Net terms state how many days after a billing period closes the brand will pay an affiliate's approved commissions. "Net 30" means payment is due within 30 days after the period ends; "net 15" and "net 7" are shorter versions of the same rule. Net terms are set in the affiliate agreement and are one of the biggest factors in an affiliate's cash flow.
How it works
Three settings combine to decide when commission actually arrives:
- Hold period: how long a conversion stays pending before it is approved.
- Payout cycle: how often approved commissions are grouped into a statement (weekly, biweekly or monthly).
- Net terms: how long after the cycle closes the payment is sent.
A minimum payout threshold can delay payment further if the balance for a period is too small.
Example
Example: a program has a 14-day hold, monthly cycles and net 30. A sale on June 10 is approved on June 24, included in the June statement that closes on June 30, and paid by July 30, about seven weeks after the sale. The same sale under a 7-day hold, weekly cycles and net 7 would be paid within roughly three weeks.
Why it matters
For affiliates, and especially media buyers who pay for traffic upfront, long net terms tie up working capital: on monthly cycles with net 30, you can fund six to eight weeks of ad spend before the first commission arrives. Shorter terms let you reinvest sooner and scale campaigns that work. For brands, net terms balance protection against refunds and fraud with staying attractive to partners who can choose programs that pay faster. Programs with short cycles are reviewed in affiliate programs that pay weekly.
When comparing offers, look at the total delay from sale to payment, not just the net terms on their own.
Related: hold period, commission reversal, affiliate agreement.