Affiliate marketing is a performance-based channel where third parties (bloggers, review sites, YouTubers, consultants, newsletters) promote your product and earn a commission for each customer or lead they send. Referrals are tracked with unique links or codes. SaaS programs often pay a share of subscription revenue for a set period rather than a one-off fee.
How SaaS programs are set up
- Tracking: an affiliate platform issues links and records referrals, usually with first-party cookies and a lookback window.
- Commission model: a flat fee per sign-up or customer, or a recurring percentage of revenue for a number of months.
- Terms: rules on brand bidding, coupon sites, disclosure and self-referrals.
- Assets: screenshots, copy, comparison data and demo accounts for partners.
Affiliates and search
Many affiliates are content sites that rank for “best [category] software” and “[product] review” queries. That means they often occupy results pages you care about, and their copy describes your product. Give them accurate information and keep your own comparison and alternatives pages strong. Affiliate links should carry rel="sponsored" or rel="nofollow", as Google asks for paid links.
Forbid affiliates from bidding on your brand name in search ads unless you agree to it, or they may buy clicks you would have received anyway.
Disclosure
In the US, the FTC expects affiliates to clearly disclose that they earn money from recommendations. Other countries have similar rules. Make disclosure a condition of your program and check it.
Example
A program for consultants
Hypothetical company Gleamhurst sells bookkeeping software. Its affiliate program targets accountants who advise small businesses, paying a recurring commission for the first year of each referred customer. Brand bidding is banned in the terms, and partners get a demo account and an up-to-date feature sheet.
Common mistakes
Paying for customers you already had
Coupon sites and brand bidders can intercept buyers at checkout. Set rules and audit referral sources.
Questions
They overlap. Referral programs usually reward existing customers for recommending you; affiliate programs pay outside publishers and partners as a channel.
