Affiliate Payout Policy & Process Document

Help me draft an affiliate payout policy document for my Shopify store (Sidekick can produce this as reference text — configuring automation inside my affiliate app or payment platform is outside what it can do):

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 Checklist (for me to configure manually in [AFFILIATE_APP_NAME]):

  Automatic payout triggers
  Payout delay and minimum threshold
  Payment platform connection
  Automated payout confirmation emails


Deliver a complete payout process document I can use internally and share a simplified version with affiliates. Automation itself must be configured inside [AFFILIATE_APP_NAME] — Sidekick doesn’t have access to that app.