How to Build a SaaS Affiliate Marketing Program (4 Examples)

Owning a Software as a Service (SaaS) company is like owning any other business. You have your product, and you need to sell it. However, you may be wondering how to promote your offerings and grow your profit.

This is where affiliate marketing comes in. Creating a successful affiliate program can help you generate extra revenue and scale your business. Plus, costs are minimal, and you can reallocate the saved resources elsewhere.

In this post, we'll discuss the benefits of starting an affiliate program for your SaaS business. Then, we'll look at 4 examples of affiliate marketing done well. Let's get started!

The Benefits of Starting an Affiliate Program for Your SaaS Company

Starting an affiliate program can be a good move for a SaaS company. It comes with minimal costs and offers plenty of opportunities to promote new products.

Content creators can help you drive revenue by recommending your products to their audiences. You can then pay them a commission on every sale made through their affiliate links.

This model can be more effective than traditional advertising. In fact, a study by Forrester Consulting shows that companies with affiliate programs grow twice as fast.

If you have a WordPress website, you can use our Easy Affiliate plugin to create your very own self-hosted affiliate program:

This tool enables you to easily recruit and manage affiliates. You'll also have access to real-time reports on your program, email marketing, one-click payouts, and more.

Building the Best SaaS Affiliate Marketing Program: A Guide for Small Business Owners

Your go-to streaming service or that app keeping your tasks in check? Chances are, that is a SaaS product.

SaaS (Software as a Service) stands out for its scalability and subscription-based model. It's software you use over the internet, paying as you go, usually monthly or annually.

For small business owners, this means a steady revenue stream. But how do you amplify your reach and sales?

The Role of Affiliate Marketing

Think of affiliate marketing as your business's best friend.

It's all about teaming up with folks who've got a solid online presence and a knack for promotion. They show off your SaaS to their audience, and in return, you give them a slice of the pie for every sale they help make.

It's a win-win – you get more customers, and they get rewarded for their efforts.

Step 1: Define Your Objectives

Before you leap into setting up your program, clarify your goals. Are you aiming for more sign-ups, increased brand awareness, or something else? Your objectives will shape your program's structure, from commission rates to affiliate recruitment.

Once your objectives are crystal clear, you can tailor every aspect of your affiliate program to align with these goals.

This includes:

• Setting the right commission rates,
• Choosing your affiliates carefully, and
• Even deciding on the type of content you want them to produce.

Remember, a well-defined objective not only sets the direction but also motivates your affiliates by giving them a clear target to aim for.

Step 2: Competitive Commission Rates

Your commission rates need to be appealing yet sustainable. Research what similar SaaS providers offer. A balance is key – too low, and you won't attract serious affiliates; too high, and you might strain your finances.

Finding the sweet spot for your commission rates is more of an art than a science. It's about offering enough to entice affiliates while keeping your profit margins healthy. Here's how to approach it:

• Market Research: Start by looking at what similar SaaS companies are offering. For instance, if you're in the project management space, Basecamp provides a flat fee for each referral, which could be a benchmark. Tools like Commission Junction or Impact can give you insights into standard rates in your niche.
  
• Tiered Commissions: Consider a tiered structure to reward top-performing affiliates more generously. For example, you could offer a 10% commission for up to 10 sales a month, 15% for 11-20 sales, and 20% for 21 sales and above. This not only motivates affiliates to sell more but also keeps your costs manageable.
  
• Lifetime Value (LTV) Consideration: Calculate the average LTV of your customers. This can guide how much you're willing to pay for a new customer acquisition. If your SaaS has a high LTV, you might justify higher initial payouts to affiliates.

Keep an eye on your program's performance and the competitive landscape. Be ready to adjust your rates if you find your program isn't attracting enough affiliates or if affiliates aren't generating the expected results.

A flexible approach ensures you remain competitive and cost-effective.

Step 3: Choose the Right Affiliates

Zeroing in on Your Ideal Partners

The affiliates you choose are essentially your brand ambassadors. Selecting the right ones can make a significant difference in reaching your target audience effectively.

Here's how to ensure you're partnering with the best:

• Identify Your Audience: First, get a clear picture of who your ideal customer is. If your SaaS caters to small businesses, you'll want affiliates who have a strong presence in small business forums, social media groups, or run relevant blogs or YouTube channels.
  
• Quality Content Creators: Look for affiliates who produce quality content that resonates with your target audience. For example, if you offer a digital marketing tool, partnering with an affiliate who creates in-depth tutorials or reviews on digital marketing tools can be beneficial.
  
