Processing Fees

SpeedyG · 2006-03-18, 06:38 PM

Do the affiliate programs absorb the credit card processing fees or are they deducted from your commission before payouts?

If a program is offering you 50/50 revshare, are you splitting the balance of the sale after the payment processing fees have been deducted?

Are there programs out there that absorb the processing fees?

nekrom · 2006-03-18, 08:03 PM

Some programs deduct the processing fee from the affiliate payout % and others absorb it from their own %, so the affiliate gets a clean % split.

-N

Chop Smith · 2006-03-18, 08:55 PM

A couple of years ago, I was pondering the same question so I did some research. I lost the exact numbers in a hard drive crash but maybe this will help some.

1. Most affiliates of a program thinks of a 50/50 split as a true 50% of gross. So if the subscription is $30 then they are expecting $15
2. If you advertise 50/50 and pay them on gross net of processing then you would be paying about 42.5% of gross.
3. You could advertise a 60/40 split and hide the fact that you are going to pay based on gross less processing and in dollars be at about the same amount as a true 50/50 split.

If I could give you the numbers, it would amaze you at how many choose the third approach. I chose to do number 1. I rather pay the extra $2.17 to my affiliates and never have my honesty questioned. Further, I consider my affiliates true partners and treat them equally. For example, lets say Mr Big Link List says I will promote your sites if you will pay 60% of gross. If I agreed to his terms, I would immediately charge my webmasters' site to say "we pay everyone a true 60% of gross".

I reread this reply and it smells like a can of

.

[BV] · 2006-03-18, 09:19 PM

It varies from sponsor to sponsor but I've noticed that the sponsors that offer the higher percentages tend to pass at least some of the fees on to their affiliates.

We give our affiliates half of the cost of the membership fee. (50/50)
Then we pay all of the processing fees from our half.

So yes to your last question, we absorb the processing fees.

SirMoby · 2006-03-19, 12:26 AM

Quote:

Originally Posted by Chop Smith

I reread this reply and it smells like a can of

.

We love you any way.

Simon · 2006-03-19, 07:17 AM

Quote:

Originally Posted by Chop Smith

3. You could advertise a 60/40 split and hide the fact that you are going to pay based on gross less processing and in dollars be at about the same amount as a true 50/50 split.

I've always looked at that as "penciling the deal" and I never like it when someone tries to do that to me. Anytime I have to check the TOS to be sure how I'll be paid, and find something like that, it turns me off to the program.

I agree with Chop that #1 is a better way, although I take a little different stance on incentive pay. We pay out 50% to 70% of gross, with the sliding percentage based on how many signups someone can generate. If some Mr. Big would like a higher payout on his account, I don't have any reservations about setting his account that way from the start. Of course, I don't have reservations about asking for more traffic and more orders later on, if I don't see that the account is performing like we all thought it would.

I'd like to treat all partners the same, and I try to when it comes to helping them. Usually the Mr Bigs don't need the same help and hand-holding that some of our smaller accounts do. Anytime we can help a smaller webmaster start earning at a higher percentage, I think that's a good thing.

One other thing to check on, SpeedyG, is whether the program will be charging you back for anything. We don't do that, but there are also some programs that will take money from you for things like chargebacks from surfers.

Like anything else, it's a case of webmaster beware.

[BV] · 2006-03-19, 01:57 PM

[quote=Simon]One other thing to check on, SpeedyG, is whether the program will be charging you back for anything. We don't do that, but there are also some programs that will take money from you for things like chargebacks from surfers.QUOTE]

That is pretty standard for programs using 3rd party processing such as all CCBill & Paycom revshare sites. Nothing shady in that practise.

In fact after looking at your site in your sig (Fetish Club) you are using CCBill so in fact if you have a charge back or a refund by a customer and that is an affiliate sale, the affiliate is going to have money deducted from his account.

So in fact you do do that (Take money back from affiliates for CB's. and refunds)

Someone correct me if I am wrong.

