4 Pros and Cons of Using Payhip for Affiliate Marketing

But not all platforms make it simple to set up and scale. That’s where Payhip stands out, for better or worse.

If you’re a creator, coach, or small business owner selling ebooks, templates, or even online courses, Payhip gives you a built-in affiliate system right out of the box. But is it really enough to grow a full-on affiliate marketing engine?

Here’s a brutally honest breakdown of the pros and cons of using Payhip for affiliate marketing, straight from people who’ve tested the waters.

Pros of Using Payhip for Affiliate Marketing

1. Built-In Affiliate System, No Extra Apps or Fees

This is the big one. With Payhip, you don’t need third-party software or plugins to start an affiliate program. You literally just flip a switch in your dashboard.

Why that matters:

• Saves you money on tools like Refersion or Tapfiliate

• Perfect for beginners who don’t want tech headaches

• No need to mess with tracking scripts or codes

Someone who just launched their first digital planner on Payhip was able to recruit three friends as affiliates that same day—and had their first external sale by the weekend.

2. Customizable Commission Rates Per Product

Not every product should have the same affiliate payout. Thankfully, Payhip lets you:

• Set a default commission (e.g., 30%)

• Offer higher rates for premium products (e.g., 50% for a $200 course)

• Override commissions manually for VIP affiliates

That flexibility gives you more control over profit margins—especially important when bundling or running promotions.

3. Easy-to-Use Affiliate Dashboard for Partners

Affiliates get their own login to track:

• Clicks

• Sales

• Commissions earned

No messy spreadsheets. No emailing you for updates. That transparency helps keep affiliates motivated and builds trust.

4. Email Collection and Automated Payouts

When someone signs up to be an affiliate, you collect their email right inside Payhip. Plus, the system auto-generates payout reports and tracks what you owe.

You still have to send the payments manually (usually via PayPal), but everything else is tracked automatically.

Cons of Using Payhip for Affiliate Marketing

1. No Affiliate Discovery or Marketplace

This is a big limitation. Unlike platforms like Gumroad or ClickBank, Payhip doesn’t have an affiliate marketplace. That means:

• No built-in exposure to affiliate marketers

• You have to do all the recruiting yourself

• No network effects—your program is private by default

If you don’t already have an audience or a plan to promote your affiliate program, it’s easy to launch and then… hear crickets.

2. Limited Customization for Affiliate Onboarding

There’s no official affiliate portal or customizable landing page to pitch your program. Affiliates get a basic email and a link to their dashboard, but if you want to:

• Share swipe files

• Provide training videos

• Offer promotional assets

…you’ll need to host all that elsewhere (like Notion or Google Drive). It works, but it’s not seamless.

3. Manual Payments Can Be a Chore

Payhip tracks what you owe, but it doesn’t send the money. That means:

• You need to manually send PayPal or Wise transfers

• There’s no Stripe or auto-payout feature yet

• Affiliates might have to wait longer for commissions

If you’re running a large affiliate program with dozens of promoters, this can turn into admin chaos unless you’re super organized.

4. No Advanced Reporting or Tracking

Serious affiliate marketers love tracking. They want to know:

• Where their clicks are coming from

• Which products convert best

• Lifetime value of referrals

Payhip’s reporting is basic—it shows clicks, conversions, and payouts, but lacks detailed analytics or UTM tracking unless you use tools like Bitly or Switchy on your own.

Final Thoughts: Is Payhip Good for Affiliate Marketing?

Here’s the TL;DR:

If you’re just getting started with digital products and want a no-fuss, built-in affiliate system—Payhip is perfect. It’s simple, intuitive, and doesn’t cost extra.

But if you’re planning to scale with 50+ affiliates, run paid campaigns, or do serious influencer partnerships, you’ll likely hit some friction.

Use Payhip if:

• You’re new to affiliate marketing and want a starter setup

• You want to avoid paying for separate software

• You plan to recruit affiliates from your existing audience

Look elsewhere (or supplement) if:

• You need automation for affiliate payouts

• You want detailed performance tracking

• You’re managing a large or growing affiliate team

At the end of the day, Payhip keeps it simple and sometimes that’s exactly what you need to get momentum going. Just know when it’s time to add extra tools or graduate to something more robust.