Affiliate Rev Share Question

by edyang
2 replies

One of my clients sells cloud-based productivity management software that targets small and mid-sized companies as well as HR departments of larger companies.

We are looking to implement a simple affiliate program with revenue sharing.

The costs of their service are about $7 per user per month.

My questions:

1. Is most revenue sharing perpetual or with a finite end date (say, 3 to 6 months of rev share)?

2. Given the price of $7 per user per month (so that would be $350/month for a company with 50 users, for example), what percentage should we pay out to the affiliate in revenue sharing? Should it start high and go lower, or stay consistent?

3. Any other insight or links would be appreciated on this subject.

Thank you!

#affiliate #question #rev #share
  • Profile picture of the author BKKBound
    Hi edyang,

    Those are some very open ended questions and very much depend on your market niche and what your competitors are doing.

    Firstly, have you considered using a service such as shareasale to manage your affiliate program. The reason I suggest looking at managed programs is because many affiliates often look at the risk factor of dealing with a brand new business etc...are they goign to get paid out...whats the longevity of the program etc that is something to think about and adress.

    So on to your questions
    1. Revenue sharing longevity really depends on whats being offered in your market...sometimes there is a large upfront payment and then nothing else for the term of the client and othertimes its revenue for the life of the client. What are your competitors offering in this space?

    2. Regarding affiliate commission rates yet again it depends on what is happening in that space of your niche. As an affiliate, I generally prefer a steady payout....or if its a risky product like a rebill I prefer a large upfront payment.

    My advice to you is go and do some competitive analysis on your market. Whoa re your major competitors, what are they offering product price wise, do they run affiliate programs, what are their terms etc.

    Anyway, hope that helps and pop back on with more questions once you have gathered some info.
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  • Profile picture of the author edyang
    Hi BKKBound,

    Thank you for your reply.

    The tricky part is that there aren't any direct competitors in this space. Rescue Time is the closest, and even then it's not quite accurate to my client's service offering.

    The other tricky part is that this is B2B software for the most part, so there just isn't really much affiliate marketing done in this space. I wanted to change that and bring successful implementation of partner/affiliate marketing to B2B as I think it would be a great way to generate new clients.

    So to sum it up, there's not much to compare against :/

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