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How do you pay SAAS affiliates / referrals?

Hi SAAS folks,

I have a question concerning how you deal with other folks who sell your software.

I've fallen into this more quickly than I expected as an ICT guy I was introduced to saw my MVP and immediately shared it with a client of his. This potential client likes it and we are going to do a demo, etc so landing the sale is on me.

However, this referral is 100% based upon the ICT guy's relationships and he may try to do this with other contacts he has.

So I want to make sure that he's compensated to recognize his efforts and also because my CAC is zero here apart from him. I was thinking 25% of first-year revenue might be a reasonable start point but I wanted to ask:

  • Does anyone here have a similar relationship?
  • What kind of compensation you offer?

(As a note, I don't want to have a big affiliate network but these enterprise contacts are valuable and speed up acquisition significantly so this would maybe be replaced a few times but I don't see a big network of folks hawking coupons for DCDR.)

Any thoughts are appreciated here

Thanks!
Andrew

on February 19, 2021