It’s hard to ignore the powerful magnetizing appeal of a discount. People are always hunting for a bargain. Consumers worldwide are interested in special offers and deals when they shop. This makes coupon affiliate marketing an interesting strategy for SaaS companies.
It comes as no surprise that wondering whether to use coupons for your SaaS affiliate program is a common question asked by affiliate managers. And the short answer is: it depends on your goal.
Offering coupons can be a great way to drive short-term sales and sign-ups for your software as a service (SaaS) product. But they can also be a nightmare to manage if you’re not careful.
In this article, we’ll explore the pros and cons of using coupons in your SaaS affiliate program. We’ll also provide some tips on how to run a successful coupon affiliate campaign. First, let’s make sure we are on the same page about what we’re talking about when we say “coupon affiliate marketing.”
What is Coupon Affiliate Marketing?
Coupon affiliate marketing is simply offering coupons or discounts to people who promote your product. The affiliate then turns around and provides that coupon or discount in the form of a code to potential customers.
Different Types of Coupon Strategies for SaaS Affiliate Programs
There are different types of coupon strategies that you can use for your SaaS affiliate program. Here are some of the most popular.
- New customers – You can offer coupons to new customers who sign up for your product. This can be a great way to increase conversion rates and get people to use your product.
- Existing high-value customers – These can help you increase customer retention and loyalty.
- Influencers – You can offer coupons to social media influencers or bloggers who promote your product. This can help you reach a new audience and get more people interested in your product.
- Beta users – Beta users are a valuable for SaaS companies. They’re usually early adopters who are willing to pay full price for your product. You can offer them a coupon to sweeten the deal and encourage them to sign up for your beta program.
- Seasonal offers – Seasonal offers are a great way to increase sales during slow periods. You can offer coupons for Black Friday, Cyber Monday, or any other holiday that you think will be a good time to promote your product.
Pros of using coupon affiliate marketing
There are a few advantages to using coupon affiliates for your SaaS product:
1. Drive short-term sales and sign-ups
If your goal is to drive short-term sales and sign-ups, then coupons could be a great option. People are always looking for a good deal, so if you can offer them a discount on your site or through a trusted coupon affiliate, they’re more likely to take you up on it.
2. Reach new audiences
Coupon affiliates can also help you reach new audiences that you wouldn’t have otherwise had access to. If someone is searching for discounts on products like yours, they’re likely to come across a coupon affiliate site. And if you have an incredible offer, they might just click through and check out your product.
3. Create a sense of urgency
Urgency and scarcity are two of the most powerful psychological triggers when it comes to driving sales. If someone sees that a coupon is going to expire soon, they’re more likely to use it right away rather than wait and see if they can find a better deal elsewhere.
4. Break into a crowded marketplace
If you’re launching a new product into a crowded marketplace, coupons can help you stand out from the competition. Everyone is looking for a deal, so if you can offer them one, you’re more likely to get their attention.
5. Increase customer loyalty
If you offer coupons to existing customers, you can increase customer loyalty and retention. Customers appreciate being rewarded for their loyalty, and if you offer them a discount on your product, they’re more likely to stay with you.
Cons of using coupon affiliate marketing
There are also some disadvantages to using coupons in your SaaS affiliate program:
1. Coupon affiliate marketing can devalue your product
One of the biggest concerns with using coupons is that it can devalue your product in the eyes of potential customers. If people see that they can get a discount on your product, they might not think it’s worth the full price.
2. Discounts can attract low-quality leads
Coupons can also attract a lot of low-quality leads. Those only looking for a freebie or a bargain, with no intention of being lifetime customers. These leads are less likely to convert into paying customers, so you might end up wasting your time and money on them.
3. Coupons distributed by affiliate can be hard to track
Another downside of coupons is that they can be difficult to track. It can be hard to tell whether someone would have purchased your product without the coupon, so you might not be able to accurately measure the ROI of your coupon campaign.
4. Coupon affiliate marketing may add little value to unique products
If you have a unique product or service that doesn’t have many direct competitors, offering coupons may add little value. So, you may end up losing money on your coupons without attracting any new customers.
Tips for running a coupon affiliate marketing campaign
If you decide to use coupons in your SaaS affiliate program, there are a few things you can do to help ensure that your campaign is successful:
1. Offer an impressive discount
To attract attention, your coupon should offer a significant discount on your product. A 10% or 20% discount is usually enough to get people’s attention, but you might need to go higher if you’re in a competitive market.
2. Set expiration dates
Expiration dates can create a sense of urgency and encourage people to use the coupon right away. But be sure to give people enough time to use the coupon.
3. Audit coupon websites
If you choose to use coupon websites to promote your coupons, be sure to audit them first. You don’t want to partner with an affiliate that’s known for spamming people or promoting low-quality products. Some tried flags to look out for include a high number of outgoing links, low-quality content, and a lack of contact information.
4. Test different offers
To find the offer that works best, you’ll need to test different coupons and discounts. Try different values and expiration dates to see what gets the most responses. And be sure to track your results so you can see which offers are performing the best.
5. Limit the number of coupons
Finally, be sure to limit the number of coupons you offer. If you make too many coupons available, people will start to think that they’re not valuable. And if you make them too hard to get, people will give up trying. So find a happy medium between the two extremes.
Find more strategies for affiliate marketing in our guide to run an in-house affiliate program.