8 Affiliate Revenue Model Examples Unpacked for SaaS Growth

As affiliate marketing managers, understanding and selecting the most fitting affiliate revenue model for your business can significantly impact your success.

Depending on whether your software thrives by offering a free trial approach or requires a demo-based sales motion, choosing your affiliate marketing business model can make all the difference in maximizing your efforts and achieving sustainable growth.

This guide cuts through the spectrum of every notable affiliate model, offering a curated exploration of eight options you can try based on your offering and business goals.

From the quintessential pay-per-sale (PPS) model to innovative hybrid approaches, each model is dissected to comprehensively understand its mechanics, benefits, and practical implementation tips.

Whether you're aiming to reform your existing affiliate program or are at the cusp of launching a new one, the insights provided here are tailored to help you unlock the full potential of SaaS affiliate marketing.

Let's proceed with an open mind and a keen focus, ready to discover the affiliate marketing blueprint that can catapult your SaaS product to new heights.

8 affiliate revenue model examples every SaaS marketer should know about

Rather than you having to research affiliate programs that have adopted different model strategies to generate revenue, we have done the analysis and curated a practical list for you. As we proceed, consider every affiliate marketing model as a different tool in your arsenal, offering unique benefits and opportunities for customizing your SaaS affiliate marketing strategy.

#1 Pay-per-sale (PPS) affiliate revenue model

Screenshot from SE Ranking affiliate program landing page.

The Pay-per-sale (PPS) affiliate revenue model is a cornerstone in the affiliate marketing industry. This model operates on a straightforward yet powerful premise - affiliates are compensated with a commission only when their referred leads result in actual sales. This direct link between affiliate effort and financial outcomes creates a highly motivated partnership environment, ensuring that partners are focused on not just generating leads but converting them into paying customers. For example, SEO software SE Ranking, per their program page, pays a 30% lifetime commission on every subscription sale.

When does it make sense to use this model?

• Transparent sales funnel: Companies with a well-defined and trackable conversion process benefit from the PPS model, as it allows for easy sales attribution to affiliate efforts.
• Established market presence: SaaS offerings with a proven market fit and established customer base make this affiliate marketing revenue model advantageous, ensuring affiliates are motivated by the likelihood of successful conversions.
• Strategic growth initiatives: Ideal for SaaS companies aiming to expand into new markets or segments where targeted affiliate partnerships can drive meaningful sales.

Key tips for successful implementation of this model:

• Ensure accurate tracking: SaaS affiliate platforms like Reditus streamline tracking and managing affiliate sales, simplifying the process of compensating partners accurately and efficiently.
• Optimize commission structures: Implement competitive commission rates to attract high-performing affiliates to promote your solution.
• Regular performance analysis: Continuously monitor affiliate performance to optimize strategies, ensuring the PPS model drives desired sales outcomes for your SaaS product.

#2 Pay-per-click (PPC) revenue model

The Pay-per-click (PPC) affiliate revenue model is a dynamic approach within the affiliate marketing sphere, emphasizing the importance of traffic generation over direct sales. In this model, affiliate marketers or content creators are compensated for each click they generate to the merchant's website, regardless of whether those clicks convert into sales. This system prioritizes the volume of traffic driven by the affiliate. For example, a SaaS company might pay affiliates for each visitor they redirect to its product landing page, incentivizing affiliates to focus on broadening reach and visibility.

When does it make sense to use this model?

• Early-stage SaaS companies: Ideal for new entrants seeking to boost site traffic and brand awareness quickly.
• Freemium software offerings: Works well for SaaS products that offer a free version, aiming to maximize exposure and sign-ups.
• High-conversion websites: Suitable for companies with a proven track record of converting site visitors into customers or leads, maximizing the value of each click.

Key tips for successful implementation of this model:

• Set clear budgets and caps: Establish clear budgets for PPC campaigns to manage costs effectively, using caps to prevent overspending while still incentivizing affiliate efforts.
• Focus on quality over quantity: Ensure that the traffic driven by affiliates is targeted and relevant, increasing the likelihood of future conversions even if the model doesn’t directly pay for them.
• Optimize landing pages: Ensure landing pages are conversion-focused with clear CTAs and engaging content to maximize the effectiveness of each click.

#3 Pay-per-lead (PPL) revenue model

The Pay-per-lead (PPL) revenue model in affiliate marketing focuses on compensating affiliates for generating leads rather than sales or clicks. In this framework, affiliates earn a commission for every potential customer they direct to the merchant's site, who then completes a specific action, such as signing up for a trial, filling out a contact form, or subscribing to a newsletter. For instance, a SaaS company offering a project management tool might pay affiliates for each user who signs up for a free trial, valuing the generation of qualified leads over immediate sales.

A real-world example of this model is Grammarly's affiliate program, which pays $0.20 for every free account sign-up.

When does it make sense to use this model?