• Use Affiliate Networks: Platforms like ShareASale or Awin can help you discover affiliates with proven track records in your industry. These platforms provide performance metrics, making it easier to choose affiliates who align with your brand's values and objectives.

Building strong relationships with your affiliates starts with personalized outreach, emphasizing the mutual benefits and relevance of your SaaS to their audience.

Providing trial access, like Grammarly does with its premium version for affiliates, can empower them to authentically advocate for your product.

It's crucial to set clear guidelines from the get-go, ensuring your affiliates know what's expected in terms of promotion and brand alignment. Offering consistent support, from marketing materials to regular updates, lays the foundation for a collaborative and enduring partnership.

Step 4: Equip Your Affiliates

Arm Them with the Right Tools

The success of your affiliate program is directly tied to how well-equipped your affiliates are. This means providing more than just links; it's about giving them a comprehensive toolkit that empowers them to promote your SaaS effectively.

• Detailed Product Information: Create a resource hub or an affiliate portal with in-depth guides, FAQs, and product updates. Easy Affiliate excels here by offering an intuitive dashboard where affiliates can access promotional materials and product information seamlessly, making it simpler for them to understand and promote your offerings accurately.
  
• Creative Assets: Supply a variety of high-quality creative materials such as banners, infographics, and video content that affiliates can use in their promotions. With Easy Affiliate, you can easily distribute these assets, ensuring that your affiliates always have access to the latest and most effective promotional tools.
  
• Training and Education: Offer webinars, tutorials, or one-on-one sessions to educate your affiliates on how best to use and promote your product. This not only enhances their effectiveness but also demonstrates your commitment to their success.

Step 5: Harness the Power of Affiliate Tracking Software

Precision Tracking

To optimize your affiliate program's performance, it's essential to have a granular understanding of how each affiliate contributes to your goals. Implementing a robust affiliate tracking system allows you to monitor key metrics such as clicks, conversions, and sales, providing insights into what's working and what isn't.

Easy Affiliate: A Case in Point

Easy Affiliate stands out for its user-friendly interface and comprehensive tracking capabilities, making it an ideal choice for SaaS businesses. Here's how you can leverage its features:

• Real-Time Monitoring: Easy Affiliate offers real-time tracking of affiliate activities. This means you can see the impact of affiliate promotions as they happen, allowing for timely adjustments and feedback.
  
• Integration with Your SaaS: Easy Affiliate can be seamlessly integrated into your SaaS platform, ensuring that every referral and conversion is accurately tracked. This integration is crucial for SaaS businesses where tracking can become complex due to recurring subscriptions and upgrades.
  
• Detailed Reporting: With Easy Affiliate, you get detailed reports that break down affiliate performance by various metrics. This data is invaluable for understanding which affiliates are driving the most value and why.

Making the Most of Tracking Software

• Set Clear KPIs: Define clear Key Performance Indicators (KPIs) such as conversion rate, average order value, and customer lifetime value. This helps in evaluating the effectiveness of your affiliates and the overall health of your affiliate program.
  
• Affiliate Segmentation: Use the data from your tracking software to segment your affiliates based on performance. This enables you to tailor your communication, rewards, and support to different segments, optimizing the performance across your affiliate network.
  
• Feedback Loop: Utilize the insights gained from tracking software to provide constructive feedback to your affiliates. Share what types of content, promotion strategies, and product pitches are yielding the best results. Platforms like Easy Affiliate facilitate easy communication for such feedback sharing.

Take inspiration from successful SaaS companies like Shopify, which uses detailed affiliate tracking to reward top performers and optimize its affiliate marketing strategies continuously.

By employing a system like Easy Affiliate, you can replicate such success, ensuring every affiliate's contribution is measured, rewarded, and optimized for better performance.

Step 6: Foster Success Through Clear Communication

The Cornerstone of Collaboration

Effective communication forms the backbone of any successful affiliate program. Keeping your affiliates informed and engaged is not just about sending out updates; it's about building a relationship that is beneficial for both parties.

Communication strategies you can implement:

• Regular Updates: Establish a regular schedule for updates. This could be a weekly email newsletter that highlights product updates, shares best-performing content, and provides market insights. Tools like ActiveCampaign or Constant Contact can automate this process, ensuring consistency.
  
