How much does a SaaS referral actually pay
This is the only sector in the grid where the commission applies to revenue that repeats. So the question is not only how much, but for how long. The calculation below covers the first year.
Run the numbers with your own figures
The starting values are an example to show the mechanism, not a market average. Replace them with yours, the calculation updates itself.
The ranges actually observed
These are the ranges from our commission grid, word for word. Nothing forces you to follow them, they only say what is commonly practised.
| Case | Observed range |
|---|---|
| Software and subscription | 20 to 30 % of the first year, or a flat fee per signed customer |
Who pays what, plainly
You want to refer
0 €The referrer account is free, and it stays free. You track your referrals and your commissions without ever paying anything.
Create a free accountYou want to receive referrals
49,90 €The business pays for the tool. 49.90 € excl. VAT per month for an independent, no commitment, cancel in one click.
Ask a question on WhatsAppWhat justifies the commission, on the business side: tracking about 10,000 customers for almost three years, researchers measured that a referred customer is on average at least 16 % more valuable than a comparable customer acquired otherwise (Schmitt, Skiera and Van den Bulte, Journal of Marketing, 2011). On the referrer's side, recommending is not neutral either: at a cellular operator, customers who had referred someone saw their defection rate fall from 19 % to 7 % within a year (Garnefeld, Eggert, Helm and Tax, Journal of Marketing, 2013).
Frequently asked questions
First year only, or for life?
The first year is the most widespread and the healthiest practice. For life, the commission becomes a permanent charge on a customer you serve and support alone for years. If you go beyond a year, set a clear cap in the agreement.
What if the customer cancels after two months?
That is why you pay as revenue is collected rather than in one lump at signature. You only owe what you have actually collected.
Flat fee per customer or percentage?
A flat fee is clearer when your subscriptions all look alike. A percentage is fairer when contract sizes vary a lot.
Is this the same as a refer a friend programme?
No. A refer a friend programme rewards a customer who brings another, usually with a discount. Business referral is a commercial relationship, with an agreement and a cash commission.