Configure minimum payout thresholds to optimize payment processing and reduce transaction costs.
Every payout incurs transaction fees — both from Stripe and potentially from bank transfer costs. Processing a $2 payout that costs $0.25 in fees does not make economic sense for you or the affiliate. Minimum thresholds ensure payouts are large enough to justify the processing cost.
Thresholds also reduce administrative overhead. Without a minimum, you might process hundreds of tiny payouts each month, each requiring reconciliation. A reasonable threshold consolidates these into fewer, larger payments that are easier to track and audit.
From the affiliate's perspective, receiving many small payments can be annoying and creates tax reporting complexity. Most affiliates prefer to receive fewer, larger payments. A threshold of $50-$100 is generally well-received across the industry.
Go to Settings > Payouts in your dashboard. Enter your desired minimum payout amount in the "Minimum Threshold" field. This amount is in your program's base currency (USD by default). The threshold applies to all affiliates in the program.
When setting your threshold, consider your commission structure. If your typical commission is $5, a $100 threshold means affiliates need 20 conversions before receiving a payout. If your commission is $50, a $100 threshold only requires 2 conversions.
You can change the threshold at any time. Lowering the threshold may trigger payouts for affiliates who were previously below the minimum. Raising the threshold only affects future payout calculations — it does not claw back payouts that have already been processed.
When an affiliate's balance is below the threshold, their portal shows a clear message: "Your balance of $32.50 has not reached the minimum payout threshold of $50.00." This sets expectations and prevents support inquiries about missing payments.
Affiliates can see their running balance at any time in their portal. The balance increases as new commissions are confirmed and decreases when payouts are processed. The portal also shows a progress indicator toward the threshold.
If an affiliate leaves your program with a balance below the threshold, you have two options: process a final payout for the remaining balance regardless of the threshold, or forfeit the unpaid commissions. We recommend always paying out the final balance as a matter of good faith.
A threshold between $50 and $100 works well for most programs. This range keeps transaction costs reasonable while ensuring affiliates do not have to wait too long between payments. For high-commission programs ($100+ per conversion), you can set the threshold lower since affiliates will reach it quickly.
Document your threshold clearly in your affiliate agreement and on the program signup page. Surprising affiliates with an undisclosed threshold damages trust and can lead to negative reviews of your affiliate program.
Consider offering different thresholds for different tiers of affiliates. Top performers who generate significant volume might qualify for a lower threshold or even on-demand payouts. This flexibility rewards your best affiliates and incentivizes others to perform better.