• Incentive Programs: Recognize and reward your top-performing affiliates. This could be through a tiered commission structure, bonus payouts for reaching certain milestones, or even public recognition on your platforms. For instance, Amazon’s affiliate program offers higher commission rates for affiliates who achieve specific sales thresholds.
  
• Prompt Payments: Use a reliable payment system to ensure affiliates are paid on time, every time. Consider platforms like PayPal or Stripe for easy, hassle-free payments. Easy Affiliate integrates with these payment gateways, automating the process and ensuring transparency and reliability.
  
• Open Channels for Feedback: Create an environment where affiliates feel comfortable sharing their insights and suggestions. This could be through a dedicated Slack channel, monthly Zoom calls, or a simple suggestion box on your affiliate dashboard.

Take a page from Buffer, a social media management tool. They exemplify excellent affiliate communication. They offer comprehensive support materials, maintain open lines of communication for feedback, and run a transparent affiliate program that keeps partners informed and motivated.

4 Successful SaaS Affiliate Marketing Examples

Before you set up your affiliate program, it's helpful to look at some successful examples. Let's look at a few popular SaaS affiliate marketing programs.

1. Canva

Canva is a drag-and-drop graphic design tool that helps users create professional images and documents. It also offers templates for different types of marketing material, including social media posts, logos, and presentations.

Canva's affiliate program has over 8,000 partners. Affiliates can earn up to $36 for each new subscriber that signs up through their referral links. If a user takes out a monthly subscription, the affiliate gets a commission for the first two months of that membership. 

Additionally, the company offers regular and flexible payment options. It also uses cookie-based tracking software so that affiliates can be credited within 30 days of the first click on a referral link.

Key takeaway: Offer a generous commission on new signups. This can help incentivize your affiliates to promote your product more frequently.

2. All in One SEO

All in One SEO (AIOSEO) is one of the most popular SEO plugins on WordPress. Used by over three million professionals, the tool offers on-page optimization, smart sitemaps, schema support, webmaster tools, and more.

Much like with Canva, AIOSEO's commission rates for affiliates are very generous. Every sale is worth 20%, whether for a basic or an elite license. The affiliate will earn at least $9.90 on a single referral, and up to $83.80 per sale.

Moreover, the program offers ready-made banners and marketing material for affiliates. This can help them save time and make more sales.

Key takeaway: Offering ready-made banners can help you attract potential partners. You could even use Canva to create them!

3. HubSpot

HubSpot is one of the leading names in the digital marketing industry. The company offers a range of customer relationship management (CMR) tools for businesses.

HubSpot's affiliate program offers some unique incentives. For instance, all affiliates start with a 30% recurring commission rate for up to one year. The program has three tiers that offer more rewards as affiliates refer more customers. It also offers a 180-day cookie window to account for the longer B2B sales cycle so leads have more time to convert into paying customers.

Key takeaway: Consider offering other performance-based benefits to incentivize affiliates to increase their performance and grow in your program. Additionally, a generous cookie window can help make your program more popular since it maximizes affiliates’ earning potential.

4. Smash Balloon

Smash balloon is a WordPress plugin for displaying social media feeds on websites. With over 1.75 million users, it offers options for Facebook, Instagram, Twitter, YouTube, and more.

Smash Balloon's affiliate program offers a standard 20% commission rate on each sale. Affiliates can earn up to $119.60 on a single purchase. This amount can be higher if the customer goes on to purchase multiple plugins.

The cookie window is 30 days. It also offers a range of banners and marketing materials.

Key takeaway: If you have more than one product, try to offer attractive commission rates on multiple purchases made by the same user. This can help you make more sales.

Conclusion

If you sell software and digital tools, an affiliate marketing program can help boost your profits. By outsourcing your sales and marketing to content creators and influencers, you can free up a lot of time and resources.

The road to building a successful SaaS affiliate program is paved with opportunities for growth, community, and collaboration. By taking these actionable steps, you're not just setting up a program; you're laying the foundation for a thriving network of advocates passionate about propelling your product forward.

Remember, the essence of a great affiliate program lies in mutual benefit and sustained partnerships. As you embark on this journey, keep your affiliates' success as pivotal as your own.

Your business – and indeed, your bottom line – is poised for remarkable growth.

Ready to take the plunge? The world of SaaS affiliate marketing awaits, with endless possibilities for those willing to navigate it with foresight, strategy, and a spirit of collaboration.

Do you have any questions about SaaS affiliate marketing programs? Let us know in the comments section!

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