Intermediate

Net Terms

Also known as: Net 30, Net 60, Payment Terms

What is Net Terms?

Net Terms define how many days after the end of a period the broker pays a partner. 'Net 30' means payment lands 30 days after the invoicing period closes; 'Net 60' means 60 days.

Key takeaways
  • Net Terms set how many days after a period closes the broker pays
  • Net 30 = paid 30 days after the invoicing period ends; Net 60 = 60 days
  • Long terms force the partner to finance ad spend out of their own pocket
  • For paid media, push for Net-15 or weekly to recycle cash faster
  • Proven low-fraud partners routinely negotiate shorter terms

How it works

Net terms count from the close of the invoicing period, not from the date of each individual conversion. On Net-30, all of a month's earned commission is paid roughly 30 days after that month ends, so a conversion early in the period effectively waits closer to 60 days for cash. Net-60 doubles that lag.

For a performance partner fronting daily ad spend, net terms are a working-capital constraint more than an accounting detail. The longer the term, the more of the broker's growth the partner finances from their own balance sheet, and the harder it is to keep scaling a campaign that is technically profitable but cash-starved. This is why shortening terms, to Net-15, weekly, or even upfront for trusted partners, is one of the highest-leverage things a media buyer can negotiate: it directly raises how fast commission can be recycled back into buying more traffic.

  1. Define the period

    Agree the invoicing window, usually a calendar month, over which commission accrues.

  2. Period closes

    The window ends and the broker totals the commission owed for it.

  3. Term clock starts

    The net-term countdown begins from the period close, not per conversion.

  4. Payment lands

    The broker pays the full period's commission once the net days elapse.

  5. Negotiate shorter

    Trusted partners renegotiate to Net-15 or weekly to improve cash recycling.

Why it matters for partnership: For a media buyer fronting daily ad spend, net terms decide cash flow. Long terms mean the partner finances the broker's growth out of their own pocket for weeks, which can starve a scaling campaign of the cash it needs to keep buying traffic.

Real World Example

An affiliate on Net-30 who spends $20,000 on ads in January does not receive the corresponding commission until the end of February, so they must carry that spend for a month before recouping it.

Net-15 vs Net-30 vs Net-60
Term Cash-flow impact Best suited to
Net-15 Fast recycling of commission into spend Proven paid-media partners
Net-30 Standard, one-month carry Established affiliates
Net-60 Two-month carry, heavy capital drag Broker-favourable / new partners

Pro Tip

For paid-media partners, negotiate Net-15 or weekly payouts. Shorter terms let you recycle commission back into ad spend faster and scale quicker.

Common Pitfalls

Scaling ad spend aggressively on Net-60 terms without the working capital to bridge the two-month gap.

FAQ

Can net terms be negotiated?

Yes. Proven, low-fraud partners routinely negotiate shorter terms or even upfront/weekly payouts.