Managing my affiliates and their payments (taxes, forms, agreements, refunds, etc.)

[mpbiz]

I'm about to launch my first product ever and I'll be managing my affiliates in-house. I already have several bloggers on board who want to be affiliates and write reviews for me. I'm not sure what forms I need to send them to fill out and fax/email back to me. I'll be sending all of their payments to them via paypal if that matters. What specific tax forms and/or agreements do I need to have them sign?

Also, for those of you who have managed your own programs in the past, how do you deal with sales that get refunded? Do you still credit your affiliates as long as the refund rate isn't something ridiculous aka fraud leads?

And last but not least, I'm probably going to give them cookies that last 365 days. What do you think is fair? These are some of the last things I need to take care of before I can launch, but I want to make sure I get them right the first time.

Thanks for the help and advice and if you would rather chat on skype or AIM feel free to PM me.

 

[iNetGrind]

I can tell you a little about the taxes, You might as well go out and find you a CPA you trust and like. Doing it yourself, -sucks-. W9 forms are needed for US affiliates, international affiliates use a W-8BEN form. Just keep those on hand for later. Your second question there about refunds, no idea, never been an advertiser. 365 day cookie is.. a bit lengthy, I think at most I've given a 30 day cookie.

Cheers mate

 

[cardine]

I'm just about to do the same thing for one of my products, so interested in other peoples responses as well.

Also, for those of you who have managed your own programs in the past, how do you deal with sales that get refunded? Do you still credit your affiliates as long as the refund rate isn't something ridiculous aka fraud leads?

I plan on not paying commission on refunded/fraud sales. If I were to pay for them, then I'd need to compensate by scrubbing/shaving or messing with payouts. I'd rather just be transparent about it. Generally if you are doing CPS you should not pay commission on refunds; on CPA you generally have to (since you are paying on non conversions anyways).

And last but not least, I'm probably going to give them cookies that last 365 days. What do you think is fair? These are some of the last things I need to take care of before I can launch, but I want to make sure I get them right the first time.

That's a long time. I'd go no longer than 30 days.

 

[mpbiz]

I can tell you a little about the taxes, You might as well go out and find you a CPA you trust and like. Doing it yourself, -sucks-. W9 forms are needed for US affiliates, international affiliates use a W-8BEN form. Just keep those on hand for later. Your second question there about refunds, no idea, never been an advertiser. 365 day cookie is.. a bit lengthy, I think at most I've given a 30 day cookie.

Cheers mate

Thanks for the advice. Added you on skype as well.

I'm just about to do the same thing for one of my products, so interested in other peoples responses as well.


I plan on not paying commission on refunded/fraud sales. If I were to pay for them, then I'd need to compensate by scrubbing/shaving or messing with payouts. I'd rather just be transparent about it. Generally if you are doing CPS you should not pay commission on refunds; on CPA you generally have to (since you are paying on non conversions anyways).


That's a long time. I'd go no longer than 30 days.

It's a CPS offer, so looks like I'll be keeping things simple and won't be paying for refunded sales. I'm going to use the 30 day cookie as well.

+rep for both of you

 

[KC-Coop]

We work with a lot of advertisers and a 30 day cookie is pretty common. I definitely agree with them on that as well as the tip to get a GREAT CPA to handle everything. You'll need a W9 for US affiliates and a W8-BEN for International affiliates.

For affiliates who earn over $600 in the year you'll have to issue them a 1099 for tax purposes, which your accountant can do for you. I'd use Quickbooks to keep track of all your payments, unless you can find something that interfaces better with Paypal.

 

[netbert]

In this thread: CPA vs CPA. Fight!

 

[mpbiz]

We work with a lot of advertisers and a 30 day cookie is pretty common. I definitely agree with them on that as well as the tip to get a GREAT CPA to handle everything. You'll need a W9 for US affiliates and a W8-BEN for International affiliates.

For affiliates who earn over $600 in the year you'll have to issue them a 1099 for tax purposes, which your accountant can do for you. I'd use Quickbooks to keep track of all your payments, unless you can find something that interfaces better with Paypal.

Thanks for the advice KC +rep