S5E16 - How to set up & grow a SaaS affiliate program with Adam Glazer
Jan 7, 2025
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In this discussion, Adam Glazer, President of Partner Commerce and expert in B2B affiliate marketing, elaborates on the mechanics of setting up effective affiliate programs. He demystifies affiliate marketing, emphasizing its performance-driven nature. Adam highlights when SaaS companies should consider launching affiliate programs and shares common pitfalls to avoid. The conversation also dives into strategies for recruiting and supporting affiliates, and outlines best practices for scaling these programs to maximize growth. Tune in for valuable insights!
Affiliate marketing is a performance-driven partnership model that allows SaaS companies to scale effectively by rewarding affiliates only for successful sales or leads.
Successful affiliate programs require active management and support for affiliates, ensuring they have the resources and training to optimize their performance.
Deep dives
Understanding Affiliate Marketing
Affiliate marketing is fundamentally a referral-based partnership system where affiliates drive traffic or leads to advertisers and earn rewards for successful transactions. It offers a performance-based model, meaning advertisers only pay when specific outcomes are achieved, reducing financial risks compared to traditional paid media. This system is particularly advantageous for companies looking to scale, as it allows for limitless reach by continually adding new partners. The process involves clearly defining an ideal customer persona (ICP) and matching it with an ideal partner persona (IPP) to streamline recruitment and maximize effectiveness.
Timing and Conditions for Affiliate Programs
SaaS companies should set up affiliate programs early in their growth trajectory, as building and nurturing partnerships takes significant time. Programs work best in the small to medium business (SMB) segment, especially for companies with large total addressable markets (TAM) and simple sales cycles. Affiliate marketing lends itself to platform products that have surrounding ecosystems of service providers, making them more appealing to potential affiliates. Early-stage companies can succeed by having a valuable product and well-structured incentives, even without extensive brand awareness.
Active Management and Mistakes in Affiliate Programs
A critical mistake many brands make is the assumption that affiliate marketing is a turnkey solution that can run passively once set up. Successful programs require active management, relationship development, and consistent engagement with affiliates to ensure they have the tools and knowledge needed to sell effectively. Brands should avoid relying solely on automation and must facilitate communication, regularly updating resources, and training for their affiliates. Failing to manage affiliates actively can lead to suboptimal performance and ineffective partnerships.
Structuring Rewards for Affiliates
To incentivize affiliates effectively, companies should design flexible reward structures that align with the level of risk affiliates are willing to take. This includes offering various payment models, such as revenue share, cost-per-lead, or hybrid structures that provide different options based on an affiliate's performance and capabilities. Affiliates who assume more risk should be compensated with higher rewards, encouraging them to drive better results. Additionally, incorporating tiered rewards for different performance levels can motivate affiliates to achieve higher sales metrics and engage more deeply with the program.
What exactly is affiliate marketing, and how can you successfully set up and scale a SaaS affiliate program? In this exciting episode of the Grow Your B2B SaaS Podcast, host Joran Hofman sits down with Adam Glazer, the President of Partner Commerce, to explore the strategies for launching and growing a thriving affiliate program. Adam, a true expert in the field, explains that affiliate marketing is a referral-based partnership model where an affiliate, or publisher, drives traffic or leads to an advertiser or merchant. In return, the advertiser compensates the affiliate for the traffic or sales generated through their referrals. Adam emphasizes that the key to affiliate marketing is its performance-based nature affiliates earn commissions only when they successfully drive a sale or lead, making it a highly effective and results-driven approach. Tune in to learn how you can leverage this powerful marketing strategy to accelerate your SaaS growth!
Key Timestamps
(0:00) - Introduction to affiliate marketing misconceptions
(0:49) - Episode overview and guest introduction
(1:22) - Defining affiliate marketing
(2:06) - Why SaaS companies should set up an affiliate program
(5:03) - When should a SaaS company set up an affiliate program?
(8:16) - Ideal circumstances for affiliate marketing success
(10:37) - Common mistakes in setting up an affiliate program
(11:09) - Importance of supporting affiliates
(11:30) - How to start setting up an affiliate program
(15:52) - Recruiting affiliates
(19:14) - Onboarding affiliates
(21:38) - Payment models and rewarding affiliates
(25:35) - Best practices for setting up a successful affiliate program
(30:57) - Challenges in growing an affiliate program
(34:06) - Advice for SaaS founders growing to 10K MRR
(34:53) - Growing towards 10 million ARR
(37:03) - Contact information for Adam Glazer
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