How Do SaaS Affiliate Commissions Work? (Recurring vs One-Time)
How SaaS affiliate commissions work
When you run an affiliate program for your SaaS, you pay a commission each time an affiliate refers a customer who becomes a paying subscriber. Two models dominate: recurring commissions and one-time commissions. Each one changes who you attract, how motivated they stay, and how long they keep promoting.
Recurring commissions
Affiliates earn a percentage of the referred customer's subscription payment every month, or every billing cycle, for as long as that customer remains active.
How it works in practice
- An affiliate refers a customer who signs up for your $100/month plan
- You offer a 20% recurring commission
- The affiliate earns $20 every month that customer stays subscribed
- If the customer stays for 24 months, the affiliate earns $480 total from that single referral
Why recurring commissions fit SaaS
Recurring commissions match your revenue model. Because your revenue arrives monthly, paying affiliates monthly keeps them focused on customers who stick around instead of signups that churn.
That acts as a quality filter. Affiliates promote to audiences who are a genuine fit, because their long-term earnings depend on retention.
Common recurring commission structures
- Percentage of MRR: the most common model, typically 15-30% of the monthly subscription fee
- Percentage with a cap: for example, 20% recurring for the first 12 months, then it stops
- Lifetime recurring: commissions continue for as long as the customer pays. This is the most attractive to affiliates
One-time commissions
Affiliates receive a single payment when the referred customer makes their first purchase or completes a specific action.
How it works in practice
- An affiliate refers a customer who signs up for your $100/month plan
- You offer a $200 one-time commission
- The affiliate receives $200 once, regardless of how long the customer stays
When one-time commissions make sense
One-time payouts work when your average customer lifetime value is high enough that a single payment is still attractive to affiliates. They are simpler to manage and easier to forecast.
The tradeoff is quality. Affiliates paid once tend to chase volume, and nothing in their payout depends on whether the customer stays.
Which model should you choose?
For most B2B SaaS companies, recurring commissions win on four counts:
- Better affiliate retention: income grows over time, so affiliates stay active longer
- Higher quality referrals: affiliates are incentivized to refer customers who will stick around
- Alignment with SaaS economics: your revenue is recurring, so your commission structure should be too
- Competitive advantage: most serious SaaS affiliates prefer recurring programs over one-time payouts
How commissions work in Reditus
Reditus supports both recurring and one-time commission structures. Here is the sequence behind the scenes:
- Tracking: when someone clicks an affiliate link and signs up, Reditus records the referral.
- Payment detection: when the referred customer makes a payment through Stripe or your connected payment processor, Reditus automatically detects it.
- Commission calculation: Reditus calculates the affiliate's earnings based on your commission settings.
- Recurring tracking: for recurring commissions, Reditus continues to track subsequent payments and generates new commissions each billing cycle.
- Payout: when commissions reach the payout threshold, they become eligible for payment to the affiliate.
Settings to decide before you launch
When you configure your affiliate program in Reditus, four settings shape the economics:
- Commission percentage: 15-25% is common for B2B SaaS. Higher rates attract more affiliates but reduce your margin.
- Cookie duration: how long after clicking an affiliate link the referral still counts. 30-90 days is standard.
- Payout threshold: the minimum amount before an affiliate can request payment.
- Tiered commissions: higher rates for top performers as they hit referral milestones.
For more on setting the right commission rate, see our guide on what is a good commission rate in B2B SaaS.
Frequently asked questions
What is the difference between recurring and one-time affiliate commissions?
A recurring commission pays the affiliate a percentage of every payment the referred customer makes, for a set duration such as 12 or 24 months. A one-time commission pays a single amount on the first sale. Because SaaS revenue is a subscription stream, recurring is the standard model in B2B SaaS: it ties the affiliate's earnings to customer quality, not just customer volume.
Why do B2B SaaS programs avoid one-time bounties and cost-per-lead payouts?
Two reasons. Fraud: a bounty larger than the first payment invites signup farming, and paying per lead invites form flooding, whereas a commission calculated on received payments means you only ever give away money you already earned. Motivation: an affiliate paid only on the first payment has no reason to care whether the customer sticks. One-time payments work well as activity bonuses on top of a recurring model, for example a fixed bonus for a published article or a newsletter placement, not as the model itself.
How long should recurring commissions last?
Established B2B SaaS programs commonly pay 12 or 24 months. Early-stage companies should offer more, a higher percentage and a longer duration, because affiliates take more risk promoting an unknown brand. Lifetime commissions mostly signal an early-stage or struggling program; from the affiliate's side, a capped term on a low-churn product is often worth more than lifetime on a high-churn one.
How much does a referred customer earn an affiliate?
Run the arithmetic the affiliate runs: monthly revenue per account, times the commission percentage, times the number of commissionable months. Then apply the ten-dollar test: an affiliate needs to earn roughly $10 per customer payment for promotion to be worth their effort. A $50 per month product at 20% clears it; a $19 product at 15% does not, regardless of how good the product is.