Why Every Indie Founder Should Add an Affiliate Program to Their Product
You built a product people love. Now imagine if those same people got paid to tell others about it. That's the core idea behind running your own affiliate program, and it's one of the most underused growth levers for indie founders.
Shopify, ConvertKit, and Notion all run affiliate programs that drive thousands of new customers monthly. But you don't need to be a billion-dollar company to make this work. Solo founders are doing it too.
What Running Your Own Affiliate Program Means
You invite other people (users, bloggers, creators, partners) to promote your product using a unique referral link. When someone buys through that link, the affiliate earns a commission. You only pay when a sale happens. No sale, no cost. That makes it one of the most capital-efficient acquisition channels a bootstrapped founder can use.
Why It Works So Well for Indie Products
You Only Pay for Results
With ads, you pay for clicks regardless of whether they convert. With an affiliate program, you pay a percentage of actual revenue. The math always works in your favor.
Your Users Become Your Sales Team
Your happiest users already recommend your product in conversations, tweets, and community threads. An affiliate program gives them a reason to do it more deliberately. They write blog posts, create tutorials, mention you in newsletters, all because there's a financial incentive tied to something they were already doing.
A developer tools founder added a 20% recurring commission and within three months, five power users had collectively referred 120 new paying customers. Not professional marketers, just developers who loved the tool.
It Scales Without Scaling Your Team
An affiliate program gives you dozens (eventually hundreds) of people promoting your product without adding headcount. Each affiliate creates content and shares links on their own schedule. Your job is just to keep the program attractive and the product good.
Social Proof Multiplies
Every affiliate review or tutorial is social proof you didn't create. Independent reviews from real users carry more weight than any landing page copy.
What to Expect
Affiliate programs compound slowly. The first couple of months bring a handful of signups and a few referred customers. By month 3-6, engaged affiliates start producing content and referrals become consistent. By month 6-12, the channel can represent 10-20% of new customer acquisition. Mature programs often drive 20-40% of total new revenue, with acquisition costs 40-60% lower than paid ads.
How to Set It Up: Tools That Make It Easy
You don't need to build affiliate tracking from scratch. These platforms handle signups, link tracking, commission calculations, and payouts:
- Rewardful - Built for SaaS on Stripe. Handles recurring commissions automatically. Popular with indie founders.
- FirstPromoter - Stripe-friendly with a clean dashboard. Supports commission tiers and campaign tracking.
- PartnerStack - Includes a marketplace where affiliates discover your program. Better for scaling.
- Tolt - Lightweight, startup-focused. Integrates with Stripe and Paddle.
- Lemon Squeezy - If you already use it for payments, the built-in affiliate feature means zero extra setup.
Most take less than an afternoon to configure: add a tracking script, connect your payment provider, and create a signup page.
Setting the Right Commission Rate
Commission structure determines whether people actually promote or just sign up and forget.
Go with recurring commissions. Paying affiliates monthly for as long as the customer stays subscribed is far more attractive than a one-time payout and motivates genuine recommendations.
- 20-30% recurring is the sweet spot for SaaS. High enough to motivate, sustainable for your margins.
- Below 15% and most affiliates won't bother.
- Above 40% and your margins get squeezed. Reserve this for top performers.
Set your cookie window (how long after a click a purchase still counts) to at least 60 days. Longer cookies mean more attributed conversions and happier affiliates.
The Downsides You Should Know
Brand risk. Some affiliates will write misleading content or spam your link in places that hurt your reputation. You need clear program terms and the willingness to remove bad actors quickly.
Commission costs add up. At 25% recurring, a $49/month customer costs you $12.25/month indefinitely. Make sure your margins support it before launching.
Management overhead. You'll handle payout questions, update materials, and communicate with top affiliates. Budget a few hours per month.
Fraud exists. Self-referrals, cookie stuffing, and fake signups happen. Good platforms have fraud detection, but you'll still need to watch for unusual patterns.
Attribution is imperfect. A customer clicks an affiliate link but signs up later through Google. Who gets the credit? Accept some misattribution in both directions. It evens out.
Start Simple
You don't need a perfect program on day one. Start with this:
- Pick a tool (Rewardful or Tolt for most indie founders)
- Set commissions at 20-25% recurring
- Set a 60-day cookie window
- Add an "Affiliate Program" link to your website footer
- Announce it to your existing users via email and social media
- Write basic guidelines about what affiliates can and cannot do
That's enough to launch. Refine based on what you learn in the first few months.
Looking for ways to grow your product? Join the PeerPush community where indie makers share growth strategies and document their journeys. Submit your product and connect with founders who are figuring this out together.
Your best customers are already telling people about your product. An affiliate program just makes sure everyone benefits when they do.