A Guide to Affiliate Marketing Tracking Methods for SaaS

Rivals are boosting revenue by 35% with better tracking! 

Says We Can Track. What’s your move? 

Affiliate Marketing is a partnership. 

You let others promote your software. They earn a percentage of the sales they generate. It’s a win-win. 

The major part of affiliate marketing is that-

“The team shares a special link and helps you get new customers.” 

Let’s say someone clicks the link and makes a purchase. The affiliate earns a reward (like a commission) for that.  It’s a simple way to grow business through others. 

But how do you know which team did the job? Brands mostly team up with several affiliates! 

Reason: more affiliates mean more reach and conversion. 

In such cases, you need Affiliate Marketing Tracking Software. It tells you (SaaS companies) 

• Who brought the customer

• How the team found them

• When the customer clicks the link

• Which campaigns are working and 

• How much to pay

It keeps everything clear, fair and organized. 

 

Why Tracking In Affiliate Marketing Matters For SaaS? 

Measure Affiliates Performance 

Ever wonder who your stars are?

Tracking pinpoints which affiliates bring in the most traffic, conversion, and sales. It helps you reward them with bonuses and commissions. 

That way, you can encourage more success. Plus, you can nurture those relationships through that. 

However, this depends on the tools. The more efficient they are, the better. 

For example, We Can Track says, 

“Advanced tracking tools can boost affiliate marketing results and revenues by up to 35%.”

So, ensure the tools have features like accurate referral attribution, real-time data analysis, auto-tracking partner activities, and campaign management. 

 

• Want a reliable boost? Increase revenues with TrackReward!

 

Optimize Fair Commission Payouts

How do you decide who gets what?

You want to be fair, right? Tracking tools help you with automated calculations and error-reduction features. 

With these, you can calculate the right commissions based on performance. That way, the team gets paid what they deserve. 

Everyone loves getting rewards for their hard work. The appreciation pushes them to continue promoting your products. 

A report by Influencer Marketing Hub highlights that “affiliates earn 20 to 70% commission from SaaS-based products”. 

Here, accurate tracking ensures you don’t underpay these valuable partners.

 

Identify Fraud and Bad Traffic 

Not all traffic is good traffic. 

Some partners may try to game the system. A good affiliate marketing tracking method identifies shady affiliates or fraudulent activity.

You can spot these bad actors and protect your bottom line. 

A study mentions that advertisers lost $3.4 billion to invalid traffic in digital affiliate marketing. [Source: Statista, 2022]

And such incidents still happen today.

Anura data shows some programs suffer from a 45% fraud rate. 

So, tracking is a must to prevent that. The tools use features like traffic monitoring, behavioral analytics, real-time reporting, and anomaly detection tools. These help you spot red flags so you can protect your investment.

 

Drive ROI and Conversion 

It’s always about the sales. That’s the ultimate goal.

Want to know if your marketing dollars are well spent? Tracking tools help with that. 

It reveals the performance of your return on investment (ROI) and conversion rates so you can boost these key metrics. 

A good tracking method involves analyzing which traffic sources convert best. The software tools process that. 

Be it social media or email campaigns, you can know where your sales come from through such tools. That way, you can allocate the budget accordingly and spend smarter. 

Because of such benefits, 94% of affiliate marketers use tracking tools to monitor every click, conversion, and sale. 

This ensures results like increased conversion rates by 28% and 32% more revenue generation. 

Attribution Models

Attribution models help track which marketing touchpoints lead to conversions in SaaS. 

It figures out which ads or links led to a sale, even if the customer clicked multiple things in their journey. 

There are 3 common models: 

First-touch Attribution

Credits the first touchpoint that brought the customer to your SaaS for the conversion. It's useful for measuring brand awareness

For instance, an ad click or a blog visit. 

Last-touch Attribution

Credits the final interaction before conversion. It shows which final touchpoint pushed the customer to make a decision. 

For instance, a referral link click. 

Multi-Touch Attribution

Distributes credit across all touchpoints. It provides a more detailed view of the customer journey and focuses on all interactions that contribute to a sale.

For instance, visits, retargeting ads, and the final email.

Let’s Compare the Touchpoints

Core Affiliate Marketing Tracking Methods

 

Cookie-Based Tracking

Cookies are like little breadcrumbs.

