Starting an affiliate program can be one of the most cost-effective ways to grow your SaaS business. Unlike paid advertising where you pay upfront with uncertain returns, affiliate marketing lets you pay only for actual results—new customers who convert and stick around.
This comprehensive guide walks you through everything you need to know about launching an affiliate program that drives sustainable growth for your SaaS.
What Is an Affiliate Program?
An affiliate program is a partnership arrangement where you reward third parties (affiliates) for driving customers to your business. When someone clicks an affiliate's unique tracking link and becomes a paying customer, the affiliate earns a commission.
For SaaS businesses specifically, this model works exceptionally well because:
- Recurring revenue means recurring commissions — You can offer ongoing payouts that keep affiliates motivated long-term
- Digital products have high margins — You can afford generous commission rates without hurting profitability
- Attribution is straightforward — Software makes it easy to track who referred whom
If you're new to the concept, our guide on what affiliate marketing is covers the fundamentals in depth.
Is Your SaaS Ready for an Affiliate Program?
Before diving in, honestly assess whether your business is ready. Launching too early wastes resources and can damage relationships with potential affiliates.
Signs you're ready:
- Product-market fit is established — You have customers who love your product and would recommend it organically
- Conversion funnel is optimized — Your signup flow, onboarding, and retention are working well
- Unit economics are healthy — You know your CAC, LTV, and can afford to pay commissions
- You can support affiliates — You have bandwidth to answer questions and provide materials
Signs you should wait:
- High churn rates (affiliates will churn too)
- Unclear ideal customer profile
- Major product pivots planned
- No capacity to manage the program
For a detailed checklist, see our post on signs your SaaS is ready for an affiliate program.
Choosing Your Commission Structure
Your commission structure directly impacts affiliate motivation and your profitability. Get this wrong, and you'll either attract low-quality affiliates or hemorrhage money.
Recurring vs. One-Time Commissions
The fundamental choice for SaaS is between:
Recurring commissions: Affiliates earn a percentage of the customer's payment every billing cycle (monthly or annually) for as long as the customer remains active.
- Pros: Attracts serious affiliates, aligns incentives with retention
- Cons: Complex to manage, higher total payout over customer lifetime
One-time commissions: Affiliates earn a flat fee or percentage of the first payment only.
- Pros: Simple, predictable costs, works well for high-ticket products
- Cons: Less motivating for ongoing promotion, affiliates may churn
Most successful SaaS affiliate programs use recurring commissions. Learn more in our recurring vs. one-time commissions deep dive.
Setting Commission Rates
Typical SaaS affiliate commission rates range from 15% to 30% of revenue. To determine your rate:
- Calculate your customer acquisition cost (CAC) from other channels
- Determine your target affiliate CAC — Usually 50-80% of your paid acquisition CAC
- Work backwards to find a sustainable commission rate
If your average customer pays $100/month and stays for 24 months ($2,400 LTV), and your paid CAC is $600, you might target an affiliate CAC of $400. A 20% recurring commission would cost about $480 over the customer lifetime—close to your target.
For detailed guidance, read how to set affiliate commission rates that actually work.
Advanced Structures
As your program matures, consider:
- Tiered commissions — Higher rates for top performers (learn more)
- Bonuses — One-time payouts for hitting milestones
- Extended cookie windows — Longer tracking periods for better attribution (cookie duration guide)
Building Your Affiliate Program Infrastructure
Choosing Your Platform
You have three main options:
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Purpose-built affiliate software (recommended) — Tools like PromoteKit, designed specifically for SaaS, integrate with your existing Stripe setup and handle tracking, attribution, and payouts automatically.
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Affiliate networks — Platforms like ShareASale or CJ Affiliate provide access to established affiliates but take larger cuts and offer less control.
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Build in-house — Maximum control but significant development and maintenance overhead. Rarely worth it unless you have unique requirements.
For Stripe users, see our comparison of best affiliate software for Stripe merchants.
Essential Features to Look For
When evaluating affiliate platforms, prioritize:
- Accurate tracking — First-party cookies, reliable attribution
- Stripe integration — Automatic conversion tracking when payments occur
- Flexible commissions — Support for recurring, tiered, and custom structures
- Affiliate portal — Self-service dashboard for your affiliates
- Payout automation — Scheduled payments via PayPal, Stripe, or bank transfer
- Fraud detection — Tools to identify suspicious activity (affiliate fraud prevention)
Recruiting Quality Affiliates
An affiliate program is only as good as its affiliates. The best programs focus on quality over quantity.
