How to compose documents for affiliate payouts?

[Korban]

We are making some payouts to affiliates, and I wonder what kind of docs do I need to save for the company audit purposes.

For example, when doing monthly wire payouts to different webmasters, I need to show the Bank supporting document for each transaction. How should the doc look like?

How does it usually work? You make some kind of invoice or payout document for webmasters? Help please.

[DVTimes]

Originally Posted by Korban

We are making some payouts to affiliates, and I wonder what kind of docs do I need to save for the company audit purposes.

For example, when doing monthly wire payouts to different webmasters, I need to show the Bank supporting document for each transaction. How should the doc look like?

How does it usually work? You make some kind of invoice or payout document for webmasters? Help please.

If its an adult paysite, why not just use ccbill and let them deal with it all.

[Korban]

Originally Posted by DVTimes

If its an adult paysite, why not just use ccbill and let them deal with it all.

Because I am using my own merchant through NetBilling.

[DVTimes]

Originally Posted by Korban

Because I am using my own merchant through NetBilling.

A tip.

Many affiliates now only deal with ccbill sites.

Its worth thinking about as I have seen many websites who ran there own system, went back to ccbill on that reason alone.

[Korban]

Originally Posted by DVTimes

A tip.

Many affiliates now only deal with ccbill sites.

Its worth thinking about as I have seen many websites who ran there own system, went back to ccbill on that reason alone.

That's because they have crap for traffic and promote like 100 sites at the same time, in hopes of hitting CCbill's min payout.

We are dealing with webmasters who can actually send sales.

[Korban]

bump for help

[BigFurry]

I don't think this can be answered unless we know what country you operate in.

Even then, you should primarily consult local accountants and tax advisors.

Anyhow, I think many companies either operate in countries which have lax laws, or they don't care too much.

If you need invoices for the payments you send, it will be quite hard to get invoices from affiliates... a proper solution could be self-billing invoices I believe, which is used by Hilton for affiliate commissions, and LiveJasmin for performer commisions apparently.

Some links, all EU specific:
VAT: self-billing arrangements - Detailed guidance - GOV.UK
VAT invoicing rules - European Commission (self billing is mentioned)
Self-Billing Agreement for UK Travel Agencies - Hilton
Periodical Self-Invoices - Easy Wiki - Jasmin Wiki

I'm not too knowledgeable about US stuff, but some sponsors make affiliates fill out W-9 and W-8 forms. More common in mainstream than adult though.

[BoomBoomBenoit]

Originally Posted by BigFurry

I don't think this can be answered unless we know what country you operate in.

Even then, you should primarily consult local accountants and tax advisors.

Anyhow, I think many companies either operate in countries which have lax laws, or they don't care too much.

If you need invoices for the payments you send, it will be quite hard to get invoices from affiliates... a proper solution could be self-billing invoices I believe, which is used by Hilton for affiliate commissions, and LiveJasmin for performer commisions apparently.

Some links, all EU specific:
VAT: self-billing arrangements - Detailed guidance - GOV.UK
VAT invoicing rules - European Commission (self billing is mentioned)
Self-Billing Agreement for UK Travel Agencies - Hilton
Periodical Self-Invoices - Easy Wiki - Jasmin Wiki

I'm not too knowledgeable about US stuff, but some sponsors make affiliates fill out W-9 and W-8 forms. More common in mainstream than adult though.

The answers will change depending on what country you're in. If you're looking for help, you can always connect with a company like webmasterchecks.com - they'll invoice you for the payments so it's basically like a big marketing expenditure for you while they handle the W-9 forms and stuff.

Either way you'll want an accountant to review and consult. Webmaster payments can exceed $10,000 and payments higher than $10k often put you on the radar. Even when you're operating a legitimate affiliate program larger sums of money trigger analysis for money laundering and the patriot act (which watches for terrorism funds etc).

[Barry-xlovecam]

I would ask your accountant in your local jurisdiction (country of domicle [where you do business]).

Your big problem is accounting for your COGS to your local tax jurisdiction. VAT is another headache -- talk to a tax attorney on that one. These records required will resolve any affiliate payment dispute. In the USA you need to keep income tax related records for up to 7 years.

[buck30]

Originally Posted by Korban

We are making some payouts to affiliates, and I wonder what kind of docs do I need to save for the company audit purposes.

For example, when doing monthly wire payouts to different webmasters, I need to show the Bank supporting document for each transaction. How should the doc look like?

How does it usually work? You make some kind of invoice or payout document for webmasters? Help please.

Save the same type of docs you save for everyday operations? an expense is an expense. hire an accountant, just your proof of wire is proof of expense. if you are saying you need to show the bank supporting documentation in order to send the wire,that should not be necessary, banks do not care why you are sending a wire, unless a large amount, in US over 10K.

[buck30]

Originally Posted by BoomBoomBenoit

The answers will change depending on what country you're in. If you're looking for help, you can always connect with a company like webmasterchecks.com - they'll invoice you for the payments so it's basically like a big marketing expenditure for you while they handle the W-9 forms and stuff.

Either way you'll want an accountant to review and consult. Webmaster payments can exceed $10,000 and payments higher than $10k often put you on the radar. Even when you're operating a legitimate affiliate program larger sums of money trigger analysis for money laundering and the patriot act (which watches for terrorism funds etc).

Bump webmasterchecks.com

[astronaut x]

Why don't you ask netbilling? After all, they were voted the best.

Or mabe the best can't be bothered?

No offense Mitch.. I just can't help myself sometimes.

[MaxPSC]

Originally Posted by Korban

We are making some payouts to affiliates, and I wonder what kind of docs do I need to save for the company audit purposes.

For example, when doing monthly wire payouts to different webmasters, I need to show the Bank supporting document for each transaction. How should the doc look like?

How does it usually work? You make some kind of invoice or payout document for webmasters? Help please.

Contact me I may be able to help you.

[email protected]

Max

[NETbilling]

Originally Posted by Korban

We are making some payouts to affiliates, and I wonder what kind of docs do I need to save for the company audit purposes.

For example, when doing monthly wire payouts to different webmasters, I need to show the Bank supporting document for each transaction. How should the doc look like?

How does it usually work? You make some kind of invoice or payout document for webmasters? Help please.

Webmaster checks is a good service to handle your affiliate payouts and can advise on any docs you need to keep as can your accountant.

Thanks, Mitch

[CPA-Rush]

Originally Posted by Korban

That's because they have crap for traffic and promote like 100 sites at the same time, in hopes of hitting CCbill's min payout.

We are dealing with webmasters who can actually send sales.