In a recent webinar, industry experts Teddy Ludmer, Senior Alliance Manager at Tipalti, and Ioana Chirnogeanu, Head of Publisher Development EMEA at Everflow, shared invaluable insights on how payment systems impact every aspect of an affiliate program’s lifecycle. Their discussion revealed that payment processes aren’t just an end-of-month administrative task they’re a crucial element that affects affiliate acquisition, activation, loyalty, and program efficiency.
Payment as a Competitive Advantage
When affiliates evaluate which programs to join, payment options often serve as a key differentiator. As Teddy highlighted, “The market is so competitive. Affiliates and publishers sometimes work with multiple providers, and they want to be as efficient as possible.”
Affiliates aren’t just looking at commission rates. They’re asking important questions: Can you pay them in their preferred currency? Do you offer their preferred payment method? What are your payment terms? Remote work is now a way of life and affiliates may relocate to different countries and need payment flexibility that travels with them.
By offering diverse payment options, currencies, and competitive terms, program managers can stand out from competitors and attract high-quality affiliates who might otherwise choose alternative programs.
Streamlining the Onboarding Process
The onboarding process sets the tone for your relationship with affiliates, and payment setup is a critical component. Ioana noted that many publishers have downsized their finance teams and are seeking streamlined operations, making efficient payment processes even more appealing.
“On our side, with our integration with Tipalti, we actually allowed them to upload all of their financial information into the platform and also have an overview of where the payment is, when the payment is coming, and what the status of the payment is,” explained Ioana.
Getting payment details established early prevents unnecessary delays when affiliates earn their first commissions. There’s nothing more frustrating for a new affiliate than earning their first $100 only to discover they need to spend weeks getting verified and approved before receiving payment.
Activating Dormant Affiliates
Payment systems can serve as powerful tools for activating inactive affiliates. Introducing new payment methods or improved terms can re-engage partners who have gone dormant.
Teddy shared, “It’s a good motivator, especially when you’re revamping your program or giving a big update on what you’re working on to be like, ‘hey, look, we’ve just implemented a tool to help automate our payments. We have different options.'”
These updates remind affiliates that your program is continuously improving and adapting to their needs, encouraging them to give your program another look.
Building Loyalty Through Payment Innovation
Loyalty in affiliate programs isn’t just about commission rates—it’s about creating a seamless, trustworthy experience. The panel discussed how partner tier systems with customised payment structures can encourage long-term commitment.
Ioana mentioned that Everflow offers partner tiers where “the best partner could basically earn extra, maybe a more competitive payout or maybe just additional revenue.” When combined with reliable, transparent, on-time payments, these structures build trust and loyalty.
Offering incremental incentives with immediate payouts, rather than making affiliates wait until the end of the month, impacts affiliate cash flow positively. This approach keeps them engaged with your program metrics, and strengthens communication between program managers and affiliates.
“I’ve phoned up an affiliate at random and given a goodwill giveaway and said, ‘We’ve noticed you’ve got some really great traffic. Why don’t you double that up this month and I’ll give you an extra 10% commission, and I’ll give it to you in increments of 10 – and you don’t have to wait till the end of the month to get it!'” Lee-Ann recalled.
Enhancing Administrative Efficiency
As affiliate programs grow from a handful of partners to hundreds or thousands, spreadsheet management becomes increasingly unmanageable. The panelists discussed how automated payment systems can save significant administrative time.
“I know we have a mutual customer and we had Aragon Advertising come to work with the two of us. They’re saving about 20 hours a month by moving to a more automated flow,” Teddy shared.
As Lee-Ann pointed out, “That’s three working days in a month which could be spent on a whole number of things like going to new events, recruiting more affiliates, or coming up with better campaigns.”
Ioana added that “their estimation was that they would actually have needed three other people on the team to do the job that Everflow and Tipalti did together.”
Boosting Morale – Inside and Out
Predictable, transparent payments don’t just improve affiliate morale they also enhance internal team dynamics. Payment issues often create friction between marketing and finance departments, with affiliate managers becoming “their finance team’s worst nightmare.”
As programs mature, they can adapt payment terms for proven affiliates. Ioana suggested that once you’ve established trust with top-performing affiliates, you might be able to “change payment terms, for example, let’s say you were paying net 30 until now, now you can do net 14.”
These improvements reward loyalty while making affiliates’ business planning easier, as they can better forecast their cash flow and operations.
Action Points
- Evaluate your payment flexibility: Take a comprehensive look at your current payment offering across currencies, methods, and terms. Identify gaps that might be putting you at a competitive disadvantage and develop a plan to address them.
- Integrate payment information into onboarding: Review your affiliate onboarding process and ensure payment details are collected during initial signup rather than waiting until after affiliates have earned commissions. This prevents delays and frustration later.
- Leverage payment terms strategically: Consider implementing faster payment terms or incremental incentive payouts for your high-performing affiliates. These strategic payment approaches can significantly increase loyalty and program growth without necessarily raising commission rates.
Remember… if you want to scale, you need to think about payments. If you want to retain your affiliates, you need to think about payments. If you want to reward your affiliates, guess what? You need to think about payments!
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