Q: How do I decide on a minimum payout threshold?
The threshold is the minimum a partner must earn before you send money. Set it with this checklist, not a copied number:
— Calculate your cost per payout. Wire fees, PayPal cuts, accounting time. If sending $50 costs you $4, a $50 threshold burns 8 percent on overhead.
— Match it to your average order value. A program with $300 sales can hold $100; a program with $20 sales should sit near $50 so partners actually hit it.
— Decide your hold period separately. Threshold and the wait for refunds to clear are two different levers.
— Offer faster payouts as a reward tier, not the default. Trusted partners at $25, new ones at $100.
The caveat: a high threshold quietly demotivates small affiliates who'll never reach it, leaving balances you owe but never pay. Cap unpaid time: if a partner sits below threshold for 6 months, pay out anyway or refund the network.
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Q: How do I decide on a minimum payout threshold?
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