• High-ticket SaaS offerings: Ideal for SaaS products with longer sales cycles and higher customer lifetime values, where each qualified lead has significant potential revenue.
• Complex solutions requiring education: Works well for SaaS solutions that need more customer education and nurturing before a purchase decision is made, leveraging affiliates to feed the top of the sales funnel.
• Market expansion efforts: Suitable for SaaS companies entering new markets or targeting new customer segments, where building a base of interested leads is more valuable than immediate conversions.

Key tips for successful implementation of this model:

• Set qualification criteria: Define clear and stringent criteria for what constitutes a qualified lead to ensure affiliates are incentivized to bring in high-potential prospects, aligning with your SaaS company's target audience.
• Optimize landing pages: Develop and continuously optimize landing pages tailored to the affiliate traffic, ensuring they're designed to maximize lead capture with compelling calls to action and minimal friction.

#4 Pay-per-install (PPI) revenue model

The Pay-per-install (PPI) revenue model is specifically tailored toward software and SaaS companies whose primary product offering involves downloadable software or mobile applications. In this model, affiliates are compensated for each software or app installation that results from their referral efforts. An example of this could be a SaaS company offering a productivity tool that pays affiliates for each successful installation of their desktop app or mobile application.

When does it make sense to use this model?

• App-based SaaS products: Suitable for SaaS products that rely heavily on app installations, where the primary user interaction occurs within an app environment.
• High user retention goals: Effective for scenarios where the software’s value increases with usage, encouraging installations as a stepping stone to long-term user retention.

Key tips for successful implementation of this model:

• Optimize the installation process: Ensure that the software installation process is as streamlined and user-friendly as possible to maximize conversion rates from clicks to installations.
• Promote app features: Utilize affiliates to highlight unique app features or benefits, encouraging more installations by showcasing the app's value proposition.

#5 Tiered revenue-sharing model

Screenshot of tiered commission plans from HubSpot's affiliate program landing page. 

The Tiered revenue-sharing model in affiliate marketing introduces a dynamic compensation structure where the commission rate increases as affiliates meet certain performance thresholds, such as sales volume or affiliate revenue generated. This model incentivizes affiliates to engage in promotional activities and optimize their efforts for higher returns.

For instance, the HubSpot affiliate program compensates partners with a 30% recurring commission for every qualifying customer they refer. Affiliates can increase their rewards by moving to the next tier level through performance, such as achieving 100-200 signups per month, further incentivizing the generation of high-quality leads over immediate sales.

Another example is the Leadpages partner program, which increases the commission percentage based on affiliate-driven monthly new customer revenue.

When does it make sense to use this model?

• Highly competitive markets: For SaaS companies in spaces where affiliate marketing is highly competitive, offering a tiered commission structure can make an affiliate program more attractive.
• Diverse product offerings: Suitable for SaaS businesses with a range of products or services at different price points, allowing affiliates to target various segments effectively.
• Growth and scalability focus: Great for SaaS companies looking to rapidly scale their user base and sales, incentivizing affiliates to contribute to this growth through increased performance.

Key tips for successful implementation of this model:

• Transparent tier criteria: Clearly define and communicate the criteria for each tier, including the sales or performance metrics required to advance, ensuring affiliates understand how to progress and increase their earnings.
• Support and resources: Provide affiliates with the necessary tools, resources, and support to succeed at each tier level, including marketing materials, product training, and personalized guidance.
• Performance analysis and feedback: Regularly assess the performance within each tier, providing affiliates with constructive feedback and actionable insights to help them move up the tiers and maximize their earnings potential.

#6 Hybrid affiliate revenue model

Screenshot from Semrush affiliate program landing page.

Hybrid revenue models offer the flexibility of combining various compensation structures to create a more diversified and adaptive affiliate marketing program. This example of affiliate revenue model tailors the rewards to suit different types of products, affiliate behaviors, and business goals. For example, a SaaS company might combine a Pay-per-sale (PPS) model for direct product subscriptions with a Pay-per-lead (PPL) model for trial sign-ups and a Pay-per-click (PPC) model for promoting content or webinars. This combination ensures that affiliates are motivated to engage in a broader range of promotional activities, from driving sales to generating leads and increasing brand awareness.

A real-world example of this is Semrush’s affiliate program. They offer partners $200 for every new sale and $10 for every new trial activation, efficiently balancing incentives for both lead generation and direct sales.

When does it make sense to use this model?

• Varied product portfolio: Great for SaaS companies with a diverse range of products, where different compensation models can incentivize the promotion of specific offerings more effectively.
• Multiple affiliate types: Suitable for programs that engage with various types of partners and affiliate networks, from content creators and influencers to deal sites, allowing for tailored incentives that match their promotional strengths.
• Strategic marketing goals: Effective in scenarios where SaaS companies have multiple objectives, such as driving sales, generating leads, and increasing brand visibility, providing the flexibility to reward affiliates for contributing to these goals differently.