Simon · 2006-03-19, 02:30 PM

[quote='[BV]']

Quote:

Originally Posted by Simon

One other thing to check on, SpeedyG, is whether the program will be charging you back for anything. We don't do that, but there are also some programs that will take money from you for things like chargebacks from surfers.QUOTE]
That is pretty standard for programs using 3rd party processing such as all CCBill & Paycom revshare sites. Nothing shady in that practise.

In fact after looking at your site in your sig (Fetish Club) you are using CCBill so in fact if you have a charge back or a refund by a customer and that is an affiliate sale, the affiliate is going to have money deducted from his account.

So in fact you do do that (Take money back from affiliates for CB's. and refunds)

Someone correct me if I am wrong.

Exactly right, BV, I was less than clear in that statement. Of course if someone gets a signup and that person charges back their order, then CCBill does take the money back at the same percentage it was paid out. What I meant to say is that some programs (but not CCBill ones) will charge you a fee for chargebacks.

We don't have any control over the chargebacks being deducted by CCBill, and you're right in that that's how all chargebacks are handled by them.

Speaking of CCBill, their admin section does allow the sponsor to set cookies to expire in 1 day, it allows a sponsor to stop paying after a certain number of rebills, and it allows the sponsor to split the processing fees with affiliates.

So make sure you verify how your sponsors have those things set in their programs. Just fyi, we use the longest possible cookie setting (255 days I think), we pay all rebills forever, and we pay all fees from our end.

Kenny B! · 2006-03-20, 01:16 PM

Depends on the program, most 50/50 programs pay the full amount and some 60%+ programs deduct the fee's.

I know deecash deducts the billing % but they clearly show you that in the stats, I think they are the only ones who show you exactly what's being taken off. Good on them!

Ramster · 2006-03-20, 03:32 PM

I dislike it when a program takes off the processing fees. Pay me 50% and you pay the fees rather than 60% and charge me fees. It's close to 50% by then anyway.

And if it is 50% and I have to pay a share of the fees then the site would have to be extremely nice for me to promote it.

emmanuelle · 2006-03-20, 07:24 PM

We pay a full 60%, and eat 100% of the fees.

Surfn · 2006-03-20, 07:32 PM

Quote:

Originally Posted by Kenny B!

Depends on the program, most 50/50 programs pay the full amount and some 60%+ programs deduct the fee's.

I know deecash deducts the billing % but they clearly show you that in the stats, I think they are the only ones who show you exactly what's being taken off. Good on them!

Flash Cash show you the processing costs associated with each transaction on their revshare programs.

juggernaut · 2006-03-20, 10:40 PM

The wife and I are starting another camsite as we learned so much here that it's just not possible to have one without proper promotion. We will be paying all the fee's for the wm an model. We look at it like this. Without the wm we have no traffic, no traffic means no $, no $ means no site. Pay on the gross. Make life easy, be honest and stay in business.

2006-03-18, 08:03 PM	#2
nekrom Are you sure this is the Sci-Fi Convention? It's full of nerds! Join Date: Jul 2004 Location: Australia Posts: 263	Some programs deduct the processing fee from the affiliate payout % and others absorb it from their own %, so the affiliate gets a clean % split. -N __________________ The afp ownz all your base.

2006-03-18, 08:55 PM	#3
Chop Smith Eighteen 'til I Die Join Date: Apr 2003 Location: Mississippi Posts: 2,168	A couple of years ago, I was pondering the same question so I did some research. I lost the exact numbers in a hard drive crash but maybe this will help some. 1. Most affiliates of a program thinks of a 50/50 split as a true 50% of gross. So if the subscription is $30 then they are expecting $15 2. If you advertise 50/50 and pay them on gross net of processing then you would be paying about 42.5% of gross. 3. You could advertise a 60/40 split and hide the fact that you are going to pay based on gross less processing and in dollars be at about the same amount as a true 50/50 split. If I could give you the numbers, it would amaze you at how many choose the third approach. I chose to do number 1. I rather pay the extra $2.17 to my affiliates and never have my honesty questioned. Further, I consider my affiliates true partners and treat them equally. For example, lets say Mr Big Link List says I will promote your sites if you will pay 60% of gross. If I agreed to his terms, I would immediately charge my webmasters' site to say "we pay everyone a true 60% of gross". I reread this reply and it smells like a can of . __________________ Last edited by Chop Smith; 2006-03-18 at 08:59 PM.. Reason: To add spam comment

