When an advertiser won't pay affiliate balance

[peacock]

Hi All,

Over a period of years I built up a significant balance of affiliate earnings at a UK web host where I am a customer.
Having needed the funds I clicked the "request withdrawal" button but never got a reply.
I chased a few times and eventually got a reply from the owner suggesting the balance was "too high" and he couldn't pay. He asked if he could pay it incrementally.
I said OK but then he "disappeared" again.
This has actually being going on for months / years.
A couple of times my account has needed renewing and I have requested that they pay the invoice via the affiliate balance.
They don't reply but normally do this, but it has meant downtime.
I'm a patient guy and understand only too well cashflow etc, but my family could really do with the money.

Any ideas on how to get the money, or do I have to go the legal route? (Probably small claims court)?

Also a lesson learnt for anyone reading: Don't treat affiliate balances like a bank account. Get payouts as fast as you can!

Thanks for reading!

 

[ian]

Technically speaking if you have commissions, they've had sales, so should have the funds, but clearly they are running negative cashflow. Providing you have all the evidence, and acknowledgements that they cannot pay will help, I'd suggest the small claims court is the way to go, but there are limits you need to be familiar with. Beyond that, you'll need to take legal action.

 

[dazc]

Small claims is slow and you have a fee to pay, then a hearing fee after that . They can also ask for arbitration which delays the matter further (it is pretty much granted by default).

You also have to write up a decent case which takes time and research.

Even then, if they don't play the system, it's gonna be 3 months at least before you get a pay out - assuming they have the money to pay you (which it doesn't sound like they do?).

If they are a rogue you have no chance. There are ways of getting judgements set aside (like saying they never received the summons, and so on).

Best way in this case, in my opinion, is offer some form of payment plan but stop promoting straight away. Promise you'll start again when the balance is paid (although it may be a good idea not to).

 

[amfletchers]

Over a period of years I built up a significant balance of affiliate earnings at a UK web host where I am a customer.

And in future get paid much more often so the potential loss is smaller. Weekly, biweekly or at the most monthly.

 

[scottmccloud]

Best way in this case, in my opinion, is offer some form of payment plan but stop promoting straight away. Promise you'll start again when the balance is paid (although it may be a good idea not to).

Problem is, without a judgement against them, they'll almost certainly renege on this and it's back to square one.

 

[martin-s]

How big is "a significant balance" ?

 

[Admin]

A set of negative, factual reviews by yourself of your experience placed in the right places could be very damaging to their reputation and they would probably wish to avoid that if they realised you were about to do it. I know it doesn't help but I cannot believe you let a balance build up like that, never again hey.

 

[Adam H]

Before rocking the ship make sure you move your own sites / domains away from them. If they are not financially secure enough to pay a fee that they've gained custom from............I wouldnt trust them with my business in fear they could fold at any minute.