Referral, Affiliate or Partner: What Software Programs Pay Consultants
A plain guide to the 3 ways software companies pay consultants, what each one asks of you, and the questions to ask before you join.
There are 3 common models. A referral fee pays once for an introduction, often about 10% of the first year in enterprise software. An affiliate commission pays a share for a set period, usually for sharing a link. A partner revenue share pays on every payment for longer, in return for staying involved with the client.
The 3 models
- Referral fee. A one-time payment for an introduction that becomes a customer. In enterprise software it is typically about 10% of the first year only, according to the Partner Strategy Network.
- Affiliate commission. A share of what a customer pays, for a set period, usually earned by sharing a tracked link. Pipedrive, Shopify and Semrush, for example, run their affiliate tracks separately from their programs for service firms.
- Partner revenue share. A share of every payment over a longer period, paid to a firm that stays involved with the client. Programs for service firms usually ask for more involvement and pay more for it.
What to ask before you join
- What is the rate, and does it change after the first year?
- How long is it paid, and what ends it?
- Does it apply to the first engagement, to the subscription, or to both?
- What does the program expect you to do, and what does the vendor do?
- Can you bill the client for your own services?
How the SQOR Partner Program answers those
- The rate is 10% once for a referral, 20% for a partner, and 30% from the 6th partner client each year.
- A partner is paid for 3 years from the client’s launch, for as long as they stay in the program.
- A partner earns on the Proof of Value and every subscription payment, and a referral earns on the first-year subscription.
- The partner leads the client relationship, and SQOR.ai’s team does the technical work.
- Partners price their own services however they like, as long as the client pays SQOR.ai’s list price for SQOR.ai.
How the SQOR Partner Program pays
- Refer, 10% once. Introduce a client and step away, and you earn 10% of the client’s first-year subscription.
- Partner, 20% for 3 years. Stay in as the client’s lead contact, work with our team, and grow the account, and you earn 20% of the Proof of Value and every subscription payment for 3 years.
- Premier Partner, 30%. From your 6th partner client each year, the rate is 30%, for 3 years.
SQOR.ai engagements run $50K to $900K a year, and your share grows as the client adds teams, locations and use cases. Clients pay SQOR.ai’s list price, and anything you do for them beyond it is yours to price.
Sources and further reading
- Partner Strategy Network, What are typical partner incentive rates?
Questions answered
Frequently asked questions
What is a typical enterprise software referral fee?
About 10% of the customer's first year, paid once, according to the Partner Strategy Network. Programs that pay for longer usually ask the partner to stay involved with the client.
What is the difference between an affiliate and a partner?
An affiliate usually earns a commission for sending a customer through a tracked link. A partner usually works with the customer and the vendor after the sale, and is paid more, for longer, for that work.
Do software partner programs pay recurring commissions?
Some do. The SQOR Partner Program pays partners 20% to 30% of the Proof of Value and every subscription payment for 3 years, and pays a one-time 10% to anyone who only refers a client.