Should You Start with Referrals or Affiliates First?
Most SaaS companies get more out of a referral program first, then add affiliates once the fundamentals are in place. Here is how to decide which one fits your stage.
Why start with referrals first
- Low barrier to entry: simple to set up in-app, with no complex partner management required.
- Referrals come from happy users who already trust your product.
- You confirm your ICP and messaging before recruiting external affiliates.
- Rewards like credits, discounts, and perks are often cheaper than cash commissions.
See also: What Is an In-App Referral Program?
When affiliates make sense first
- You already have an established brand, people know your product, and affiliates are ready to promote it.
- Strong marketing assets exist: landing pages, sales collateral, and clear ICP targeting.
- You need fast reach into new markets, where affiliates expose you to audiences you don't have direct access to.
See also: What Is a SaaS Affiliate Program?
Best practice: run both, sequentially
- Start with referrals at early stage to drive word-of-mouth.
- Layer in affiliates after hitting roughly $10k to $20k MRR and achieving PMF.
- Combine both for sustainable, diversified acquisition: customers drive virality, affiliates drive scale.
FAQ: referrals or affiliates first
Can I launch affiliates before referrals?
Possible, but risky if your ICP isn't clear. Affiliates may waste effort and lose trust.
When should I add affiliates?
Once churn is low, positioning is clear, and you have resources to support partners.
Do referrals still matter once affiliates are live?
Yes. Referrals remain a cheap, high-trust growth engine even at scale.
Can both programs run in parallel?
They can. Set clear attribution rules to avoid double-paying.
Relevant articles
- SaaS Affiliate vs Referral Program (Key Differences)
- Can You Run Referrals and Affiliates Together?
- When Should a SaaS Launch an Affiliate Program?
If referrals are your starting point, the setup is covered in the in-app referral program implementation guide.
If referrals come first for you, the referral strategy guide covers incentive design and the mistakes that kill programs early.