This means they are small pieces of data stored on a user's computer.

When someone clicks on an affiliate link, a small cookie (text file) drops into the browser. This cookie helps track actions like making a purchase. 

Cookies also hold information like the affiliate ID. It helps identify who should earn the commission for a sale.

If they buy within a set time (like 30 days), the affiliate gets credit. 

Best for

• Short sales cycles and quick sign-ups

Server-to-Server Tracking

Servers talk directly. No middleman.

Server-to-Server Tracking connects directly between the affiliate and the advertiser’s server. It typically works through Postback URLs. 

These are special links or automated messages sent from your system (like an ad network) to an affiliate platform when a conversion happens. It can be sales or sign-ups.

When a user clicks that link, data flows smoothly without relying on the browser. It creates a direct link that’s less susceptible to ad blockers. 

After the conversion, the system automatically pings the affiliate with a postback URL. It’s like an instant confirmation text. 

So, you can call it a reliable affiliate marketing tracking method.

Best for

• High-volume and all kinds of tracking

 

Pixel Tracking

Little invisible images fire when a sale happens.

Pixel tracking uses a tiny piece of code, script, or image (the pixel) on the thank-you page. The pixel fires when an action happens, like a purchase. 

This sends data from the user’s browser to the tracking system that confirms the sale and the affiliate’s referral.

It’s like sending a little note saying, “Hey, I just visited!”

Best for

• High-ticket SaaS with longer sales cycles

SubID Tracking

Affiliates add SubIDs to links.

SubID tracking gives each affiliate link a unique identifier. It means the team gets a distinct code added to their tracking link. 

This helps with better tracking of performance, source, clicks, and sales.

With this method, you can track multiple campaigns or links from the same affiliate.

Best for

• SaaS with multiple marketing channels.

 

IP and Device Fingerprinting 

Tracks devices. Even if cookies vanish.

IP and Device Fingerprinting method identifies users based on factors like their IP address, device type, and browser. It’s like a digital fingerprint.

The tools create a “fingerprint” to match conversions back to affiliates. There’s no relying on cookies. 

When a user visits your site, they are tagged with identifying information. This helps track them through their interactions.

Best for

• Fraud detection and backup tracking.

How To Choose The Right Tracking Method For SaaS?

Sales Cycle Length 

How long does it take to close a sale?

If your product has a short sales cycle (like tools people buy after one visit), use simple tracking. A basic cookie-based tracking will suffice. 

But if it’s long and it takes 30 to 90 days to see a conversion, grab a more advanced tracking setup. 

People will come back multiple times before buying. In such cases, look for a tool that remembers users for a long time. 

One example is Server-side or Pixel Tracking. 

Since cookies expire and get deleted, such methods don’t work that way. Instead, they rely on direct connections. 

For a longer sales cycle, look for features that:

• Support multiple session tracking and 

• Store affiliate data

• Remember for longer

They keep track of who referred the user, even if they come back after a month. 

Customer Journey Complexity 

Is it a straight line or a maze? 

Some SaaS products are simple- visitors click and buy, done. Others have multiple steps- demo requests, webinars, emails, sales calls, and trials. Then the final conversion. 

If your customers go through multiple touchpoints, the journey is more complex. 

For that, you need tracking that follows users across pages, platforms, and even devices. 

You want to know if the affiliate (who brought the buyers) still gets credit even if the conversion happens weeks later. Because something simple may miss the full picture and track accuracy. 

Go for a method that supports cross-device and cross-platform tracking. One that has multi-touch attribution features. You can try SubID or Fingerprint tracking in these cases. 

Integration With CRM and Analytics Tools

Ensure everything talks to each other.

Your tracking tool should work well with your customer relationship management and analytics software. So, pick one that sends data straight to the existing tool's dashboard. 

Tools as in:

• HubSpot

• Salesforce

• Google Analytics 

That way, your marketing and sales team can see everything, the journey, process, and action. Plus, you don’t have to copy-paste data manually. 

It’s better when data flows smoothly from the affiliate click to the final sale. 

Look for tracking tools with built-in integrations and easy APIs. They help you save time, make reporting easier, and reduce errors.

Avoid tools that don’t connect easily. 

