February 1, 2024

Everything you need to know about SaaS Affiliate Marketing

As the proprietor of a SaaS product, establishing a network of affiliates becomes essential for swiftly and organically expanding your reach to potential customers. Affiliate marketing has become a formidable tool for SaaS companies who are looking for customers from a particular niche. Affiliates can tap into their network and help SaaS companies to promote their products in a very structured and cost-effective way.

The premise of this write-up is to discuss different facets of affiliate marketing in the domain of SaaS marketing and how to efficiently implement affiliate marketing SaaS strategies for success.

What is SaaS Affiliate Marketing?

SaaS, an acronym for "Software as a Service," refers to a software distribution model where applications are hosted by a third-party provider and made available to customers over the internet. SaaS Affiliate Marketing is a strategic approach within the realm of affiliate marketing that involves promoting and selling SaaS products through a network of affiliates.

In a SaaS Affiliate Marketing model, individuals or entities (affiliates) partner with a SaaS company to promote its software products. These affiliates earn commissions based on the successful referrals or sales they generate for the SaaS product.

Affiliate marketing strategy, benefits SaaS companies in the following ways -

Low risk and cost effective marketing strategy -  A marketing strategy that boasts both low risk and cost-effectiveness involves compensating affiliates or social media influencer networks based on their performance. In this model, payment is directly tied to the measurable outcomes achieved, ensuring that financial investment aligns with the actual success of the marketing efforts.

Highly scalable model - Saas affiliate marketing programs can be made highly scalable. Automation plays a significant role in the scalability of SaaS affiliate programs. Automated tracking, reporting, and commission calculation processes streamline operations, enabling businesses to manage a large number of affiliates efficiently without having to hire additional resources.

Exposure to diverse markets - SaaS affiliate marketing facilitates exposure to diverse markets by utilizing a network of affiliates who, with their distinct niches, audience expertise, and targeted promotional efforts, enable SaaS businesses to reach a broad and varied spectrum of potential customers in different industries and geographical locations.

Social proofing & trust building - By lending their names to an affiliate marketing program, affiliates or social media influencers bring valuable credibility and trust to the promoted products or services, leveraging their authority and rapport with their audience to endorse and recommend offerings, ultimately increasing the likelihood of conversion and building a positive brand perception.

6 Key Steps to Get Started with Affiliate Marketing for a SaaS Product -

Step 1 - Affiliate recruitment

Recruiting affiliates who have the potential to effectively market their software products. Affiliates can include bloggers, social media influencers, content creators, industry experts, or other entities with a relevant audience.

Step 2 - Determine commision structure

SaaS Affiliate Marketing involves a commission-based payment structure. Affiliates earn a predetermined commission for each successful sale or conversion resulting from their promotional activities. Commissions can be one-time payments or recurring, depending on the SaaS product's pricing model and nature of the product.

Step 3 - Product demo for content creation

Creating content for a SaaS product marketing requires a detailed product demo to the affiliates, enabling them to effectively understand, showcase, and communicate the key features and value propositions of the software to their respective audiences in a compelling and informed manner. Content creation without a detailed product demo to the influencers across various platforms including instagram affiliate marketing will not resonate with the audience.

Step 4 -  Affiliate link sharing and audience targeting

The next step is to provide unique trackable affiliate links with the influencers or content creators. The affiliates use these links into their content to leverage their existing audience or employ targeted marketing strategies to reach potential customers who may be interested in the SaaS product. These links are also used to trace the traffic, affiliate performance and sales generated from the promotional effort made by the affiliate.

Step 5 - Performance Tracking and Analytics

The SaaS company utilizes tracking tools and analytics to monitor the performance of each affiliate. This includes metrics such as click-through rates, conversion rates, and overall revenue generated. The data helps assess the effectiveness of the affiliate marketing program.

Step 6 - Update Affiliates with New Product features

Updating affiliates about new product features is essential for maintaining accurate representation, optimizing marketing strategies, gaining a competitive edge, enhancing engagement, aligning with audience needs, solving problems effectively, strengthening relationships, gathering feedback, and coordinating marketing efforts. This collaborative approach contributes to the overall success of the affiliate marketing program for SaaS companies.


SaaS businesses can strategically partner with affiliates who specialize in relevant niches or industries. This targeted approach enhances the scalability of the program by reaching specific markets and addressing the unique needs of diverse audiences.

Kamna Datt
Content Writer
A content writer by profession, Kamna is an Influencer marketing enthusiast writing insightful articles about the space that will benefit brands and influencers alike!