SaaS Affiliate Marketing

5 Reasons Your SaaS Business Needs an Affiliate Program

Whether it’s task manager software for organizing workflows…

Payment service that divides costs during social outings…

Or the health tracker to motivate us towards our individual fitness goals…

SaaS applications have intertwined with our routines, both professional and personal, changing the way we perform our daily tasks.

But as the industry continues to grow rapidly and more competition emerges, it can be difficult for SaaS companies to stand out in a crowded marketplace. Aside from the risk of users getting lost in the huge amount of ads that fill their screen, the cost of display advertising in AdWords and Facebook can be quite expensive, especially if you’re just getting started.

This is where affiliate marketing comes into play. We are increasingly seeing how affiliate marketing works for SaaS.

Affiliate marketing provides SaaS companies with an additional marketing channel to reach customers directly and optimize growth.

Affiliate marketing encourages individuals (affiliates) to promote your brand in exchange for a commission.

For SaaS, this is usually when someone signs up for a subscription. With Tapfiliate’s Customers Feature, you can track referred customers from signing up for a trial to signing up for a paid subscription.

Here are some of the ways affiliate marketing can help you grow and scale your SaaS.

1. Save on marketing costs

Only pay for ads that actually convert.

With a pay-per-performance model, affiliate marketing is very cost effective. It is a low-risk investment with a clear return on investment compared to other online marketing channels.

Ads on Google or Facebook can bring users to the site. However, there is no guarantee that the target audience is a good match for your software. Or that the impression/click will result in a conversion.

With affiliate marketing, you avoid spending on advertising campaigns that don’t result in new customers.

2. Reach targeted audiences

SaaS companies can reach entirely new audiences through an affiliate network.

There’s likely to be a close match between who you’re selling to and the target audience of the affiliates you’ve chosen. This overlap will bring in targeted traffic, so you’ll get higher quality leads who are more likely to convert to paying customers.

This is especially true if you’re partnering with a niche-specific affiliate.

Niche affiliates that focus on specific topics or industries have “blog authority”——that is, people go to their site for expertise, information, and advice on a particular topic. They are reliable sources and have the ability to create unique, in-depth content that can be shared with their established audience.

An example of this is the popular YouTuber Danksy and the Adobe Affiliate Program.

Danksy is a YouTuber who has created nearly 500 tutorials on how to use Adobe software. His tutorials have become wildly popular, he has almost half a million followers and ranks at the top of any YouTube Search results.

So whether you’re just starting out looking for “How to use Adobe Photoshop” or an advanced designer looking to “create a 3D text effect in Illustrator”, a Danksy video will likely pop up.

Each video includes an affiliate link in the description to purchase Adobe software – bringing a huge, targeted audience directly to Adobe’s website. So much so that 60% of YouTube viewers say they follow YouTuber’s advice on what to buy.

3. Leverage word of mouth

Affiliates provide a real and authentic voice for your marketing.

Users will trust who the information comes from. Think of it as a friend share rather than a salesperson selling.

A trusted affiliate doesn’t want to ruin their user’s experience by flooding a site with ads that contain irrelevant or inappropriate links. Instead, they provide users with relevant, engaging and valuable ads.

Affiliates also have the ability to simplify the software in a way that their audience can clearly understand, especially if they have used your software before. YouTube is a great way for affiliates to generate “how-to” content and software reviews.

Additionally, it’s a great way to share free trial coupon codes or signup links.

Focus on building a network of high-quality affiliates who fully understand your software and don’t just share it for the sake of sharing. Ideally, this is an affiliate that uses your software regularly or has expertise in the field.

Your existing customers also make great partners. Stand-alone promotions are a powerful marketing message that gives your software a stamp of approval.

With Tapfiliate’s Partner Recruitment feature, you can easily invite customers to become members. Using this tool, new customers (not yet affiliates) will be automatically sent a referral link that they can use instantly to spread the word about your business.

SaaS companies are in a unique position to offer affiliates an advantage not commonly found elsewhere: recurring commissions.

The recurring revenue model of SaaS companies translates into recurring payments, which can be very attractive to affiliates.

Thus, you will be able to attract top talent, including popular bloggers and influencers, and encourage them to be active in promoting and linking customers to your software.

5. Build customer loyalty

The affiliate program is a great way to collaborate with your existing customers.

This is a win-win for existing customers.

They are happy with your SaaS and can now get paid to share why.

If they are rewarded for sharing their experience, they will feel empowered and committed to your company. This not only promotes your software, but you also ensure that these customers remain loyal because they now have a vested interest.

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Overall, an affiliate marketing program is a mutually beneficial way to reward loyal customers and simultaneously reach niche audiences filled with new leads.

Check out Tapfiliate’s SaaS integrations here.


Sign up for Tapfiliate’s 👉 free trial to start your SAAS affiliate marketing program


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