Question
Let say we have a partner (affiliate) program, and every month we want to send payouts to our registered partners based on a shared revenue. We are based in the USA, and our partners can be in the US or anywhere in the world. How should we distribute those payouts? Should we send 1099 to the US ones? What about the rest of the world ones? Do we need to receive an invoice from the affiliates before we send payment?
Answer
When managing affiliate payouts for your partner program, there are several considerations to keep in mind:
1)Determine the preferred payment method for your affiliate payouts.
2)Establish a regular payment schedule to ensure consistency and reliability for your affiliates.
3)Create a written agreement or contract for affiliates
4)1099 Reporting for US Affiliates
5)To provide invoices before sending payments is a common practice.
