conversion fees

Cons:

• Volatility in value
• Learning curve for new users
• Limited acceptance among all programs

Prepaid Debit Cards

Some affiliate networks issue prepaid debit cards that are automatically loaded with your earnings.

Pros:

• Immediate access to funds
• Can be used anywhere major credit cards are accepted
• No need for a bank account

Cons:

• Potential maintenance fees
• Limited availability across programs
• May have ATM withdrawal fees

Store Credit

Certain affiliate programs, particularly those run by retailers, may offer store credit as a payment option.

Pros:

• Often provides higher value than cash equivalents
• Immediate availability
• No transaction fees

Cons:

• Limited to purchases from that merchant
• Non-transferable to cash
• Expiration dates may apply

Payment Schedules And Thresholds

Understanding when and how you’ll get paid is crucial for managing your affiliate marketing business effectively.

Common Payment Timeframes

Affiliate programs typically follow one of these payment schedules:

Monthly Payments
Most affiliate programs process payments monthly, usually within 30-60 days after the end of the month in which commissions were earned. For example, commissions earned in January might be paid at the end of February or March.

Bi-Monthly Payments
Some programs, like ClickFunnels, pay twice a month (typically on the 1st and 15th), providing more frequent access to your earnings.

Weekly Payments
Less common but highly attractive, weekly payment schedules offer the fastest access to your commissions.

Net-30, Net-60, or Net-90 Terms
These terms refer to the number of days after the end of the earning period before payment is processed. Net-30 means payment within 30 days, Net-60 within 60 days, and so on.

Minimum Payment Thresholds

Most affiliate programs establish minimum payment thresholds that must be reached before issuing payment. Common thresholds include:

• $10-$25: Low threshold programs (Amazon offers payments starting at $10 for direct deposit)
• $50-$100: Medium threshold programs (many affiliate networks)
• $100+: Higher threshold programs (often for check payments)

If your earnings don’t meet the minimum threshold in a given period, they typically roll over to the next payment cycle until the threshold is met.

Cookie Duration And Attribution

While not directly related to payment methods, cookie duration significantly impacts when and how much you get paid.

Cookie Duration
Cookies track users who click your affiliate links, ensuring you receive credit for their purchases. Cookie durations vary widely:

• 24 hours (Amazon Associates)
• 30 days (common for many programs)
• 45-60 days (more generous programs)
• 90+ days (premium programs like Grammarly)

Longer cookie durations increase your chances of earning commissions, as customers have more time to make purchasing decisions after clicking your link.

Attribution Models
Most affiliate programs still use last-click attribution, meaning the affiliate who drove the final click before purchase receives full credit. However, multi-touch attribution models are gaining popularity, recognizing the various affiliates who influenced a purchase decision.

Maximizing Your Affiliate Earnings

Now that you understand how affiliate marketers get paid, let’s explore strategies to maximize your earnings.

Choose Programs With Recurring Commissions

One of the smartest ways to increase your affiliate income is to promote products that offer recurring commissions. When you convince someone to subscribe to a service, you earn commissions for each month they remain subscribed.

For example, promoting an email marketing service with a 40% commission rate on a subscription that lasts an average of 7 months could earn you $350 from a single referral. This creates truly passive income that continues to grow as you add more subscribers.

Focus On “Sticky” Products

“Sticky” products are essential tools that users find difficult to abandon once they start using them. These products typically have high retention rates, making them ideal for recurring commission models.

Examples of sticky products include:

• Email marketing software
• Project management tools
• CRM systems
• Web hosting services
• Bookkeeping software
• VPNs
• Cell phone plans

By promoting these products, you increase the likelihood of earning long-term recurring commissions.

Negotiate Exclusive Discounts

Offering exclusive discounts through your affiliate links can significantly boost conversion rates. Contact your affiliate partners and ask if they can provide special promotional codes for your audience.

These exclusive offers create urgency and provide additional value to your audience, increasing the likelihood they’ll purchase through your links.

Promote High-Ticket Items

While low-ticket items might convert more easily, focusing on high-ticket products can dramatically increase your earnings per sale. A 10% commission on a $1,000 product ($100) is far more valuable than a 10% commission on a $20 product ($2).

Consider promoting premium software, luxury products, or high-end services to maximize your commission per conversion.

Diversify Your Commission Structures

Don’t limit yourself to a single commission model. By promoting products with various payment structures, you can create multiple income streams:

• Revenue sharing for immediate income
• Recurring commissions for long-term passive income
• CPA offers for lead generation
• Two-tier programs to earn from other affiliates

Understanding how affiliate marketers get paid is fundamental to building a successful affiliate marketing business. By selecting the right programs with favorable payment terms and implementing strategic promotional tactics, you can create a sustainable income stream through affiliate marketing.