What affiliate Payout Threshold Should You Use?
What a payout threshold is
A payout threshold is the minimum approved commission balance an affiliate must reach before they can receive a payment. With a $50 threshold, affiliates only get paid once they have at least $50 in approved commissions.
Why programs use a threshold
- Less admin: you are not processing a stream of tiny payments.
- Lower transaction costs: fewer, larger payouts mean fewer payment processor fees.
- Fraud control: the wait gives you time to verify referrals before money goes out.
- Fewer dead accounts: very low-activity affiliates stop consuming time and fees.
Common thresholds in B2B SaaS
$50, the most common
This is the standard for many B2B SaaS programs. It balances accessibility for affiliates against your admin cost.
Example: a 20% commission on a $100/month product pays $20 a month. The affiliate crosses $50 after the third monthly payment from a single referred customer.
$100
Better for larger deal sizes or enterprise SaaS, where individual commissions are higher and you want more verification time.
$25
Good for motivating new affiliates with a faster first payout, especially while you are launching a program and building trust.
How to choose the right threshold
- Average commission size. If the average monthly commission is around $20, a $50 threshold means a first payout in roughly 2 to 3 months, which is reasonable. A $200 threshold at that rate means about 10 months, which is too long and hurts motivation and retention.
- Payment processing costs. If each transaction costs you $2 to $5, keep the threshold high enough that fees stay a small share of the payout. A $50 minimum generally keeps fees under about 10% of the payout.
- Churn rate. With recurring commissions, some referred customers cancel before the affiliate reaches the threshold. Set it so affiliates can realistically get there with 2 to 3 active referrals.
- Affiliate experience. New affiliates are sensitive to how quickly they see money. Too high a threshold delays the first win and kills motivation, while a lower first threshold builds trust and keeps them engaged.
Best practices
- Start at $50, then adjust using your own data on average commission, churn, fees, and affiliate feedback.
- State the threshold clearly in your affiliate terms and onboarding materials.
- Consider a lower first payout, for example $25 the first time and $50 or more after that.
- Review it quarterly. If a lot of affiliates are stalling below the threshold, lower it.
- Pair it with a clear payout schedule so affiliates know exactly when they get paid after hitting the threshold.
How payouts work in Reditus
- You set your payout threshold in your Reditus program settings.
- When an affiliate's approved commission balance reaches that threshold, their payout becomes eligible.
- From there you either process payouts manually, or use automated payouts, available on the Growth plan and above, to pay affiliates on a defined schedule.
For step-by-step payout instructions, see "how to payout affiliates" in the Reditus help center (https://www.getreditus.live/help/en/how-to-payout-affiliates).