6/12 Affiliate Compensation

Principle 1. Make it Simple for Affiliates to Earn Money

Lesson Summary

This lesson discusses different models for compensating affiliates, focusing on the typical practices within the SaaS industry. You'll learn why to choose recurring commissions and other factors influencing commission rates. 

5 Tips When Choosing the Right Compensation Model:

📝 SaaS = recurring commissions.
E-commerce = lower rates due to cost structures.

📝 SaaS affiliates often get 20-30% recurring commissions, which impacts their promotion willingness.

📝 B2C products require higher percentage commissions.
B2B SaaS offers more flexibility based on product pricing.

📝 One-time upfront commissions are common in web hosting.

📝 Upfront commissions can be compelling for affiliates but require close monitoring and management to prevent fraud.

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