Affiliate Marketing Q&A Series: The Money Side of an Affiliate Marketing Business

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Howdy there – Welcome back!

How are you doing so far? I hope I’ve helped clear up some things for you during this affiliate marketing question and answer run down, but if you still have questions or are confused about anything at all, remember I’m only a comment away and I do reply to all comments left on my posts here. After all, I wouldn’t be teaching you about affiliate marketing, if I didn’t want you to succeed with it.

Today is the 5th and final post in my question and answer series on affiliate marketing basics. If you’re just now joining me or have missed any of the previous posts you can find the links to each post in the series right here:

This go around, we’re talking about the part of affiliate marketing that you’ve probably been wondering the most about (or at least the part that got you interested in affiliate marketing in the first place)…

The Moola!

First, we’ll talk about how you’ll get paid as an affiliate. Then, in my next post (Part 6), we’ll go over costs associated with promoting affiliate programs (don’t worry it’s not going to break your bank – not even close!) Finally, I’ve got some helpful resources that will help you as you begin to break ground with your affiliate marketing business.

Let’s do this, shall we?

Q: How and when do affiliate marketers get paid?

A: Payment times and methods vary from affiliate program to affiliate program, but the majority of online affiliate programs pay their affiliate commissions the month after sales have been made. Here’s an example:

Let’s say you referred 5 visitors to a site and 3 of those converted into sales in the month of January. In a program that pays the month after, you would receive your commissions for those five sales sometime in February. I’ve seen many who pay out on the 10th, 15th and even last day of the month for previous month’s commissions.

As for how affiliate marketers get paid, as I stated earlier in this series Paypal is a very common method of payment for affiliate program owners. Some also pay by paper check or direct deposit into a checking or savings account. And some will even give you the choice of how you’d like to receive your affiliate commissions. Personally I prefer (and receive) most of my commissions through Paypal and direct deposit.

Note: Be sure to verify payment percentages and dates with each program you sign up for.

Costs Associated with Affiliate Marketing Promotions (What You Can Expect to Pay Out of Your Pocket)

Q: I’ve been scammed one too many times into paying money for something only to discover it’s a scheme or worse, those requesting the “fees” just take my money and are never to be heard from again. Does it cost anything to become an affiliate marketer?

A: Depending on how you choose to promote products you may incur costs to do so, however to get started and actually become an affiliate marketer, there are no costs unless you plan to promote via a website or blog and do not have one set up yet. If this is the case, you will need to purchase a domain name and a hosting account for your website.

There are no start-up fees or any other fees required to become an affiliate marketer. No money is given by you to the affiliate program owner or anyone else to participate in the programs.

You simply find products you’d like to promote and sign up for their affiliate program by filling out a short form. The information you provide will vary by affiliate program but here are the main ones that almost every program asks for.

  • First Name
  • Last Name
  • Email Address
  • Login Information including login name and password (if they aren’t automatically generated)
  • You paypal email address (so they can send your commissions)
  • Your Mailing Address (especially important if you are receiving your commission payments via check)

Some programs may also ask for your telephone number and/or your Tax ID or Social Security number. Don’t be scared because they ask for this information. If you live in the United States and make over $600 in any given year in commissions, the affiliate program owner is required by the IRS to send you a Form 1099 for tax reporting purposes and will need your Tax ID or Social Security number for this reason only.

I personally have found that if a company needs to send you a Form 1099 and you don’t provide your Tax ID or Social Security number at sign up; most will ask you individually when the time comes. They can alternatively ask you to fill out a form W-9, which is an IRS form and is completely legal. That being said it is up to you whether you feel comfortable giving them your information at sign up. Some programs do require this information up front, which is why you need to do some research prior to doing so if you feel uncomfortable. A few ways you can do this are to ask other affiliate marketers if they are promoting that particular program and do a search online about the company.

Speaking of Taxes

While we’re on the subject of taxes, affiliate income is taxable income so be sure you are reporting it to the IRS (or if you live in a country other than the U.S with your tax authority), even if it is less than $600. Other than that, taxing is out of the scope of this post. However, you can visit www.irs.org and research information regarding self-employment income for more information.

More on Costs to Affiliate Marketers

Earlier, I mentioned the fact there can be costs associated with affiliate marketing depending on how you choose to promote a product. While the details of these types of promotions are also out of the scope of this post here are just a few items that may incur costs should you so choose to use them.

  • Purchasing a website specifically for promotion of a program.
  • Buying the actual product or service in order to get a better idea of how it works, what the customer service is like, to write a detailed review, etc.
  • Paying for options such as taking out newspaper ads, Google Ads, or other forms of advertising for the product beyond things you may already possess.

Again, these are extra costs that you choose whether or not to acquire. They are NOT required to be an affiliate marketer by any means.

By this point you should have a better understanding of what affiliate marketing is and how it works. You now have answers to the most common affiliate marketing questions and are equipped with everything you need to get started with your own successful affiliate marketing business. Whether you choose to promote products or services online or off, you know where to go to find products, how you’ll be paid and even a few tips on how to market your recommendations.

If you’re ready to get started and would like a step-by-step, proven formula, keep your eyes open because I’m putting together a comprehensive course, where you’ll learn even more about affiliate marketing, including step-by-step instructions to get your business up and running, in-depth techniques, strategies and tips to boost your commissions and more!

Arika Lewis

If you’d like to learn more about affiliate marketing with the use of PLR content, I invite you to join me at PLRArsenal.com where I share lots of free information on using PLR as an affiliate marketer, including new PLR announcements and sales. See you there!

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27 Responses to Affiliate Marketing Q&A Series: The Money Side of an Affiliate Marketing Business
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    March 25, 2011 | 4:10 pm

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  4. Kwon
    May 10, 2011 | 3:37 pm

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    May 27, 2012 | 4:51 pm

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    June 9, 2012 | 4:11 am

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  16. Terrinda S. Davidson
    June 9, 2012 | 4:11 am

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  17. Terrinda S. Davidson
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  19. Terrinda S. Davidson
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  20. Terrinda S. Davidson
    August 29, 2012 | 10:31 pm

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  21. Terrinda S. Davidson
    September 8, 2012 | 4:21 pm

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  22. Terrinda S. Davidson
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  23. Terrinda S. Davidson
    October 18, 2012 | 12:24 am

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  24. Terrinda S. Davidson
    November 1, 2012 | 11:32 pm

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  25. Terrinda S. Davidson
    November 23, 2012 | 4:26 am

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  26. Terrinda S. Davidson
    December 17, 2012 | 9:28 am

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  27. Terrinda S. Davidson
    December 23, 2012 | 7:30 pm

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