Author Topic: Is Becoming an Affiliate Really This Costly? (Read 3629 times)

Crewchief · « **on:** May 18, 2010, 12:13:00 PM »

Jonathan have you really examined the numbers associated with Paypeopleonline.com to see how they impact an affiliate's bottom line?

Is becoming an affiliate really this costly?

Essentially affiliates would be paying $420.00 per year for the purposes of providing their TAX Information and helping you as a vendor with commission clawbacks?

Looking at the Paypeopleonline.com FEE schedule for Affiliates, here's what it is going to come to for people who earn over 250.01 per month through your affiliate programs and through Cash4links.

Let's say they earn exactly $251.00 per month x 12 months = $3012.00

The fee on those earnings would be $35.00 per month, which translates to 15% or $420.00 per year.

That's in addition to paying the IRS on average 23% of their income.

That's also in addition to paying their applicable state taxes.

AND, it's in addition to paying the Affiliate FEES all Affiliates must pay to Paydotcom.com

Jonathan, you may not realize this, but this means, through YOUR affiliate marketing programs and cash4links.com that you run through PAYDOTCOM.com and PAYPEOPLEONLINE.com, affiliates will be forced to pay around 38% to 45% of their earnings based on their state and tax bracket.

Essentially, what I'm asking is, "Can you come up with a better solution than Mike Filsaime's Paypeopleonline.com?

P.S. Although, I love TBS and your other products, as a businessman, those percentages don't add up.

Please respond...

HoneyJo · « **Reply #1 on:** May 18, 2010, 12:45:32 PM »

Quote

addition to paying the IRS on average 23% of their income.

Crewchief,

In regards to the above statement, read my notes on
Re: Register Author but "There are no links currently

Keep good records,

Be Happy!

Joyce

Jonathan Leger · « **Reply #2 on:** May 18, 2010, 12:48:21 PM »

Quote

Let's say they earn exactly $251.00 per month x 12 months = $3012.00

The fee on those earnings would be $35.00 per month, which translates to 15% or $420.00 per year.

You've got the numbers wrong. Here's the fee schedule:

Earnings = Fee
==================
$0.01 - $25.00 = $1.25
$25.01 - $250 = $2.50
$250.01+ = $4.00 + 1%

So in the scenario you give, where an affiliate earned $251 per month, their fee would only be $6.51 per month, or $78.12 per year, not $420. That's 2.5%.

Do I think it's worth that to know that everybody's backside is covered in case of an IRS audit? You betcha.

Jon

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HoneyJo · « **Reply #3 on:** May 18, 2010, 01:11:20 PM »

Quote

Do I think it's worth that

Jon,

You are right again. I want to know that all of my income
is correct and on a 1099. Small price to pay!

And infernal revenue is not a problem either, when income
is reported correctly, along with expenses involved.
Including the Paypeopleonline fees.

Lot's to write off that 1099 legally!

Joyce

jimfurr · « **Reply #4 on:** May 18, 2010, 08:54:24 PM »

I pay all my taxes (but I take all deductions too

,
so, i don't see anything wrong with Jon's
new payment processor.

Should not hurt me anymore than the usual 4.5%
I pay for using the major CC processing.

All just part of doing business.

Tradeview · « **Reply #5 on:** May 20, 2010, 07:20:26 AM »

Then add in PayPal fees and if you have the ATM card add in that fee as well.

I do my own taxes as an "Independant Contractor". I don't see why I should pay yet another online site. Too many middle-men spoils the deal.

Tradeview · « **Reply #6 on:** May 20, 2010, 07:28:12 AM »

Oh, and I couldn't get the video to work at that site anyhow. None of them in fact. I don't have this problem anywhere else.

Jonathan Leger · « **Reply #7 on:** May 20, 2010, 11:25:31 AM »

I'll post my response to a similar thread from another forum here:

Quote

Here's what it does:

You take your PayPal Mass Pay file and put it into PayPeopleOnline. PPO emails all of the affiliates who are not already signed up and asks them to come sign up so they can get paid. The affiliate creates a free PPO account and enters their tax information (name, address, ssn, etc.) into their account. Once it's approved then they get paid.

It's to make sure that vendors have ALL of the tax information they need to keep accurate records for issuing 1099s each year. The problem is that 99.9% of affiliate programs DON'T issue 1099s, and most probably don't even know that they have to (I didn't know until recently).

