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Payment and models

Payout threshold

Also called payout threshold, minimum payout, payment threshold.

Short answer

The payout threshold is the minimum amount of approved commission an affiliate must have in their balance before a payout can be started. The threshold exists to avoid administration and transaction costs on very small transfers – amounts below it stay put and count towards the next period.

Definition of Payout threshold.

Every payout costs something to process: bank transfer, bookkeeping, checks. A threshold ensures the cost is in reasonable proportion to the amount – without one, a network would have to process transfers of a few kroner every time a new affiliate got their first sale through. For the affiliate, the threshold means small amounts are collected and paid out together. The threshold is a term you should know before joining – it is stated in the program's or network's conditions.

Only approved commission counts towards the threshold. Pending commission – sales the store can still reject – is not included, whatever its size. When the approved balance passes the threshold, the affiliate can send a payout request. Amounts below the threshold do not disappear; they stay put and count the next time commission is earned. After a payout, earning towards the threshold starts again.

When choosing a program, the size of the threshold matters less than how it interacts with the approval time. A low threshold does not help if commission sits as pending for months – and a higher threshold is no problem if your volume passes it every month anyway. Calculate your own expected monthly earnings before you let the threshold decide the choice.

How it is calculated

Months to first payout = payout threshold ÷ approved commission per month

payout threshold
the minimum amount of approved commission before a payout can be requested
approved commission per month
commission actually approved in an average month – not the pending amount

Example

Payout threshold
DKK 100
Approved commission per month
DKK 50
Wait until first payout
2 months

The figure shows how long a new affiliate really waits for the first payout – and why low monthly earnings make the threshold more important than the commission rate.

How it goes wrong

  • 01

    Pending commission does not count

    The balance can show DKK 1,000 while only DKK 300 is approved. It is the approved part that has to pass the threshold – plan by the approval rhythm, not by the total.

  • 02

    The threshold as hostage

    If you stop promoting a program, an amount below the threshold can sit there for a long time. Check what happens to small residual balances before you wind down a partnership.

  • 03

    The wrong basis for comparison

    A low threshold feels attractive but says nothing about how quickly commission is approved or how well the program converts. Calculate months to first payout instead of staring at the threshold alone.

At Affilyflow

Payout threshold in practice

In Affilyflow the balance is calculated from the underlying transactions – not from a column that can be edited by mistake – and the payout amount is determined by the server. A conversion never credits the balance automatically: everything is created as pending, and the store has the program's approval period (30–90 days) to object before the sale is approved automatically. Only then is the amount included in the approved balance.

The payout threshold at Affilyflow is DKK 100 in approved balance. Once it is reached, the balance is paid out automatically on the first banking day of the month – weekends and Danish bank holidays are skipped – or when you press "Pay out now" yourself.

Frequently asked questions

Why do affiliate networks have a payout threshold?

Because every payout costs administration: bank transfer, bookkeeping and checks. A threshold ensures the cost is in proportion to the amount. For the affiliate, it means small amounts are collected and paid out together instead of as many mini-transfers.

What happens to commission below the payout threshold?

It stays in the balance and counts the next time commission is earned. The amount does not disappear – the threshold only postpones the payout until the approved balance is large enough in total.

Does pending commission count towards the payout threshold?

No. Only approved commission counts towards the threshold. Pending commission can still be rejected by the store – for example because of a refund – and can therefore not be paid out until the objection period has expired or the sale has been actively approved.

How do I reach my first payout faster?

Work backwards: the payout threshold divided by your approved commission per month gives the wait in months. Shorten it by choosing programs with a shorter approval time or a better match to your traffic – the threshold itself you can rarely change.

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