At Partnify we believe that becoming a Software As A Service (SaaS) Affiliate is a win/win, a win for the company being promoted and a win for the partner of affiliate. This flies in the face of much commercial logic, but how? Read on to discover.
Firstly let’s look at the SaaS model and it becomes apparent. Whilst we hear about the massive profits and growth that companies like Facebook have achieved. Perhaps more interesting and relevant however is the profits that much much smaller unknown companies make with their SaaS offering.
Unlike most businesses many SaaS companies have extremely low fixed and running costs, they may well be operating as a distributed business model with staff, both developers, support and customer service staff working from home. Many SaaS companies start with developers identifying a niche need and developing their solution in spare time, so there is no external cost of highly paid developers. Set again this background customer acquisition is frequently the greatest cost. For many give the history of the business access to capital is also limited.
Typically customer acquisition is expensive and for many firms that come from a development background it is not a natural skill, so the opportunity to grow the business on shared risk is very attractive.
What Are the Numbers of a Typical Incentive?
At Partnify we refer to these as promotions, or campaigns and whilst there is no hard and fast rules we see frequently commission approaching 50% OF THE SALE REVENUE for years. Added to this the general up-trending of the cost of SaaS offering and you can see the attraction of becoming a SaaS Affiliate.
Furthermore given the marketplace directly pits one SaaS company against another to delivery the best incentive it becomes obvious why they are so attractive to affiliates.
Solutions fall into two categories; Business To Business (B2B) and Business To Consumer (B2C). Whilst generally B2C have greater reach B2B have higher unit prices.
Consider a typical mid-range solution from a B2B vendor.
- Price/Month: $80.00
- Commission: 50%
- Duration: 3 Years
- Total Revenue: $80 x 0.5 x 36 = $1,440.00 or $40 per month.
That is just working with one vendor. Image working with multiple vendors, enjoying exponential growth.
Join Partnify as a Affiliate (it takes seconds) and discover the tips to start making your initial recurring income conversions.