Ways Affiliate Programs And IPSPs Make Money From Affiliates?

So i was checking out several PPS programs affiliates terms and conditions today and was suprised at just how many of them have started to raise the 'standard' minimum payouts from what used to be $50 to $100 and in some cases, well over $200 before an affiliate would even get paid.

This got me thinking, is this because they want to save money by raising minimum payout amounts for their affiliates or, is it because they will actually start to make more money for themselves with all the hold-back funds until their affiliates hit minimum payouts?

My gut instinct tells me they are doing this because they earn more money in interest from having to hold the funds until their affiliates make the minimum payout and it also gives the company more liquidity in case they were looking for investments or loans from banks etc.

What do you folks think the reasoning behind raising minimum payouts is?

Also, are there any other methods you can think of that sponsors and IPSPs are using that make them more money from their affiliates without the affiliate even realizing it?

Regards,

Lee

There's also a good chance an non-high producing webmaster might only make a couple of sales and forget about it. The program never has to pay out.

Michael

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Originally Posted by Dzinerbear

There's also a good chance an non-high producing webmaster might only make a couple of sales and forget about it. The program never has to pay out.

Michael

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True enough, i didnt even think of that.

Makes you wonder how many affiliates there are or have been for these large PPS programs that have done that in the past, i would imaging that could amount to a few extra thousands dollars a year at least in 'found' money for program owners and IPSPs.

Regards,

Lee