How Do SaaS Affiliate Commissions Work? (Recurring vs One-Time)

How SaaS Affiliate Commissions Work

When you run an affiliate program for your SaaS, you pay affiliates a commission each time they refer a customer who becomes a paying subscriber. The two main commission models are recurring commissions and one-time commissions. Each has different implications for how you attract, motivate, and retain affiliates.

Recurring Commissions

With recurring commissions, affiliates earn a percentage of the referred customer's subscription payment every month (or billing cycle) for as long as that customer remains active.

How it works in practice

• An affiliate refers a customer who signs up for your $100/month plan
• You offer a 20% recurring commission
• The affiliate earns $20 every month that customer stays subscribed
• If the customer stays for 24 months, the affiliate earns $480 total from that single referral

Why recurring commissions work well for SaaS

Recurring commissions align affiliate incentives with your business model. Since SaaS revenue is recurring, paying commissions on an ongoing basis means affiliates are motivated to refer high-quality customers who stick around, not just people who sign up and churn.

This creates a natural quality filter. Affiliates will promote your product to audiences who are genuinely a good fit because their long-term earnings depend on customer retention.

Common recurring commission structures

• Percentage of MRR: The most common model. Typically 15–30% of the monthly subscription fee
• Percentage with a cap: For example, 20% recurring for the first 12 months, then it stops
• Lifetime recurring: The affiliate earns commissions for as long as the customer pays. This is the most attractive to affiliates

One-Time Commissions

With one-time commissions, affiliates receive a single payment when the referred customer makes their first purchase or completes a specific action.

How it works in practice

• An affiliate refers a customer who signs up for your $100/month plan
• You offer a $200 one-time commission
• The affiliate receives $200 once, regardless of how long the customer stays

When one-time commissions make sense

One-time commissions can work if your average customer lifetime value is high enough that a single payout is still attractive to affiliates. They are simpler to manage and easier to forecast costs.

However, one-time commissions tend to attract affiliates who focus on volume over quality. Since their earnings do not depend on customer retention, they have less incentive to refer well-matched customers.

Which Model Should You Choose?

For most B2B SaaS companies, recurring commissions are the better choice. Here is why:

• Better affiliate retention: Affiliates stay active longer because their income grows over time
• Higher quality referrals: Affiliates are incentivized to refer customers who will stick around
• Alignment with SaaS economics: Your revenue is recurring, so your commission structure should be too
• Competitive advantage: Most serious SaaS affiliates prefer recurring programs over one-time payouts

How Commissions Work in Reditus

Reditus supports both recurring and one-time commission structures. Here is what happens behind the scenes:

1. Tracking: When someone clicks an affiliate link and signs up, Reditus records the referral.
2. Payment detection: When the referred customer makes a payment through Stripe or your connected payment processor, Reditus automatically detects it.
3. Commission calculation: Based on your commission settings, Reditus calculates the affiliate's earnings.
4. Recurring tracking: For recurring commissions, Reditus continues to track subsequent payments and generates new commissions each billing cycle.
5. Payout: When commissions reach the payout threshold, they become eligible for payment to the affiliate.

Setting Up Your Commission Structure

When configuring your affiliate program in Reditus, consider:

• Commission percentage: 15–25% is common for B2B SaaS. Higher rates attract more affiliates but reduce your margin.
• Cookie duration: How long after clicking an affiliate link does the referral still count? 30–90 days is standard.
• Payout threshold: The minimum amount before an affiliate can request payment.
• Tiered commissions: Reward top performers with higher rates as they hit referral milestones.

For more on setting the right commission rate, see our guide on what is a good commission rate in B2B SaaS.