Marketing Terms

Payment Threshold

Definition

The minimum accumulated commission an affiliate must earn to trigger payment from an affiliate program.

Information

Payment thresholds involve two factors:

(1) minimum payment – $25, $50, $100, etc.
(2) time interval – monthly, quarterly, etc.

At the specified time interval, accumulated commissions for each affiliate are compared to the minimum payment level. If an affiliate fails to meet the minimum payment level, the amount is rolled over to the next period. This continues until the accumulated commission is greater than the minimum payment level. When this happens, payment is sent a certain amount of days after the end of the period, as specified in the contract.

see also: Affiliate Marketing Tools

Related Terms

affiliate marketing

view all terms in the Affiliate Marketing glossary or all terms in the Digital Marketing glossary