Affiliate Program Design

Commission modeling

Commission structures compared

How to set commission rates

1. Calculate your customer acquisition cost (CAC) from other channels (paid ads, content, sales). Your affiliate commission should be at or below this number.

2. Work backwards from LTV - If customer lifetime value is $5,000 and your target LTV:CAC ratio is 3:1, your max CAC is ~$1,667. Affiliate commission should be well under this.

3. Benchmark by industry:

   • SaaS: 15-30% of first year or 10-20% recurring
   • E-commerce: 5-15% per sale
   • Financial services: $50-200 per qualified lead
   • Education / courses: 20-50% per sale

4. Account for cookie duration - Longer cookies (90 days) cost more because they attribute more organic conversions to affiliates. Shorter cookies (30 days) are cheaper but less attractive to affiliates.

Commission calculator template

Inputs:
  Average contract value (ACV):           $[X]/year
  Average customer lifetime:              [X] years
  Customer LTV:                           $[X]
  Target LTV:CAC ratio:                   [3]:1
  Max acceptable CAC:                     $[X]
  Current blended CAC (non-affiliate):    $[X]

Commission options:
  A) Flat fee: $[X] per sale        -> Effective CAC: $[X]
  B) 20% of first year: $[X]       -> Effective CAC: $[X]
  C) 15% recurring x 12 months:    -> Effective CAC: $[X]

Recommendation: Option [X] because [reasoning]

Fraud prevention framework

Common affiliate fraud types

Prevention controls

Technical controls:
  - Require email verification before commission eligibility
  - Block commissions from disposable email domains
  - Set minimum conversion rate threshold (flag if < 0.5%)
  - Monitor for abnormal click patterns (> 1000 clicks, 0 conversions)
  - IP fingerprinting to detect self-referrals
  - Automated brand keyword monitoring (weekly)

Policy controls:
  - 30-day review window before any payout
  - Minimum payout threshold: $50-100
  - Clawback clause: refunds within 60 days reverse the commission
  - Prohibited tactics list in affiliate agreement:
    * Self-referrals
    * Brand keyword bidding (unless approved)
    * Coupon/deal sites (unless approved)
    * Incentivized traffic (pay-to-click, reward sites)
    * Cookie stuffing or forced clicks
    * Misleading claims about the product

Monitoring cadence:
  - Daily: Automated anomaly alerts (unusual click/conversion spikes)
  - Weekly: Brand keyword audit
  - Monthly: Manual review of top 20 affiliates by volume
  - Quarterly: Full program audit (terms compliance, fraud patterns)

Affiliate recruitment strategies

Where to find affiliates

Recruitment outreach template

Subject: Partner with [Your Company] - earn [X]% commission

Hi [Name],

I've been following your [blog/YouTube/podcast] on [topic] and really
enjoyed your [specific piece of content]. Your audience aligns well
with [Your Company]'s users.

We just launched our affiliate program and I think it could be a great
fit:

  - [X]% commission on every sale you refer
  - [X]-day cookie duration
  - Average earnings per referral: $[X]
  - Dedicated affiliate manager (me)
  - Custom landing pages and creative assets

A few of our affiliates are earning $[X]-[X]/month by [specific tactic -
e.g., including us in tool comparison posts].

Would you be open to a 15-minute call this week to discuss?

[Your name]
[Your title]

Affiliate onboarding sequence

Day 0:  Welcome email + portal access + getting started guide
Day 1:  Intro call with affiliate manager (15 min)
        - Walk through product value prop
        - Review commission structure
        - Share top-performing content strategies
Day 3:  Send creative asset pack (banners, email swipes, social copy)
Day 7:  Check-in email: "Have you placed your first link?"
Day 14: Share case study of successful affiliate
Day 21: Offer to create a custom landing page if they have > 1K audience
Day 30: First performance review - celebrate first conversions or
        troubleshoot if none

Platform selection guide

Key features to evaluate

Platform comparison

Build vs. buy decision framework

Build in-house if:

• You have unique attribution requirements
• Your commission structure is highly custom
• You process > 10,000 affiliate transactions/month
• You need deep integration with proprietary systems

Buy a platform if:

• You're launching your first affiliate program
• You need to move fast (< 4 weeks to launch)
• You want access to an existing affiliate network
• You have < 500 affiliates

Measuring affiliate program health

Key metrics

Monthly reporting template

AFFILIATE PROGRAM REPORT - [Month Year]

Program size:
  Total affiliates: [N]
  Active (1+ click): [N] ([X]%)
  Producing (1+ sale): [N] ([X]%)
  New this month: [N]

Revenue:
  Gross revenue from affiliates: $[X]
  Commissions paid: $[X]
  Net revenue: $[X]
  Effective CAC: $[X]

Performance:
  Total clicks: [N]
  Conversions: [N]
  Conversion rate: [X]%
  Avg EPC: $[X]

Top 5 affiliates:
  1. [Name] - $[X] revenue, [N] sales
  2. ...

