Running a SaaS company is challenging both in the case of acquiring customers and competing against similar companies. You might be number one in this industry back then, but when today’s jobs rely heavily on software, many SaaS companies pop up out of nowhere to challenge your business.
In fact, there are tons of SaaS companies nowadays that users can’t even decide which one is the best for them. Many software offers similar features and pricing, and there is almost no unique element that differentiates those tools.
Therefore, many SaaS companies depend on word of mouth and review to generate more potential customers, albeit this is deeply uncertain.
With that being said, there is a way to generate more leads without relying on customer reviews. It is an affiliate program.
Recommended post: Key Customer Success Metrics Every SaaS Company Should Measure
What Is Affiliate Program?
An affiliate program is a relationship between affiliates and merchants to bring leads or customers to a merchant’s site according to a specific agreement. In short, a merchant will pay affiliates for every click or purchase on its website through the affiliates’ site banner.
Understanding an affiliate page is considerably simple. Usually, a particular text banner that leads to a different site (merchants’ landing page) is present on the page.
Reasons Why SaaS Companies Needs Affiliate Program
The internet is saturated with a lot of SAAS products. When you are new in this business, it is hard to compete against popular names that are already present on many sites.
Using an affiliate program can help your SaaS companies get online recognition through many affiliates. So, here are some reasons why your SaaS company does need an affiliate program.
- Spread Awareness Better:
Spreading awareness is always one of the hardest parts of every new business. Without good branding, your SaaS company will sink down in a matter of time. In brief, audiences don’t know who you are and what you offer to them.
Often, affiliates use blogs to review your SaaS products. They will explain who you are thoroughly, unlike any other short anonymous reviews online. Your affiliate can speak the best of your services and indirectly promote them to their readers by placing a call-to-action to your official site.
The higher traffic the affiliates’ blog has, a higher chance of your SaaS company getting more leads. The higher possibility of the blog is on the first page of the search engine. In the end, it also gives you a more prominent online presence.
- Cut Marketing Cost:
Most of the time, the marketing department has the highest financial cost, among other job roles. In order to spread awareness, companies don’t think twice to burn the dollars for the sake of popularity.
Ads, for instance, sometimes requires six figures to produce a high-quality result that generates leads. However, a thousand bucks like explainer videos can also help SaaS companies promote the products without hassle.
Using an affiliate program also cuts your marketing cost as you only pay for the clicks through the affiliates’ site. You don’t need to spend more unless customers are purchasing from the affiliates’ banner.
- Reach Out to Targeted Audiences:
One of the marketing strategies is to find a targeted audience for your SaaS company. However, it takes time to analyze and check whether you meet the correct market. Because at the end of the day, your targeted audience is the place you are running your business for a long time.
Affiliates can do that for you.
First off, the affiliates have a website already for their own audience. These affiliates run a specific niche that is targeted to particular readers. And, most likely, they have a loyal reader keep up with their blogs.
These affiliates will help you reach out to a targeted audience without costing much money.
- Drive Traffic to Sites:
When you acquire more affiliates, there are significant links put on the affiliates’ sites. Not only it acts as an excellent inbound link, but it also drives you more traffic indirectly.
Since affiliate bloggers are happy to receive your SaaS company’s affiliate program, you allow them to put as many links as possible that directly go to your site.
If this happens, you will simultaneously acquire two benefits: rank better on the search engine page and generate more leads. Thanks to affiliates, you now can feed two birds with one scone.
- Increase in Revenue:
There is also a reason why this benefit is put at the end of this article. It is an indirect result of the above statements in order.
It begins with spreading more awareness to the targeted audience, leading to more traffic to your sites. All of these work continuously to generate leads and acquire customers.
The results you want to see is an increase in revenue. So, how does that happen?
Imagine already cutting the marketing cost by implementing affiliate programs to affiliates that share the same niche as your SaaS company. You don’t need to spend time learning about targeting a market since affiliates have one already.
Therefore, your affiliate programs can give you higher revenue with low-cost marketing and less-time spending on marketing plans.
An affiliate program is one of the marketing strategies many companies have incorporated into their plans. It is very effective in building awareness, especially for new businesses in the industry. It also enables readers into potential customers in a span of minutes by incorporating useful reviews about the SaaS company.
Your SaaS company does need an affiliate program if it’s hard to compete against competitors who share similar features and pricing. However, your key features should be interesting first to entice the audience to try out your products; only then can an affiliate program boost your sales.
Andre Oentoro is the founder of Breadnbeyond, an award-winning explainer video company. He helps businesses increase conversion rates, close more sales, and get positive ROI from explainer videos (in that order).