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:

1. Tracking: when someone clicks an affiliate link and signs up, Reditus records the referral.
2. Payment detection: when the referred customer makes a payment through Stripe or your connected payment processor, Reditus automatically detects it.
3. Commission calculation: Reditus calculates the affiliate's earnings based on your commission settings.
4. Recurring tracking: for recurring commissions, Reditus continues to track subsequent payments and generates new commissions each billing cycle.
5. 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.