When Should a SaaS Launch an Affiliate Program?

Generally, a SaaS should launch an affiliate program after achieving product-market fit (PMF) and having a clear, repeatable revenue process. To dive a bit deeper on this;

Key Indicators You’re Ready for an Affiliate Program

1. Product-Market Fit & Customer Stability

You really know who your ideal customer profile (ICP) is.
You have optimised your conversion rates, so traffic will convert into sign ups & paid clients.
You have clear positioning: Affiliates can explain your product in simple terms.

2. Consistent MRR and Low Churn

Steady MRR growth, ideally above $20k MRR or higher.
Your churn is under control: Customers stick around long enough to make commissions sustainable.
Your pricing is stable enough for affiliates to confidently promote. Too low pricing or Lifetime deals won't be attractive for B2B SaaS affiliates.

3. Healthy Lifetime Value (LTV) vs. Customer Acquisition Cost (CAC)

Calculate your LTV. If you can afford to pay affiliates a meaningful commission without losing money, you’re in a good position.

4. Scalable Onboarding & Support

Your onboarding process is smooth, clear, and results in engaged users.
You’ve got resources for support: You have materials and tools ready (documentation, demo access, customer success) so affiliates have something solid to promote.
You have someone to manage affiliate relationships, communications, and troubleshooting.

5. Stable Conversion & Funnel Optimization

You already see organic demand: People are mentioning or recommending your product informally.
The funnel from trial → paid → renewal should be optimized. If you have serious drop off or friction, affiliates will see low returns, which hurts motivation.

See an Affiliate Program Checklist; how to launch an affiliate program step by step.

Risks of Launching Too Early

No clarity on ICP: Affiliates won’t know who to target, leading to poor quality leads.
Low conversion rate; Affiliates will drop off if their traffic is not converting into sign ups and/or paid clients.
High churn = wasted commissions: Affiliates won’t stay if their referred customers cancel quickly.
Program mismanagement: Without clear terms and support, early affiliates may churn or misuse brand assets.

See here other common mistakes SaaS companies make when launching an affiliate program.

Early Alternatives Before Launching an Affiliate Program

If you’re not yet ready for a full affiliate program, consider:

In-app referral program; Let existing users invite their network in exchange for rewards (can be in-app benefits). It is a great way to test the indirect marketing channel, with people who already using your product.
Beta ambassador programs: Reward early users with perks for word-of-mouth promotion. This could be part of your in-app referral program, but giving them something extra (upfront + rewards).
Content partnerships: Work with creators on case studies or joint webinars before offering formal commissions. Figure out if this indirect marketing channel will work for your SaaS.

FAQ – Launching a SaaS Affiliate Program

Q: What MRR should I reach before starting an affiliate program?

A: While it varies, many B2B SaaS companies wait until $20k+ MRR to ensure stability. They have figured out the seven things above, making sure the traffic of affiliates will convert into revenue.

Q: Should I launch an referral program before ab affiliate program?

A: Yes. Referrals leverages existing customers, which are the best people to promote your product, as they received value from it. Affiliates are great to scale the indirect marketing channel further once you have PMF. The best part, setting up an in-app referral program is free.

See the key differences between affiliate vs referral marketing.

Q: Can I run affiliates if I’m pre-revenue?

A: It’s risky. Affiliates won’t invest effort if the product is unproven. Aks yourself, would you promote a product if you are unsure if they would convert your traffic into paid clients; probably not. We would recommend to start with an in-app referral program, have your current users recommend you to others.

Q: What if I can’t afford recurring commissions yet?

A: Don't set up an affiliate program. If you are can't afford recurring commissions, or simply don't want to pay them; don't set up an affiliate program. All SaaS affiliate program on Reditus offer an recurring commission (see Reditus Marketplace for examples), an in-app referral program might be a better option for you. Learn why recurring commissions motivate affiliates in B2B SaaS.

Q: Is affiliate marketing only for B2C SaaS?

A: No. B2B SaaS affiliate programs are highly effective for B2B SaaS companies as well. See Case Studies on SaaS companies which are successfull with affiliate marketing.

Relevant links;

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