Fraud / compliance:
  Flagged transactions: [N]
  Reversed commissions: $[X]
  Affiliates removed: [N]

Actions for next month:
  - [Recruitment, optimization, or policy changes]

Channel Program Operations

Partner portal features

A partner portal is the operational hub for channel partners. Build or buy a portal that includes these features, ordered by priority:

Must-have (launch with these)

1. Deal registration - Partners submit opportunities for approval, preventing channel conflict and securing their margin
2. Content library - Sales decks, battle cards, case studies, product sheets
3. Training / certification - On-demand courses with completion tracking
4. Lead distribution - Inbound leads routed to partners by geography or vertical
5. Commission / margin tracker - Real-time visibility into earned and pending payouts

Nice-to-have (add within 6 months)

6. Co-branded collateral generator - Partners add their logo to approved templates
7. Partner directory / locator - Public-facing partner finder for end customers
8. MDF request workflow - Submit, approve, and track marketing fund usage
9. Performance dashboard - Revenue, pipeline, certification status, tier progress
10. Community forum - Partners share best practices and ask questions

Portal platform options

Deal registration workflow

Deal registration prevents channel conflict (two partners or your direct team competing on the same deal) and gives partners confidence to invest in selling.

Registration flow

1. Partner submits deal via portal:
   - Customer name and domain
   - Opportunity size (estimated ARR)
   - Expected close date
   - Key contact at customer
   - Products / SKUs of interest

2. Auto-checks (immediate):
   - Is this customer already in another partner's pipeline? -> flag conflict
   - Is this customer already in direct sales pipeline? -> flag for review
   - Is the partner's certification current? -> block if expired

3. Partner manager reviews (within 48 hours):
   - Approve: Partner gets exclusivity for 90 days
   - Reject: Provide clear reason (duplicate, out of territory, etc.)
   - Conflict: Mediate between competing partners

4. Approved deal rules:
   - 90-day exclusivity window (extendable once by 30 days)
   - Partner must update deal status monthly or registration expires
   - If deal closes, partner receives tier-appropriate margin
   - If registration expires, deal returns to open pool

Channel conflict resolution

Certification programs

Sales certification (required for all partners)

Module 1: Product overview (30 min)
  - What the product does, who it's for
  - Key differentiators vs. competitors
  - Pricing and packaging

Module 2: ICP and discovery (45 min)
  - Ideal customer profile
  - Discovery questions to ask
  - Qualifying criteria (BANT / MEDDIC)

Module 3: Demo and pitch (45 min)
  - Standard demo flow
  - Handling top 5 objections
  - ROI calculator walkthrough

Module 4: Deal mechanics (30 min)
  - Deal registration process
  - Pricing and discounting guidelines
  - Order submission and provisioning

Assessment: 20-question quiz, 80% to pass
Validity: 12 months, then recertify

Technical certification (required for Gold+ partners)

Module 1: Architecture overview (1 hour)
  - System architecture and deployment models
  - Integration points and APIs
  - Security and compliance

Module 2: Implementation hands-on (2 hours)
  - Guided lab: deploy in test environment
  - Configure core features
  - Integrate with common tools (CRM, SSO, etc.)

Module 3: Troubleshooting (1 hour)
  - Common issues and resolution steps
  - Escalation path to vendor support
  - Log analysis and diagnostics

Assessment: Hands-on lab exam (deploy + configure + troubleshoot)
Validity: 12 months

Quarterly Business Review (QBR) template

QBR agenda (60 minutes)

[0:00-0:05]  Relationship check-in
[0:05-0:15]  Performance review (metrics vs. targets)
[0:15-0:25]  Pipeline review (top 5 opportunities)
[0:25-0:35]  Joint activities review + next quarter planning
[0:35-0:45]  Product roadmap update + partner feedback
[0:45-0:55]  Action items and commitments
[0:55-0:60]  Executive alignment check

QBR metrics dashboard

PARTNER: [Name]          TIER: [Silver/Gold/Platinum]
PERIOD: Q[X] [Year]      PARTNER MANAGER: [Name]

Revenue Performance
  Target:     $[X]
  Actual:     $[X]     ([X]% of target)
  QoQ growth: [+/- X]%
  Deals closed: [N]
  Average deal size: $[X]

Pipeline Health
  Registered deals: [N]
  Pipeline value: $[X]
  Win rate: [X]%
  Avg sales cycle: [N] days

Enablement
  Certified sales reps: [N] / [required]
  Certified technical staff: [N] / [required]
  Training hours completed: [N]

Engagement
  Deal registrations submitted: [N]
  Co-marketing activities: [N]
  Support escalations: [N]
  Portal logins (monthly avg): [N]

Tier Status
  Current: [tier]
  Next tier requirement: [what's needed]
  On track: [Yes/No]

Partner compensation models

Reseller margin

Partners buy at a discount and sell at list price (or their own markup):

Registered tier:  10-15% margin
Silver tier:      15-20% margin
Gold tier:        25-30% margin
Platinum tier:    30-40% margin

Deal registration bonus: +5% on registered deals
New logo bonus: +3% on first deal with a new customer
Multi-year bonus: +2% on 2-year deals, +5% on 3-year deals

