Creating a successful affiliate program can be one of the most effective strategies for growing your SaaS business. Not only does it allow you to leverage the creativity and networks of others, but you also only pay for results. Here are four strategies to build the most powerful SaaS affiliate program ever, based on years of experience and the success of hundreds of SaaS clients.
1. Offer an Attractive Payout Strategy
When potential affiliates evaluate different programs, they often compare payout structures to decide who to promote. A standout example comes from Clay Collins, who offered a 30% lifetime value payout. This aggressive strategy can be very enticing for affiliates. Here’s how you can structure your payout:
- Percentage of Revenue: The industry average for SaaS is about 25%. However, offering a bit more can make your program more attractive.
- Pixel Duration: This is the time a potential customer is tracked after being referred by an affiliate. While 90 days is standard, extending it to 120 days can be more appealing.
- Understand Your Limits: Determine what percentage of your customer’s lifetime value you can afford to pay out. Most SaaS businesses can afford about a third of this value to acquire new customers.
A well-structured payout plan can ensure affiliates are motivated to promote your product vigorously.
2. Create a Bulletproof Offer
A common mistake is not providing enough information about the affiliate program. Affiliates need to be convinced just like customers. Here’s how to craft an irresistible offer:
- Dedicated Affiliate Page: Treat this like a sales page with compelling headlines, copy, case studies, and proofs of past affiliate success.
- Detailed Information: Provide clear earning potential, average earnings per click, and case studies to demonstrate the success of previous affiliates.
- Reduce Risk: Make it clear how much money affiliates can potentially make, reducing uncertainty and making the decision easier for them.
For example, when Brennan asked for affiliates, he provided a detailed Google Doc with all necessary information and historical data, making it easy for affiliates to see the potential revenue.
3. Provide Resources to Win
Support your affiliates just like you would support your customers. Many programs fail because they don’t equip their affiliates with the right tools and training. Here’s what you should provide:
- Onboarding Training: Just as you onboard customers, onboard your affiliates with comprehensive training to get them up to speed.
- Marketing Materials: Supply landing page copy, ad copy, social media posts, and other materials that affiliates can use.
- Ongoing Support: Conduct monthly calls, share successful strategies from top affiliates, and provide continuous training to help affiliates grow their own businesses.
Treat your affiliates like team members, investing in their success to ensure they can drive more business to you.
4. Operationalize the Channel
Sustaining an affiliate program requires continuous effort. Here’s how to ensure it remains effective:
- Consistent Management: Assign a dedicated person to manage the affiliate program, ensuring it’s their sole focus.
- Growth Stacking: When a channel works, don’t abandon it for the next big thing. Instead, stack new strategies on top of existing successful ones.
- Regular Updates: Keep optimizing the program, recruiting new affiliates, providing resources, and focusing on incentives.
For instance, a client saw a drop in revenue after shifting focus from partner webinars to Facebook ads. By not stacking strategies, they lost a valuable channel. Ensure you build on successes rather than replacing them.
Conclusion
Building a world-class affiliate program requires a strategic approach. Focus on an attractive payout structure, create a compelling offer, support your affiliates, and ensure continuous management and optimization. By doing so, you can create a powerful engine for growth in your SaaS business.
If you want to dive deeper into building and managing an affiliate program, check out my Strategic Partner Playbook Training. It covers everything from creating a partner network to recruiting, onboarding, and paying out affiliates. Click the link below to get access.