A payment threshold is the minimum amount of commission an affiliate has to earn before triggering their payment from affiliate programs. There are two main factors involved in the payment threshold. These are:
- Minimum payment: The minimum payment is the specific price that the affiliate must meet before initiating a withdrawal. It may be $50, $100, more or less. It varies based on different affiliate programs.
- Time interval: Affiliates are expected to make the minimum payment required to initiate withdrawal within a specific time interval for all affiliate marketing programs. The time interval could be monthly or quarterly and may vary across different affiliate marketing programs.
Once the time interval is up, the commissions that the affiliate has earned are accumulated compared to the expected minimum payment. An affiliate doesn’t get paid for that time interval if they don’t meet up to the minimum payment, but their commission is secured. In this case, the commission is rolled over or transferred to the next time interval. If the accumulated commission matches or passes the minimum payment level at the next period, they’re paid. Otherwise, it is rolled over again.
When an affiliate earns more than the minimum payment and initiates the payment, the money is sent a few days after the period or time interval ends. The terms of the contract decide this.
