Set Up Affiliate Payout Process

Help me design and document the complete affiliate payout process for my Shopify store.

Program Details:

  Affiliate app: [AFFILIATE_APP_NAME]
  Number of active affiliates: [COUNT]
  Average monthly total payout: [TOTAL_AMOUNT]
  Affiliate countries: [COUNTRIES]
  Preferred payout platform: [PAYPAL / WISE / BANK_TRANSFER / STORE_CREDIT / OTHER]


Payout Schedule Design:
Compare and recommend one of the following options based on my affiliate count and cash flow:

  Weekly (best for high earners, higher administrative overhead)
  Bi-weekly (good balance of speed and manageability)
  Monthly on a fixed date (simplest, lowest overhead)
  On-demand with minimum threshold (affiliate requests payment when balance exceeds [AMOUNT])


Recommend: minimum payout balance of [MINIMUM] before payout is triggered
Payout delay: [DAYS] days after order date to account for refund window

Payment Method Comparison:

  PayPal: instant, widely accepted, 2-3% transaction fee, good for international
  Wise: lower fees for international bank transfers (0.5-1%), slower (2-3 days)
  Store credit: zero cost, great for brand advocates, limited to domestic customers
  ACH / bank transfer: lowest fees, US-only, 1-3 business day processing
  Gift cards: simplest, only suitable for affiliates who buy from the store


For each method, give: fee estimate, processing time, and best use case.

Currency Handling:

  Pay in USD vs local currency: which increases affiliate satisfaction and reduces disputes?
  Who absorbs FX conversion fees (store or affiliate)?
  Recommended approach for affiliates in [TOP_3_COUNTRIES]


Tax Compliance Requirements:

  Collect W-9 form (US-based affiliates earning $600 or more per year)
  Collect W-8BEN form (international affiliates)
  IRS Form 1099-NEC reporting for US affiliates over the annual threshold
  EU VAT obligations for European affiliate commissions
  Record retention: keep payout records for [YEARS] years


Payout Dispute Resolution Process:

  Common issues: missing commission, tracking failure, wrong amount, refund clawback question
  Dispute intake: affiliate submits request via [EMAIL / PORTAL TICKET]
  Review window: resolve within [DAYS] business days
  Escalation path if dispute cannot be resolved by first reviewer


Email Templates to Create:

  Payout sent confirmation (with amount, period, and payment method)
  Low balance reminder (balance below minimum threshold)
  Tax document collection request
  Payout dispute acknowledgment and timeline


Automation Setup in [AFFILIATE_APP_NAME]:

  Configure automatic payout triggers
  Set payout delay and minimum threshold
  Connect payment platform API or export
  Automate payout confirmation emails
  Monthly payout summary report for accounting


Deliver a complete payout process document I can use internally and share a simplified version with affiliates.