Type of Conversion 

Know what you’re tracking. 

Is it-

• Leads?

• Trials?

• Paid signups? 

• Everything? 

Not every SaaS counts a conversion the same way. 

Some track free trials. Some only care about signups. Many of you may want both. 

Pick a tool that can track your kind of conversion. It should support multiple conversion types and delayed payouts. 

Flexibility with Payout Rules

Can your tracking tool handle your payment style?

Some SaaS companies pay affiliates once per customer. Others pay monthly if the user stays. Some even want to give bonuses.

So, pick a tool that lets you set rules. The ones that fit your model. 

For instance, you may pay $50 for each signup, but only if the customer sticks around for 3 months. Or pay 20% monthly as long as the user pays. 

Your tool should support unique scenarios in payout systems without needing a developer to code everything. 

Popular Affiliate Tracking Software For SaaS

 

• Want the most effective affiliate tracking tool? Try TrackReward!

Compliance and Privacy Considerations

Break the rules? Face penalties. 

There are three you must be aware of- GDPR, CCPA, and FTC

• GDPR focuses on the protection of EU citizens' data. 

• CCPA regulates the personal information of California residents.

• The Federal Trade Commission needs affiliates to disclose their relationship with brands when promoting. 

These laws set strict guidelines on data collection and usage. Your tracking methods need to be compliant with them. Breaching them can mean hefty fines.

 

What To Do? 

Transparency About Data Usage

Tell users what you track.

Keep things clear with your affiliates and customers about how you use their data. Transparency builds trust! 

Happy affiliates lead to better partnerships!

Decide how long to keep the data and when to delete it. Stick to that decision. This keeps your business safe and compliant.

Data Retention Policies

Clearly state your data usage policies. 

Ensure everyone understands how tracking works, especially about cookies and personal identifiers.

This helps you stay compliant while keeping the data clean. 

Regularly audit your data retention practices. Make sure you’re only keeping what you need and remove all unnecessary data properly.

Don’t hoard data. Delete logs after 6-12 months.

Common Tracking Challenges and Solutions 

5 Best Practices For SaaS Affiliate Tracking 

Use Multiple Tracking Methods For Redundancy 

Multiple methods give you backups. Always have a plan B! For example, Cookies and pixels mean a safety net.

Regularly Audit Affiliate Links and Conversion

Keep an eye on things. Catch errors before affiliates do. Regular checks save headaches later! 

Implement Fraud Detection Mechanisms 

Keep your system safe. Block bots. Save money.

Ensure Compliance With Data Privacy Laws

Stay updated on changes. Keep data safe and sound.

Provide Affiliates with Real-Time Reporting 

Affiliates love seeing their stats. Real-time data keeps them motivated!

Future Trends

• AI and Machine Learning for Fraud Detection: Catching shady bots

• Blockchain-based Tracking Solutions: Ensuring unhackable sales records.

• Enhanced Cross-Device and Cross-Platform Tracking: Tabs, phones, and tablets, are all connected.

 

FAQ: Affiliate Marketing Tracking Methods for SaaS

Does affiliate marketing work for SaaS?

Of course! Affiliate marketing is a super-effective strategy for SaaS companies, mostly for B2C products and sometimes for B2B. You need a good affiliate tracking tool like TrackReward for proper monitoring, accurate reports, and fair payouts. 

How do you track affiliate marketing?

Track affiliate marketing with tools like TrackReward that use unique links, cookies, or pixel tracking. They monitor the performance of affiliates. That way, you understand which affiliates are driving the most traffic, conversions, and sales. 

What is the 80/20 rule in affiliate marketing?

The 80/20 rule is also known as the Pareto principle. It means that 80% of your affiliate income comes from 20% of the products or services you promote. 

How do I find affiliates for my SaaS?

First, build a strong affiliate program and actively seek out potential partners. Promote your program in SaaS review websites and social media. Identify and recruit affiliates. Maintain open communication and consider tiered commission structures. That’s how you find affiliates for SaaS. 

How to track affiliate links for free?

Consider Google Analytics, Bitly, or UTM parameters. They ensure affiliate marketing tracking methods for saas free. 

What are the most reliable affiliate tracking tools for SaaS? 

TrackReward. That’s one of the best affiliate marketing tracking methods for SaaS.