You can't afford to pay for every customer acquisition
Pay creators a recurring commission for every customer they refer. They're motivated to promote you because they earn every month, not just once.
When to use
You have a product with recurring revenue and an audience of creators, bloggers, or consultants in your space.
Hypothesis template
If we offer [commission]% recurring commission to creators who refer customers, we'll get [target] affiliate signups because creators promote what earns them passive income.
Method
The problem: Paid ads are expensive. Influencer one-off posts have no lasting effect. You need a scalable, performance-based acquisition channel.
What ConvertKit does: Offers 30% recurring commission to affiliates. That means if a creator refers a customer paying $100/month, the creator earns $30/month as long as that customer stays. ConvertKit gets 24% of revenue from affiliates.
Why recurring commissions are magic:
- Affiliates are motivated long-term (not just a one-time post)
- They actively help referred users succeed (to reduce churn and protect their commission)
- Creates a compounding channel (more affiliates = more growth)
- Performance-based: you only pay for results
How to build it:
- Set a commission rate (20-30% recurring is competitive for SaaS)
- Use an affiliate platform (Rewardful, PartnerStack, or custom)
- Create affiliate resources (landing pages, email swipes, banners)
- Recruit your first affiliates from your best customers and industry creators
- Pay reliably and on time (affiliates talk to each other)
Who makes great affiliates:
- Your power users (they already love the product)
- Industry bloggers and YouTubers
- Course creators who teach your audience
- Newsletter writers in your space
- Consultants who recommend tools to clients
Key insight: The best affiliates aren't affiliate marketers—they're people who genuinely use and love your product. Start there.
Success metrics
- •Active affiliates
- •Revenue from affiliate channel
- •Cost per affiliate acquisition vs other channels
- •Affiliate-referred customer LTV
- •Affiliate retention (do they keep promoting?)
Prerequisites
- Recurring revenue model
- Affiliate tracking platform
- Marketing materials for affiliates
- Payment processing for commissions
Common pitfalls
- •Commission too low to motivate (below 20%)
- •Not paying on time
- •No resources for affiliates
- •Recruiting spammy affiliate marketers instead of genuine fans
- •Not tracking affiliate-referred user quality
Source: ConvertKit. 24% of revenue comes from 30% recurring affiliate commissions.
Suggested ICE scores
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