Key tips for successful implementation of this model:

• Clear communication: Ensure that the criteria and rewards for each component of the hybrid model are clearly communicated to affiliates, preventing confusion and aligning their efforts with your strategic goals.
• Performance tracking: Utilize robust affiliate tracking software to accurately monitor and attribute affiliate contributions across different revenue models, ensuring fair compensation and insightful performance analysis.
• Regular review and optimization: Periodically assess the effectiveness of the hybrid model, considering affiliate feedback and performance data to refine the program, ensuring it continues to meet the evolving needs of both the company and its partners.

#7 Performance milestone-based revenue model

The Performance milestone-based revenue model is designed to reward affiliates when they achieve specific, predefined goals or actions. This model is highly effective in encouraging affiliates not just to generate traffic or leads but to engage in activities that directly contribute to the SaaS company's strategic objectives. For example, a software company might set milestones such as downloading an eBook, signing up for an email subscription, or completing a product demo. Affiliates are then compensated for each user who completes these actions, aligning affiliate efforts with the company's key performance indicators (KPIs).

When does it make sense to use this model?

• Lead quality improvement: For SaaS companies looking to improve the quality of leads beyond mere quantity, rewarding affiliates for specific actions ensures higher intent from referred users.
• Product engagement boost: Ideal when wanting to increase engagement with a specific feature or content, like eBook downloads or webinar attendance, directly contributing to the customer's journey.

Key tips for successful implementation of this model:

• Define clear milestones: Establish well-defined and measurable milestones that are aligned with your business goals, ensuring they are attainable and clearly communicated to affiliates.
• Monitor and adjust goals: Regularly review the performance against set milestones, being ready to adjust them based on evolving business needs or affiliate feedback to keep the program effective and engaging.

#8 Flat fee commission model

Screenshot from Hiscox affiliate program landing page, an American insurer that uses a flat fee affiliate commission model.

The flat fee commission model in affiliate marketing simplifies the compensation structure by paying affiliates a set amount for each action completed, regardless of the action’s value. This model works well for actions like app installations, form submissions, or trial signups where the value of each action is consistent. For example, a SaaS company might offer a $50 flat fee for every new customer who signs up for a trial of their software through an affiliate link, ensuring straightforward and predictable earnings for affiliates.

When does it make sense to use this model?

• For straightforward transactions: Suited for SaaS companies with clear-cut, uniform offerings where each conversion holds similar value, making complex calculations unnecessary.
• High-volume, low-value offers: Works well for products or services priced at a lower tier, emphasizing quantity over the high value of each conversion.
• Simple affiliate management: Effective for companies seeking an easy-to-manage affiliate program without the need for detailed tracking or tiered commission structures.

Key tips for successful implementation of this model:

• Clear action definitions: Specify what constitutes a payable action, ensuring that affiliates clearly understand how to earn commissions.
• Competitive fee setting: Determine a flat fee that is attractive to affiliates and sustainable for your business model, balancing incentive with profitability.
• Efficient tracking and payment: Utilize a reliable affiliate tracking system to accurately monitor actions qualifying for the flat fee and ensure timely payments to maintain affiliate trust and satisfaction.

Charting the path forward: Choose your model and scale with technology

This comprehensive guide has traversed through various examples of affiliate marketing revenue models, from the straightforward pay-per-sale (PPS) to the flexible hybrid models. Each has been broken down to reveal their use and adoption tips. This knowledge empowers B2B SaaS affiliate marketing managers to navigate and thrive in a competitive market by selecting and implementing the most suitable model for their business.

The flexibility to adapt your affiliate program to the evolving digital marketplace is vital. This means not just selecting a model that fits your current objectives but also being prepared to pivot as your product evolves, market conditions shift, and new affiliate opportunities arise. The ultimate goal is to create a synergistic relationship between your SaaS company and your affiliates, one that fosters growth, enhances brand visibility and drives meaningful sales.

In this dynamic affiliate marketing environment, Reditus stands out as a transformative tool for SaaS companies.

With its free-to-start affiliate program management platform, Reditus enables businesses like yours to manage your affiliate programs efficiently.

Further, getting your program listed on the Reditus Marketplace, an affiliate network tailored specifically for B2B SaaS companies, enables you to showcase your program to a community of over 6000+ SaaS-focused affiliates, significantly expanding your reach and amplifying your growth potential.

Book a personalized demo of Reditus to learn how it can make your affiliate program model a successful reality.

Meet the author

Joran Hofman

Back in 2020 I was an affiliate for 80+ SaaS tools and I was generating an average of 30k in organic visits each month with my site. Due to the issues I experienced with the current affiliate management software tools, it never resulted in the passive income I was hoping for. Many clunky affiliate management tools lost me probably more than $20,000+ in affiliate revenue. So I decided to build my own software with a high focus on the affiliates, as in the end, they generate more money for SaaS companies.