What is a dynamic payout? Dynamic payouts are payouts that change based upon changing inputs. Changes may include different in-funnel events, different touchpoints, or a tiered payout structure. Using a dynamic payout structure helps brands to identify affiliates who bring “real” value and reward them for their efforts, instead of rewarding affiliates based on last click attribution that often “robs” TOFA (Top of Funnel Affiliates) of their due reward.
For example, imagine a conversion flow where a reviewer does an in-depth content review of 2,000 words for brand X’s product. That affiliate or influencer is ranking on page 1 for Brand X Product Review and gets 1,000 views on their post per month. Let’s say that 4% of those views move into the sales funnel and proceed to buy Brand X’s product. Let’s assume that Brand X’s product cost $100 and the affiliate earns 10%, that should be $400 a month for the affiliate. However, due to last click attribution someone like Honey or RetailMeNot is “skimming” that last click and “robbing” the affiliate of their payout, or programmatic advertising captures the buyer a few days later. That’s not a favorable program for the affiliate and they’ll likely move on from Brand X’s program.
Now, let’s say that Brand X implements a dynamic payout structure whereby content/review sites are given priority in the conversion flow. Although the affiliate didn’t “close” the sale, they were one of the first touchpoints in the funnel and are justly due some compensation. With dynamic payouts, the commission can be split between affiliates or rewarded to the affiliate that adds the most value.