(02:34) "I really like that you’ve removed a lot of the initial friction. Many people I’ve worked with are hesitant about affiliate marketing due to setup fees or uncertainty about effectiveness. Your approach makes it easy for people to try out your network."

(02:58) "Yes, it’s a two-way benefit. SaaS companies can set up and test things for free, and by doing so, they invite their affiliates, which helps us grow our network. Affiliates can manage multiple programs from their dashboard, which supports our network's expansion."

(03:24) "It seems like you’re a fan of product-led growth."

(03:27) "Absolutely. We recently conducted a workshop on how to onboard affiliates, and although our initial approach was criticized, we’re planning to revise it in the next two weeks. Product-led growth is crucial, and even though I’m still learning, it’s a key focus for us."

(03:57) "A lot of people aren’t fully aware of the potential in B2B affiliate marketing. I heard you have a presentation with tips for B2B SaaS companies on starting and growing their affiliate programs. Many SaaS founders want to get started but aren’t sure how."

(04:24) "Yes, I always start with the basics and build up to more advanced topics. I apologize if some content seems basic to those already familiar, but it’s essential to cover these fundamentals. I’ll start at a high level and then dive deeper."

(05:00) "Let’s talk about the typical SaaS model. You create demand, people sign up, and if you have a free trial or freemium model, they may eventually convert to paid. Affiliate marketing works by having others market for you. The process remains the same: people sign up, potentially convert to paid, and you pay the affiliate a commission. This model is cost-effective because you only pay for actual conversions."

(06:03) "The key advantage of B2B SaaS affiliate marketing is the recurring revenue aspect, unlike B2C where commissions might be one-time. In B2B, the potential for ongoing revenue is higher, benefiting both the advertiser and the affiliate."

(06:27) "Exactly. That’s why we focus on B2B SaaS—there’s recurring revenue and higher ticket prices. Affiliates can invest more time and effort because they see greater returns compared to one-time commissions."

(06:51) "To recap, affiliate marketing is low risk because you only pay for performance. Having affiliates write about your product can influence prospects throughout their buying journey. It’s crucial to have affiliates who access your ideal customer profile (ICP) and to systemize your existing recommendations."

(07:48) "The buying process in SaaS is becoming decentralized, with various levels making purchase decisions. It’s important to be present everywhere, and platforms like NachoNacho can help increase your visibility."

(08:19) "It’s also important to understand what affiliate marketing isn’t. It’s not a quick fix or a magic bullet. It requires work, similar to SEO—more effort will yield better results over time. It’s not a passive revenue channel initially; it needs ongoing management and investment."

(09:43) "If you’re just starting out and haven’t received affiliate requests yet, focus on acquiring clients first. Make sure you understand your product’s bottlenecks, have social proof, and a clearly defined ICP. If you can’t sell your product yourself, don’t expect others to succeed at it."

(10:20) "Ensure you have paid clients and a solid understanding of your sales process before setting up an affiliate program. It’s important to have clear metrics and internal resources to manage and grow the program effectively."

(11:22) "Having internal resources dedicated to managing the affiliate program is crucial. It’s not something you can just set and forget. The more effort you invest, the better the results."

(11:52) "Conversion rates are also key. Affiliates drive traffic to your site, so your job is to convert that traffic into signups and paying clients. Better conversion rates lead to more satisfied affiliates and better program performance."

(12:25) "Set realistic goals, especially when starting. Don’t expect immediate results. While some clients see great results within six months, it’s important to manage expectations and invest time and effort."

(13:33) "Leverage networks that already have access to affiliates familiar with your ideal customer profile. Joining such networks can help you tap into a ready pool of affiliates who can easily start promoting your program."

(14:04) "Once you have the foundational steps in place, focus on growing your program. Start with a compelling offer and build from there." (14:43) "When determining an offer, like 20% for 12 months, it’s important to know the actual average revenue per account. Understanding where the 20% is calculated from and whether it’s attractive to the affiliate is crucial. For example, how much money can the affiliate actually earn from referring you? On your side, consider your customer acquisition cost and how it relates to what you’ll give away to the affiliate. Keep in mind that you’ll be doing less work to earn that revenue."

(15:15) "In your opinion, what constitutes a good offer? What are some of the trends you see among B2B SaaS companies regarding what they offer affiliates?"

(15:18) "It’s a tricky topic. The more niche or early-stage your company is, the higher the percentage you might offer. For example, some clients with lower average revenue per account, say between $10 and $100, have a large total addressable market. They might offer lower percentages but benefit from a broad market reach. On the other hand, if you’re in a specific niche and finding affiliates is challenging, you might need to offer a more attractive deal to get them on board. So, the offer should depend on your company’s stage, brand, and industry."

(16:18) "For an early-stage marketing software or CRM platform, where the average deal size might be around $50, starting with a 20% commission for 12 months could be a good approach. You could define tiers for growth. For instance, start with 20% for 12 months, but if an affiliate brings in five or ten paid clients, you could increase their commission to 30% for 12 months. If they bring in 50 clients, keep them at 20% but extend the commission period to 24 months. This way, you reward affiliates for their performance while maintaining a basic tier for everyone."

(17:24) "This approach aligns with the 80/20 rule, where 20% of affiliates generate 80% of the revenue. By focusing on high-performing affiliates, you can maximize your revenue."

(17:55) "Recruitment is a crucial aspect of setting up an affiliate program. One of the quickest wins is leveraging your current network. Try converting existing users of your app into affiliates. They already know your product and brand, making it easier for them to start recommending you. Expanding beyond your immediate network, find affiliates who are already familiar with your brand."

