Affiliate Payout Policy Template
A clear affiliate payout policy template covering threshold, cadence, methods, tax forms, holdbacks, and how disputes are handled.
Clarity about money builds trust. This payout policy spells out exactly when, how, and under what conditions affiliates get paid — publish it so partners never have to guess. Replace the placeholders with your real terms.
The template
Select all, copy, and paste into your own doc. Replace anything in [BRACKETS].
AFFILIATE PAYOUT POLICY — [YOUR BRAND] Last updated: [DATE] 1. HOW COMMISSIONS ARE EARNED A commission is earned when a referred action qualifies — defined as [e.g. the customer's payment clears and the [N]-day refund window has passed]. Until then, commissions appear as "pending" in your dashboard. 2. PAYOUT THRESHOLD We pay out once your approved balance reaches [$AMOUNT]. Balances below the threshold roll over to the next payout cycle until the threshold is met. 3. PAYOUT SCHEDULE (CADENCE) - We process payouts [monthly], on the [Nth] of each month. - We pay [net-30]: commissions earned in a given month are paid [30] days after that month closes, allowing for the refund window. - If a payout date falls on a weekend or holiday, we process on the next business day. 4. PAYOUT METHODS We support: [PayPal / bank transfer (ACH/SEPA) / Wise / store credit]. You select your method and enter your details in the dashboard. You are responsible for keeping your payout details accurate and up to date. 5. TAX FORMS & COMPLIANCE - Before your first payout, you must complete the required tax form: [W-9 for US persons / W-8BEN for non-US persons / local equivalent]. - You are responsible for any taxes owed on commissions you earn. - We may withhold payment until valid tax documentation is on file. 6. CURRENCY & FEES - Commissions are calculated and paid in [CURRENCY]. - [We cover / You cover] standard payout transaction fees. Any currency- conversion or intermediary-bank fees are [borne by you]. 7. HOLDBACKS, REVERSALS & CLAWBACKS - Commissions tied to refunded, charged-back, canceled, or fraudulent orders are reversed and deducted from your balance, even if already approved. - We may hold a payout pending review if we detect unusual or suspicious activity, and will tell you why. 8. INACTIVE OR UNCLAIMED BALANCES If your account is closed or inactive for [N] months with a balance below the threshold, that balance may be forfeited where permitted by law. We'll give you [N] days' notice before any forfeiture. 9. DISPUTES If you believe a payout is incorrect, contact [AFFILIATE-EMAIL] within [N] days of the payout date with your account details and the amounts in question. We'll investigate and respond within [N] business days. 10. CHANGES TO THIS POLICY We may update this policy. Material changes take effect [N] days after we post or notify you, and apply to commissions earned after the effective date. Questions about a payment? Contact [AFFILIATE-EMAIL].
How to use this template
- Fill in every placeholder with your real threshold, cadence, methods, and timelines — vague payout terms erode trust fast.
- Set your threshold to balance fee efficiency against partner satisfaction; $25–$100 is a common range.
- Tie the "earned" definition (section 1) to your refund window so you're never paying out on orders that later get refunded.
- Require tax forms before the first payout, and say so here, so payments never stall on missing paperwork.
- Publish this policy on your program page and link to it from your terms and welcome email so partners can always find it.
Frequently asked questions
How often should I pay affiliates?+
Monthly is the most common cadence and the easiest to administer. Pairing it with net-30 terms (paying 30 days after the month closes) gives the refund window time to elapse, so you avoid clawing back commissions on orders that get refunded.
Why hold commissions as 'pending' before paying?+
To cover the refund and chargeback window. If you pay the moment a sale lands and the customer refunds a week later, you're chasing the affiliate to return money. Holding commissions until the return window closes protects both sides.
What happens to a balance below the payout threshold?+
It rolls over to the next cycle and keeps accumulating until it crosses the threshold, then it's paid on the next scheduled payout. Spell this out in section 2 so partners aren't surprised when a small balance doesn't pay immediately.
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