Where to Find Affiliates
Existing customers are often your best affiliates. They already use and love your product. Reach out to power users, active community members, and anyone who's referred others organically.
Content creators in your niche—YouTubers, bloggers, podcasters, newsletter writers—can drive significant traffic if your product aligns with their audience.
Complementary businesses that serve your target customers but don't compete directly make excellent partners.
For a comprehensive list, see 15 places to find affiliates for your SaaS and our original guide on how to find affiliates for your SaaS.
Your Affiliate Program Page
You need a dedicated page explaining your program. This page should:
- Clearly state your commission rates and structure
- Explain how tracking and payouts work
- Highlight what makes your product worth promoting
- Include social proof (customer logos, testimonials, metrics)
- Make signup simple
See our guide on how to write an affiliate program page that converts.
Vetting Applicants
Not every applicant will be a good fit. Look for:
- Relevant audience that matches your ICP
- Quality content and professional presence
- Genuine interest in your product
- No history of spam or black-hat tactics
Our affiliate vetting and fraud prevention guide covers red flags to watch for.
Onboarding and Supporting Affiliates
Great onboarding sets affiliates up for success and reduces support burden.
Welcome Sequence
When an affiliate joins:
- Send a welcome email with login credentials and key links
- Provide a getting started guide covering the basics
- Share marketing assets — Banners, copy, product screenshots
- Schedule a kickoff call for high-potential affiliates
- Set expectations for payout timing and program rules
Marketing Materials
Create a library of resources affiliates can use:
- Banner ads in common sizes (300x250, 728x90, 160x600)
- Email swipe copy they can customize
- Social media templates with images
- Product screenshots and logos
- Case studies and testimonials they can reference
- Demo videos explaining key features
For detailed guidance, see creating affiliate marketing assets that drive sales.
Ongoing Communication
Keep affiliates engaged with:
- Monthly newsletters with product updates and tips
- New asset announcements when you create fresh materials
- Performance reports showing their progress
- Exclusive promotions they can offer their audiences
- Recognition for top performers
Read more in our affiliate onboarding guide.
Managing Payouts
Payout management can become complex as your program scales.
Payout Logistics
Key decisions to make:
- Payout frequency — Monthly is standard; some programs do bi-weekly or quarterly
- Minimum threshold — Typically $50-$100 to avoid micro-transactions
- Payment methods — PayPal is most common; consider Wise or direct deposit for international affiliates
- Currency handling — Decide how to handle currency conversion for global affiliates
Handling Refunds and Chargebacks
Your terms should clearly state:
- Commissions are reversed if the customer refunds within X days
- Chargebacks result in commission clawback
- Fraudulent referrals forfeit all commissions
Affiliate software like PromoteKit handles this automatically by syncing with your Stripe account.
For more, see how to handle affiliate payouts without the headache.
Measuring Success
Track these metrics to gauge program health:
Key Performance Indicators
- Revenue from affiliates — Total and as percentage of overall revenue
- Number of active affiliates — Those who've driven at least one conversion recently
- Conversion rate — Percentage of referred visitors who become customers
- Average order value — Compare to non-affiliate customers
- Customer quality — Retention and LTV of affiliate-referred customers
- Effective commission rate — Total commissions paid divided by revenue generated
Common Benchmarks
Healthy SaaS affiliate programs typically see:
- 10-25% of revenue from affiliates (mature programs)
- 2-5% conversion rate on affiliate traffic
- Similar or better retention vs. other channels
- 80/20 distribution (20% of affiliates drive 80% of results)
Common Mistakes to Avoid
Setting commissions too low — If your rates aren't competitive, quality affiliates will promote competitors instead.
Ignoring affiliate experience — A clunky portal and slow support drive affiliates away.
Not vetting affiliates — One bad affiliate using spam tactics can damage your brand.
Forgetting about activation — Many affiliates sign up but never promote. Proactive onboarding and engagement are essential.
Treating it as passive income — Successful programs require ongoing management and optimization.
Getting Started Today
Ready to launch? Here's your action plan:
- Validate readiness — Confirm your product and unit economics support an affiliate program
- Define your structure — Set commission rates, cookie duration, and payout terms
- Choose your platform — PromoteKit makes it easy for Stripe users
- Create your program page — Explain the opportunity and make signup simple
- Recruit initial affiliates — Start with customers and your professional network
- Onboard and support — Set affiliates up for success with materials and guidance
- Monitor and optimize — Track KPIs and iterate on what's working
An affiliate program won't transform your business overnight, but with consistent effort, it can become one of your most valuable and cost-effective growth channels.