(18:24) "When onboarding new affiliates, especially if they are not familiar with your affiliate platform, it’s essential to provide a smooth experience. We are currently updating our onboarding process to make it easier. New affiliates will be auto-approved and provided with the necessary links and resources from the start. Ensure that you make it as simple as possible for them to start recommending your product."

(19:22) "Consider how you want your affiliates to promote your product. Is it through blogs, newsletters, or banners? Provide them with the resources they need to effectively promote you. For example, when recruiting affiliates based on keywords, focus on listings that appear on the first two pages of search results. This strategy can help you identify and engage with affiliates who are already active in your space." (19:57) "When looking for potential affiliates, you might find competitors, but also bloggers who rank well. I would recommend examining those who are already using affiliate links. Reach out to them with content related to your CRM tool and suggest they include your product in their blog. Offer them the opportunity to join your affiliate program, and let them know they can earn up to a certain amount by referring clients to you."

(20:26) "Recruitment can often be based on what potential affiliates are already writing about. You can find potential recruits by looking at articles related to your industry or products. Many bloggers have their contact information in their bios, and you can connect with them on LinkedIn as well. Pitch your affiliate program to these writers, especially if they are already discussing products like yours."

(20:49) "The advantage of this approach is that these bloggers already have traffic and a strong domain authority, which means you get valuable backlinks. Another recruitment strategy is to look at your competitors' affiliates. While we don't have time to delve deeply into this, tools like Ahrefs and SEMrush can help you analyze the backlinks of your competitors. Filter these backlinks to find those using affiliate links for similar CRM tools, and then reach out to those affiliates."

(21:17) "There are specific affiliate URL identifiers you can look for. For example, different networks use various parameters, like ?gr in the case of RS. Look for identifiers such as affiliate ID or ref in the URLs. While each network uses different identifiers, with experience, you'll quickly learn to spot them. If you need help, I'm happy to assist."

(22:50) "Another recruitment strategy is to find influencers or publishers who reach your ideal customer profile (ICP). For instance, if you find a publisher with a similar target audience, you could negotiate a hybrid deal where you pay an upfront fee for a listing or mention in their newsletter and offer a commission for any clients they refer. This approach helps you gain credibility and kickstart your program, as having well-known partners adds legitimacy to your affiliate program."

(23:24) "It's crucial to get things moving with effective recruitment strategies, as this can significantly impact the success of your affiliate program. Providing affiliates with the right resources is essential. Ensure they understand your target audience, your unique selling points, and offer them comprehensive onboarding materials, such as product demos and access to your tool."

(24:24) "To keep affiliates motivated, make sure to incentivize them based on their performance. If they refer several clients, consider boosting their commission or extending the reward period. Additionally, continuously optimize your program by tracking performance and ensuring no drop-offs in traffic or referrals. Regularly monitor and adjust as needed to maintain a healthy affiliate program." (25:29) "Make sure you have a dashboard to manage everything effectively. You should be able to track both overall and individual affiliate performance, including conversion rates. This is crucial for identifying any drops in performance, whether on a broad or individual level. This principle applies to any digital marketing channel. Ensuring that your conversions are dialed in is essential because if affiliates aren't converting their traffic, they won't remain in your program, which is detrimental for everyone involved."

(25:57) "In terms of metrics, track not only clicks and referrals but also the number of active affiliates in your program. Typically, about 20% of affiliates generate 80% of the revenue, so focus on those high-performing affiliates. For those who aren't contributing much, consider reviewing their performance. High-performing affiliates, such as agencies that refer clients on a one-to-one basis, might have better conversion rates, and working more closely with them could be beneficial. Additionally, monitoring these numbers helps prevent fraud and ensures accurate commission payouts."

(26:30) "As we wrap up, remember that having a solid foundation is critical before launching your affiliate program. Set realistic goals and ensure everything is optimized before scaling up. Once your brand is ready and your conversions are optimized, you can focus on growth. Follow steps six through ten for scaling effectively."

(27:06) "If you want to learn more about what we do, you can connect with me via my LinkedIn profile. You can scan the QR code or type in my name to reach out. I'm happy to chat or provide more information. Also, check out our podcast, where we had Andy as a guest. It’s called 'Grow Your B2B SaaS.'"

(27:38) "Looking ahead, our company is focused on expanding our network of B2B SaaS affiliates. We're currently growing our number of affiliates and soon plan to allow SaaS companies to run campaigns with affiliates directly. While high traffic and volume are important, our goal is to maintain a focus on quality, matching the right affiliates with the right companies. We’re also exploring AI to enhance these matches and improve our services."

(29:01) "We're excited about the upcoming updates and changes. As a startup, we prefer to plan a few months ahead rather than commit to a long-term roadmap. Our approach is to adapt quickly based on client feedback and emerging needs. This flexibility is crucial for early-stage startups, and we value our clients' insights to shape our product and strategy."

(29:58) "Given the fast pace and frequent changes, it's important to stay adaptable. I recommend our platform to anyone looking to enter the B2B affiliate market. NachoNacho is a customer, and I can personally vouch for the effectiveness of our solutions. If you're starting from scratch with your affiliate program, our network and tools can provide a great starting point. You can also find us on the NachoNacho Marketplace with a 25% cashback offer."

(30:57) "If you're experiencing growth challenges with an existing affiliate program, consider transitioning to our network. We can help you overcome these hurdles and boost your program's performance. Thanks again for joining us today. Take care, and don’t forget to get some rest. Cheers and thank you to everyone involved!"