Recurring Commission
A commission model where affiliates earn ongoing payments for as long as the referred customer remains a paying subscriber. This is the standard model for SaaS affiliate programs and creates predictable passive income for affiliates.
Recurring Commission Models
Recurring commissions pay affiliates continuously as long as referred customers remain subscribed. Rather than one-time commission at conversion, affiliates earn monthly percentage of customer subscription fee. Example: affiliate refers customer paying $100/month at 10% recurring commission = $10/month recurring payment. As long as customer remains subscribed (12 months example), affiliate earns $120 total versus $10 one-time commission. Recurring commissions strongly incentivize affiliate focus on customer fit and retention.
Recurring vs. One-Time Commissions
One-time commissions encourage affiliate volume focus—acquire as many customers as possible, customer quality less important. Recurring commissions encourage quality focus—better-fit customers stay longer generating higher lifetime affiliate value. Example: affiliate with recurring commission chooses promoting to ideal customers versus marginal fits. Over 12-month period: 10 good-fit customers (90% retention, 12-month lifetime) generate 10 × $100 × 10% × 12 = $1,200 recurring commission. 50 marginal-fit customers (40% retention, 4.8-month average lifetime) generate 50 × $100 × 10% × 4.8 = $2,400 one-time commission. While one-time model appears better short-term, recurring aligns affiliate long-term incentives with company success.
Implementing Recurring Commission
Calculate sustainable recurring rates: if customer LTV is $1,200, gross margin is 70%, and CAC budget is 30% of LTV, maximum sustainable recurring commission is 21% of MRR over customer lifetime. Higher rates become unprofitable at scale. Most B2B SaaS programs use 5-15% recurring commission. Automate recurring commission calculation in tracking platform. Implement clawback policies for customer refunds and cancellations—if customer cancels, future recurring commissions stop and prior commissions may be reversed depending on agreement. Monitor affiliate satisfaction with recurring models—some prefer guaranteed one-time income. Hybrid approach: larger one-time payment plus smaller recurring commission balances security with incentives. Structure recurring commissions with cap: pay first 12 months or until customer lifetime value reaches $2,000, then stop. This provides reasonable affiliate payoff while controlling costs.
