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When high-growth SaaS companies ask me to audit their affiliate programs, I keep seeing the same alarming pattern:

Over 80% of their affiliate partners have never driven a single conversion.

Yet these companies are spending valuable time managing these "ghost partners" while missing the real growth opportunities right in front of them.

Here's the truth: Most affiliate programs are leaking money.

And it's not just the commission structure—it's the entire approach to partner management and who they approve into the channel.

I've seen programs filled with:

• Coupon affiliates who never drive new customers
• PPC brand bidders who steal attribution
• Extension hijacking that inflates commission costs

The real problem? Most teams don't even realize these partners are draining their program.

That's why after auditing 20+ programs across SaaS, I've developed a simple 4-question framework that reveals exactly where your program is breaking down:

1. What percentage of your partners are driving ANY traffic?

Most programs assume 15-20% activation is normal. It's not. Top programs hit 30-40% consistently.

2. What percentage are driving conversions?

The average is a dismal 8%. High-performers get this to 15%+ through better onboarding.

3. How much revenue comes from your top 10 partners?

If it's over 70%, you're sitting on a massive risk. One partner leaves = program collapse.

4. What's your approval-to-activation time?

Every day between approval and first promotion costs you money. Top programs get this under 14 days.

The value isn't just in asking these questions—it's in the patterns they reveal.

Of course, there are so many more questions to ask, but directionally, this is the way to think about things.

If you want to run your own audit (or have me take a look), reply to this email. I'll share the exact spreadsheet template I use to transform affiliate programs from cost centers to profit engines.

Until next week,

Nick

P.S. The most shocking stat from our latest audit? The client was spending 80% of their time managing partners that drove less than 5% of their revenue. That's the hidden cost nobody talks about.