PPO provides me, the vendor, with all of the 1099s ready to mail out each year. That way I've done what US law says I have to do -- reported all US-based affiliate income to the IRS so that they can collect taxes from the affiliates (if applicable).

I'm getting a little flack over it because people don't want to have to pay the $1 - $35 fees PPO charges the affiliates. But to be charged $35 you would have had to make like $3k in commissions -- so it's just over 1%. All but the biggest affiliates will pay from $1 - $4.

I get that people don't like having to pay those fees, even if they are nominal, and I get what the previous poster said about not wanting to be in a "sales funnel" (though you can always opt-out of any mailings), but PPO provides an incredibly easy way for me to keep track of all of the tax information from all of my affiliates. I have seen no other service that does anything like it, and I need it.

If that's cause to stop promoting the software, hey, I get that -- that's an affiliate's decision. But it would cost me A LOT more to have to pay ALL of my affiliates taxes for them if I got audited and I chose not to keep track of that information just to keep a few affiliates happy.

HoneyJo · « **Reply #8 on:** May 20, 2010, 11:39:56 AM »

Quote

post my response to a similar thread from another forum here

Bravo Jon, Well said, you do need it! Not very costly at all as
some have said.

Few things in life are as easy and as free as we would like them to be.

The diligent who need the funds will write, the others will quit.

Joyce

JL Forums · « **Reply #8 on:** May 20, 2010, 11:39:56 AM »

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saunds · « **Reply #9 on:** May 20, 2010, 12:40:48 PM »

Jon,

My problem is twofold.

One. You only initiated this requirement AFTER our initial agreement, and after some of us have already written the articles and posted them.

Two. We need another option, to be fair. Anyone who gives Mike Filsaime their social security number has got to be either ignorant or insane. No way would I ever give nor recommend anyone give their ssc # to him, with all due respect of course.

Before giving out their SSC# everyone should do a Google search for 'mike filsaime scam' and you will see 11,000 results, read them. You have all been warned.

HoneyJo · « **Reply #10 on:** May 20, 2010, 12:52:08 PM »

Quote

'mike filsaime scam'

saunds, I agree with you about what you said to a point.

But, If you type in Jon's name, my name or your name and
put the word scam behind it you will get Google results.

A lot of marketers use that term scam behind the name as
a keyword in-order to get more hits.

Joyce

Jonathan Leger · « **Reply #11 on:** May 20, 2010, 03:05:51 PM »

Saunds:

I get what you are saying regarding the fees not being announced in advance. I did not know until recently that it was illegal to pay affiates etc without having their tax info on file, so I could not have told you in advance.

Rest assured, though, that at least for this month I will cover all paypopleonline fees by adding the fee amount to your pay. At least you can then make a decision about next month.

But you still need an account because under law I have to have that information to declare to the IRS.

HoneyJo · « **Reply #12 on:** May 20, 2010, 03:24:43 PM »

Quote

cover all paypopleonline fees

Jon, You are an awesome man!

As I've told you before I know your Mother must really
be proud of you.

Joyce

leona · « **Reply #13 on:** May 21, 2010, 11:20:04 AM »

Quote from: Jonathan Leger on May 20, 2010, 03:05:51 PM

Saunds:

I get what you are saying regarding the fees not being announced in advance. I did not know until recently that it was illegal to pay affiates etc without having their tax info on file, so I could not have told you in advance.

Rest assured, though, that at least for this month I will cover all paypopleonline fees by adding the fee amount to your pay. At least you can then make a decision about next month.

But you still need an account because under law I have to have that information to declare to the IRS.

Jon
Integrity could be your middle name. To admit to not knowing is one thing, to set the course to rectify it is another, and to pay --literally- for your mistake is "awesome made awesomer".
Couldn't be more fair in this regard.
Thanks
Leona

Tradeview · « **Reply #14 on:** May 23, 2010, 02:13:30 AM »

Ok, so I took the plunge and signed up for PayPeopleOnline.com. Pain in the {snip: bad language removed} to tell you the truth. None of the videos worked for me.. not a problem I have anywhere else.. plus that signature thing is screwed up.. no image so I can't "sign" anything.

I HOPE THIS THING WORKS BETTER THEN THIS WHEN IT COMES TO BEING PAID. I have my doubts now.

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