Affiliate Network
A platform that connects merchants (advertisers) with affiliates (publishers). In B2B SaaS, affiliate networks like Reditus provide a marketplace where SaaS companies can list their programs and affiliates can discover products to promote.
Understanding Affiliate Networks
Affiliate networks are intermediary platforms connecting merchants with publishers and affiliates willing to promote products for commission.
Networks like Impact, Awin, and CJ Affiliate serve as infrastructure providers, handling tracking, attribution, fraud detection, and payments for thousands of merchant-affiliate relationships simultaneously.
Rather than managing affiliate relationships directly, merchants join networks to access their existing pool of publishers. This model works particularly well for consumer brands but is gaining traction in B2B SaaS through niche networks specializing in software partnerships.
How Networks Differ from Direct Programs
Direct affiliate programs require you to recruit, manage, and pay affiliates independently. Networks handle all operational burden in exchange for network fees, typically 10-30% of commissions.
In return, networks provide:
- Built-in fraud detection that prevents the bot clicks and fake conversions plaguing direct programs
- Sophisticated attribution reporting and multi-touch tracking
- Transparent commission reconciliation
- Compliance and tax handling, which often matters once you pass 20 affiliates
The Tradeoffs of Joining a Network
Networks take a significant cut of commissions and may not understand your specific product or market positioning. Expect network commissions to be 15-25% higher than direct programs to account for network fees.
Activation is also uneven: networks typically see 30-50% of affiliates becoming active.
When to Use a Network
A network is the better choice when you:
- Lack internal resources for affiliate management
- Need immediate access to established publishers
- Require robust fraud prevention
When a Direct Program Works Better
Running your own program works better when you:
- Have strong affiliate recruitment capabilities
- Want to offer higher commissions to justify operational costs
- Operate in a niche market where network affiliates have limited expertise
Many SaaS companies run both simultaneously: a direct program for strategic partners and key accounts, plus a network program for scalable reach.
