The SaaS market is becoming more competitive. According to Gartner, the SaaS market has exploded and is growing from $31 billion in 2015 to an anticipated $171.9 billion in 2022.
Despite the current state of economic instability, some analysts predict that there will be up to a million SaaS businesses in the next ten years.
How does it affect your SaaS company? Adopting only one or streamlined marketing strategy will help you promote your services and draw in more customers to help you stand out. But with SaaS affiliate marketing, the result may be multiplied.
How? Well, through this post, we define what affiliate marketing is and share complete advice on ways to utilize it successfully to build your SaaS company’s brand, spur growth, and scale it.
What Is SaaS Affiliate Marketing?
A marketing channel known as affiliate marketing involves choosing people or organisations to market your company’s name, goods, or services in exchange for a commission.
An affiliate, often referred to as a publisher, uses a special link or promotional codes to direct leads to your website. An affiliate is paid each time a potential customer clicks on this link and makes a purchase on your website or signs up for your services.
When done right, this kind of partner marketing increases sales and brings in a sizable amount of money online. Both brands and affiliates profit from it. As a result, affiliate marketing campaigns are becoming increasingly popular.
Note : Not all conversions may be attributed to affiliate marketing. As it helps to grow and scale your business.
Benefits Of Running A SAAS Affiliate Marketing Model
SaaS affiliate marketing is a useful, low-risk business expansion approach, and it also has the following benefits:
1. You acquire new platforms for marketing your services.
Affiliates can advertise your company by connecting with potential customers on their blogs, forums, social media accounts, online communities, groups, and other platforms. It implies that you have easy access to dozens of new traffic channels and all of their advantages.
2. It reaches a particular niche market.
SaaS affiliates are constantly looking for new methods to make money off of the trust they have already established with their readers, subscribers, and followers. An excellent strategy to drive targeted traffic is by selecting relevant affiliates whose audience connects with your company.
3. It increases ROI and lowers CAC.
An affiliate program can be operated with no initial outlay of funds. Instead, you pay for actual conversions, increasing your ROI and simultaneously lowering your customer acquisition cost (CAC).
Improved ROI and lower CAC are especially valuable to startup SaaS organizations in the early phases of growth when they want to draw in new investors, even though revenue growth is an affiliate program’s ultimate goal.
4. It raises brand recognition
In your program, you should specify that your company’s name, logo, and branding appear on the websites of your affiliates.
This strategy improves your brand’s visibility, raising the likelihood that prospective customers will become aware of you. And after learning about you, they’ll be more likely to subscribe when they know about you from a trusted source.
5. It’s easily scalable
There is no need to engage more sales representatives to keep up with the growing demand when affiliates are supplying leads.
Instead, only increase the number of top-notch associates and take pleasure in the outcomes. Affiliate marketing enables you to start with low costs and scale up later without worrying about blowing your budget.
6. It can increase Free Trial Users
Marketers and content creators love SaaS affiliate programmes for a variety of reasons. Free trials for SaaS products are quite appealing since website visitors brought in by affiliates are more likely to join up if they can try the service out first.
Yes, affiliates may not receive a commission until leads turn into paying customers, but the likelihood that they will be compensated is higher because it is simpler to turn free users into paying customers than to convince them to pay up front.
Ways To Launch An Effective SaaS Affiliate Program
Below are the ways to start an effective SaaS Affiliate Program:
1. Determine Affiliate Marketing Goals & KPIs
Here are some KPIs you can track, as examples:
- Conversion Rate: The proportion of clicks on affiliate links that result in a purchase. Track this metric to evaluate the effectiveness of each affiliate individually and pinpoint your top contributors. The measure is useful for comparing the efficiency of affiliate marketing to that of other marketing avenues.
- Sales Made By Each Affiliate: This indicator will show which of your affiliates are doing well and which ones are just starting to shine.
- Affiliate Revenue Per Quarter/Year: How much money affiliate marketing generates over a certain time frame. Companies occasionally fail to notice this important success metric because they are preoccupied with thousands of other useless indicators.
- Income From Investment (ROI): Only once you have recovered the original costs associated with your programme can you begin monitoring ROI (commissions, paid promotion, and affiliate tracking software).
- The Percentage Of Affiliates Who Are Active: Find out how many of your registered partners are responsible for your company’s leads and revenues.
- The Number Of Inactive Affiliates: How many affiliates aren’t actively directing traffic to your website. You can accurately classify your publishers using this metric, and you can then apply various strategies to each sector as needed.
- CLV or LTV (Customer lifetime value): How much money your typical consumer will spend while doing business with you. To gauge the success of the programme, monitor the LTV of the clients that come from your affiliates.
2. Select An Affiliate tracking Software According To Your Needs
You can start, run, and improve your own affiliate or referral networks using affiliate tracking platforms. The majority of tracking solutions have a wide range of features that enable campaign customization for every company purpose. Advertisers can simply compute commissions, measure conversions, and save affiliate-related data under one hood thanks to extensive dashboards and real-time statistics.
Things To Consider:
Pricing. Compare various tools to see which has the best price-to-feature ratio. You may easily choose the pricing plan that best suits your needs because the majority of affiliate tracking programmes offer a variety of options.
Integrations. Pay attention to the products that have rapid, ready-made connections with your platform if you lack technical knowledge and want the software to work right out of the box.
Features. Make a list of the features you absolutely require and check to see if the tool you are considering has them. Software like Trackier Performance Marketing Software may be required for a SaaS product in order to set recurring or lifetime commissions and obtain comprehensive reports on each affiliate segment.
Onboarding and assistance for customers. To swiftly launch your programme, use a technology that delivers excellent support, simple onboarding, and product training.
When you handle your affiliate program with the proper resources, it may produce fantastic results for your SaaS business.
If you need assistance with our product or any questions or queries regarding SaaS Affiliate Marketing, feel free to reach us. We would be happy to help.