Payout is a term that the revenue got per one sale or conversion. Once the affiliate partnership is set, your affiliates will earn the commissions after they refer visitors to your website (via specific affiliate links) and the visitors who come to your site get converted into customers (after your product or service purchase). That commission keeps accumulating in each affiliate’s personal profile and they receive it at a set date when both sides agree to make a payout.
A payout can perform as an overall payment or it can be also paid off on a periodic basis either as a percentage of the costs invested or as an estimated sum of costs. These are commonly called as:
- Fixed payouts – the estimated sum of costs that are paid off over a specific period of time (usually once a month).
- Dynamic payouts – the estimated percentage of the total revenue earned during a specific period of time.
As a rule, the payouts are made once a month (mostly at the start of the new month to calculate and pay the previous month’s costs earned). They can be paid off either via payment system accounts or manually (cheque, cash, etc).
Another meaning of payouts refers to the period of time in which the project or investment is expected to return its primary investments and become minimally profitable.
