Affiliate percentage split for $1k/mo SaaS product - What is the right number?

6 replies
Hey guys -

We have a niche SaaS product that charges an $800-$1k/mo recurring subscription fee - we are in the process of setting up an affiliate program to pay out a percentage of that subscription fee every month to our promoters. We already have several influencers in our industry on board, but still need to determine the right payout to incentivize referrals.

1. What is a standard or acceptable split for a recurring revenue stream at this price point?

2. What service do you recommend that we use to facilitate this? Currently looking at:

www.Firstpromoter.com

and

www.refersion.com

Thank you!
#$1k or mo #affiliate #number #percentage #product #saas #split
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  • Profile picture of the author jmosticc22
    There is a variety of factors that go into a decision for this, most affiliates are between 5-30%. It really just should be a number your willing to give up while also making it worth the while of the affiliate. Just simply testing out different numbers could help you.
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  • Profile picture of the author ryanbiddulph
    Testing helps but more than anything, finding the right person by clearly stressing the benefits of being an affiliate ultimate inspires more sign ups.
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  • Profile picture of the author akshay7
    Are there any fixed costs that you incur when you get a client on board ?

    Also, there are 2 options. You can either give a big percentage of the first payment or pay a smaller percentage every month. You have already chosen the recurring.

    You can make a tier based model. 1st referral gives 20% commission. After 3 referrals, percentage becomes 25% etc.Plenty of options really, get creative and test.
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    • Profile picture of the author Skyball
      Thanks for your feedback. We've got fixed costs of roughly $300 per month per user, if they use all of their monthly credits. Most people dont.
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  • Profile picture of the author aarthielumalai
    What are your profits per sale, apart from what you pay the affiliate? Do you spend a lot of time and money onboarding your clients? Affiliate commissions are all over the place. They are anywhere from 10-70% a sale. It depends on what you get out of it.

    This is a high ticket sale, so the affiliate needs to spend considerable resources to bring you a client, so you need to compensate accordingly. On the other hand, you can't run the business at a loss. There is no rule here, only what's right for your business.

    Choose a % that'll keep your affiliate bringing you new sales but you in profit as well. Maybe 20-30% recurring, or 100% for the first month, but nothing later? Some affiliates prefer recurring, but some might like the bulk option. You should probably talk to some of your biggest affiliates and see what they'd prefer.
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  • Profile picture of the author Skyball
    We keep $600-$700 for every sale. Our main affiliates right now are influencers in the industry, so all they have to do is recommend the product and we get lots of signups asking for access. I qualify everyone and do all the selling, so most of the work is done by us.
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