2006-03-18, 09:19 PM	#4
[BV] I want to set the record straight - I thought the cop was a prostitute Join Date: Dec 2004 Location: Florida Posts: 292	It varies from sponsor to sponsor but I've noticed that the sponsors that offer the higher percentages tend to pass at least some of the fees on to their affiliates. We give our affiliates half of the cost of the membership fee. (50/50) Then we pay all of the processing fees from our half. So yes to your last question, we absorb the processing fees. __________________ BVBucks.Com BVCash.Com

2006-03-19, 01:57 PM	#7
[BV] I want to set the record straight - I thought the cop was a prostitute Join Date: Dec 2004 Location: Florida Posts: 292	[quote=Simon]One other thing to check on, SpeedyG, is whether the program will be charging you back for anything. We don't do that, but there are also some programs that will take money from you for things like chargebacks from surfers.QUOTE] That is pretty standard for programs using 3rd party processing such as all CCBill & Paycom revshare sites. Nothing shady in that practise. In fact after looking at your site in your sig (Fetish Club) you are using CCBill so in fact if you have a charge back or a refund by a customer and that is an affiliate sale, the affiliate is going to have money deducted from his account. So in fact you do do that (Take money back from affiliates for CB's. and refunds) Someone correct me if I am wrong. __________________ BVBucks.Com BVCash.Com Last edited by [BV]; 2006-03-19 at 02:06 PM..

2006-03-20, 01:16 PM	#9
Kenny B! I'm normally not a praying man, but if you're up there, please save me Superman! Join Date: Dec 2003 Location: Montreal Posts: 472	Depends on the program, most 50/50 programs pay the full amount and some 60%+ programs deduct the fee's. I know deecash deducts the billing % but they clearly show you that in the stats, I think they are the only ones who show you exactly what's being taken off. Good on them! __________________ ken@iacash.com icq: 53962376

2006-03-18, 06:38 PM	#1
SpeedyG Heh Heh Heh! Lisa! Vampires are make believe, just like elves and gremlins and eskimos! Join Date: Feb 2005 Location: Toronto Posts: 74	Processing Fees Do the affiliate programs absorb the credit card processing fees or are they deducted from your commission before payouts? If a program is offering you 50/50 revshare, are you splitting the balance of the sale after the payment processing fees have been deducted? Are there programs out there that absorb the processing fees? __________________ Johnny xXx - TGP/MGP Submit your picture and movie galleries to Johnny xXx

2006-03-20, 03:32 PM	#10
Ramster Life is good Join Date: Apr 2003 Location: Ottawa, Canada Posts: 11,867	I dislike it when a program takes off the processing fees. Pay me 50% and you pay the fees rather than 60% and charge me fees. It's close to 50% by then anyway. And if it is 50% and I have to pay a share of the fees then the site would have to be extremely nice for me to promote it. __________________ Pornstar Legends \| Live Cam Model Shows \| Hungarian Girls Skype: robmurray999

2006-03-20, 07:24 PM	#11
emmanuelle 0100011101100101011001010 1101011001000000100001101 1010000110100101100011 Join Date: Mar 2004 Location: Montreal Posts: 1,441	We pay a full 60%, and eat 100% of the fees.

2006-03-20, 10:40 PM	#13
juggernaut Registered User Join Date: Apr 2005 Location: Central Jersey! If I was rich and powerful I would dress as my avatar does. Posts: 1,448	The wife and I are starting another camsite as we learned so much here that it's just not possible to have one without proper promotion. We will be paying all the fee's for the wm an model. We look at it like this. Without the wm we have no traffic, no traffic means no $, no $ means no site. Pay on the gross. Make life easy, be honest and stay in business.