Subject: Affiliate papyal masspay fees
posted Tuesday, July 15th 2008 @ 9:26 AM
So I am now running numbers on profitability and expenses for my affilite program.
So far I know how much paypal charges fee wise but I do not know how this fee is counted and actually works with the mass pay system.
Paypal charges me 3.4% per transfer which means they take 3,4% when I make the sale and then another 3.4% when I am doing the mass payment.
However who is the bearer of that transaction cost and how has the igroop system taken this into consideration?
Example:
My affiliate get a sale for a simple one time commision of a product costing 65usd.
The affiliate take is 70% commission = 45,5usd from 65 usd.
So the money is transfered into my paypal 65-3,4%=62,79usd
Then the mass payment goes out so the 45,5usd are to be transfered.
Do I as the payer/employee pay the transaction fee of the additional 3,4% or does the affiliate pay this?
Depending on how this work practicly I could either set the commision level at 70% and I pay the transaction fee meaning when I am paying the 45,5usd to the affiliate through the mass pay function the 3.4% fee is drawn from my paypal account.
However if it is drawn from the affiliate it would mean I would need to set his commision level to 73,4% in order to effectivly give him the 70% commision.
Does Igroops generationg of the mass pay file reflect the reality meaning that when I set it up so the affiliate gets the 45,5usd that is what he will receive in his paypal account?
This was a bit long winded however I hope you understand my question Bo.
-Tobias Fransson, Autoresponder University | 