Referral fee

Partners introduce leads but don't manage the sale:

Qualified referral: $500-2,000 flat fee per meeting that converts to opportunity
Closed-won referral: 10-15% of first-year contract value
Recurring referral: 5-10% for duration of contract (12-24 month cap)

Influence / co-sell credit

Partners assist in closing deals alongside your direct sales team:

Co-sell credit: 5-10% of deal value
Applied when partner provides: demo support, technical validation, or
executive introduction that materially advances the deal
Tracked via CRM field: "Partner Influenced" = Yes + partner name

Co-Marketing Playbook

Campaign types ranked by effort and ROI

Lead sharing mechanics

Before the campaign

Define these terms in writing before any joint activity:

1. Lead ownership - Who owns registrants? Options:

   • Both parties get all leads (most common for webinars)
   • Leads assigned by geography or company size
   • Leads assigned by first-touch attribution

2. Lead scoring criteria - Agree on what qualifies as an MQL:

   • Job title matches ICP (e.g., Director+ at 100-5000 employee companies)
   • Engaged with content (attended live, not just registered)
   • Company is not already in either partner's active pipeline

3. Follow-up rules:

   • Both parties follow up within 48 hours of event
   • No cold-calling the partner's existing customers
   • Shared leads tracked in a joint spreadsheet or CRM integration
   • Monthly reconciliation of lead status (contacted, meeting booked, closed)

Lead sharing agreement template

LEAD SHARING TERMS - [Campaign Name]

1. Both parties will share the full registration list within 24 hours
   of the campaign event.

2. Leads are classified as:
   - SHARED: Neither party has an existing relationship
   - OWNED-[Company A]: Already in Company A's CRM as active opportunity
   - OWNED-[Company B]: Already in Company B's CRM as active opportunity

3. SHARED leads may be contacted by both parties.
   OWNED leads may only be contacted by the owning party.

4. Neither party will add shared leads to automated email sequences
   without explicit opt-in at the event.

5. Both parties will report lead disposition (contacted / meeting /
   opportunity / closed-won / closed-lost) monthly for 6 months.

Co-branded content guidelines

Brand usage rules

• Always get written approval for logo usage before publishing
• Use the partner's official logo files (ask, don't screenshot)
• Both logos should appear at equal size and prominence
• Follow each company's brand guidelines for color, spacing, and placement
• Never modify the partner's logo (no recoloring, stretching, or effects)
• Include a disclaimer: "This content is a collaboration between [A] and [B]"

Content approval workflow

Step 1: Agree on topic and outline (both partners approve)
Step 2: One party creates first draft
Step 3: Partner reviews within 5 business days
Step 4: Revision cycle (max 2 rounds)
Step 5: Final approval from both marketing leads
Step 6: Publish simultaneously on both channels (or agree on primary host)

Co-branded content types and templates

Joint webinar run-of-show:

[0:00-0:02]  Host welcome + housekeeping (Company A moderator)
[0:02-0:05]  Problem framing (Company A speaker)
[0:05-0:20]  Solution deep dive (Company B speaker)
[0:20-0:35]  Live demo / case study (both speakers)
[0:35-0:45]  Q&A (moderated by Company A)
[0:45-0:47]  CTA: next steps, resources (both companies)
[0:47-0:48]  Close

Joint blog post structure:

Title: How [Company A] + [Company B] solve [specific problem]
Author: [Name from A] and [Name from B]

1. The problem (1-2 paragraphs - written by partner closer to the pain)
2. Why this requires both tools (1 paragraph - joint)
3. Step-by-step solution (3-5 steps with screenshots)
4. Results / proof point (metrics, case study quote)
5. CTA: Try it yourself (links to both products)

Market Development Funds (MDF)

What MDF covers

MDF is budget allocated to partners to fund joint marketing activities. Typical eligible expenses:

• Event sponsorship or booth fees
• Paid advertising for co-branded campaigns
• Content creation (videos, eBooks, case studies)
• Email marketing to partner's list
• Local meetups or workshops

MDF allocation model

Tier-based allocation:
  Silver partners:  Up to $2,500/quarter (requires 50% match)
  Gold partners:    Up to $10,000/quarter (requires 25% match)
  Platinum partners: Up to $50,000/quarter (custom terms)

Approval process:
  1. Partner submits MDF request (activity, budget, expected outcome)
  2. Partner manager reviews within 5 business days
  3. Approved funds disbursed after activity is completed + proof submitted
  4. Proof of execution: receipts, screenshots, lead list, metrics report

Clawback:
  - Unused approved MDF expires at end of quarter
  - Funds not substantiated with proof within 30 days are forfeited

Measuring co-marketing success

Metrics framework

Attribution approach

Use UTM parameters for all co-marketing links:

utm_source=partner
utm_medium=[campaign-type]  (webinar, ebook, event)
utm_campaign=[partner-name]-[campaign-name]
utm_content=[specific-asset]

Track in CRM with a custom field:

• Partner Source = partner name
• Partner Campaign = campaign name
• Partner Influence Type = sourced | influenced | accelerated