Affiliate marketing in B2B SaaS explained

In this enlightening episode of the Tekpon SaaS Podcast, hosted by Cristian Dina, the spotlight is on affiliate marketing within the B2B SaaS space. The guest, Adam Glazer, the founder and president of Partner Commerce, shares his extensive knowledge and experience, providing a detailed and insightful look into how affiliate marketing can be leveraged effectively by B2B SaaS companies to drive growth and acquisition.

What is Partner Commerce?

The episode begins with an introduction to PartnerCommerce, an affiliate marketing agency specializing in the B2B SaaS sector. Adam shares how his agency has carved out a niche by helping notable brands like Google Workspace, Notion, and Dropbox develop robust partner and referral marketing programs. These programs are critical in generating demand and acquiring new customers, particularly as traditional paid media channels become increasingly saturated and costly.

A significant pain point that PartnerCommerce addresses for B2B SaaS companies is identifying, engaging, incentivizing, and enabling partners to create demand for their offerings. Adam emphasizes the limitations of paid media, noting its high cost and diminishing returns due to saturation and rising competition. He underscores the efficiency of affiliate marketing, where companies only pay for performance, thereby controlling the Customer Acquisition Cost more effectively.

Cristian delves into why companies should consider turning to PartnerCommerce rather than attempting to build their programs independently. Adam highlights the time-intensive nature of establishing and maintaining an extensive network of partners. Over a decade, PartnerCommerce has developed valuable relationships with numerous partners, a feat that would be challenging for companies to replicate quickly and efficiently. Their specialized focus on B2B, as opposed to the predominantly B2C market served by most affiliate marketing agencies, further distinguishes PartnerCommerce.

Affiliate marketing in B2B SaaS

The conversation also tackles a common misconception – that affiliate marketing is relatively new or unsuitable for B2B. Adam debunks this, sharing his ten years of expertise in the field. He explains the historical skepticism around B2B affiliate marketing, primarily due to the complex, prolonged sales cycles typical in B2B transactions. However, technological advancements have now made it possible to overcome these challenges, proving the efficacy of affiliate marketing for B2B SaaS companies.

Adam outlines vital indicators that suggest when a B2B SaaS company should consider an affiliate program. These include a large Total Addressable Market, targeting SMB or micro SMB audiences, and having a platform product rather than add-on products. He stresses the need for leadership support and a partner-led mentality to implement and manage affiliate marketing programs successfully.

Further, Adam details the various types of partners within the affiliate marketing umbrella, from resellers to referral partners. He provides examples, including influencers, publishers, software review comparison sites, member marketplaces, and agencies. Adam illustrates how each type of partner can contribute to driving demand and acquiring new customers through affiliate marketing.

Adam’s advice for companies considering starting an affiliate program is straightforward – just jump in and invest appropriately from the beginning. He underscores the long-term benefits and efficiency of well-managed affiliate marketing channels, emphasizing the importance of trust and advocacy from partner endorsements.

This episode is a treasure trove of information for B2B SaaS companies interested in exploring affiliate marketing. It offers practical insights, expert recommendations, and a clear roadmap for leveraging this powerful marketing channel.