Web hosting provider PEER 1 Hosting announced on Tuesday that it has enhanced its SMART Partner Program, moving away from a four-tier revenue-commitment model to a two-tier performance-based model.
This move comes less than a week after PEER 1′s public cloud division Zunicore announced that it has registered 3,700 businesses in four months.
The new program has no minimum monthly requirement and offers referral partners a monthly commission for the life of the original contract, according to the press release. When partners exceed $15,000 in referred monthly recurring revenue, they are upgraded to the SMART+ program and their commissions become evergreen.
As web hosts make a considerable portion of revenue from affiliate programs, creating more incentives for affiliate partners makes sense. PEER 1 says the majority of its business is made through referrals. PEER 1 says the new model will help referral partners succeed, and in the press release, it says with the previous program, on a $5000 deal, partners at the bronze level would earn a one-time commission of $2,500. With the new SMART program, partners will earn $9,600 over two years, or an increase of 300 percent.
“PEER 1 Hosting is committed to our partners and by eliminating the upfront revenue commitment, we believe it gives our partners a better model to do business,” Jose Santos, director, Alliance and partner programs, PEER 1 Hosting said in a statement. “We value the relationships that we have with our referral partners and we want to reward those who are high performing. The new SMART program allows us to do that.”
According to PEER 1, the new SMART partner program includes easy back office management so partners can calculate their commissions every month as there is no annual partner audit, and commission rates are steady month-to-month.
The new performance-based model provides partners an eight percent revenue share for the term of the original contract, and SMART+ program offers 12 percent revenue share that is evergreen.
Dedicated channel representatives will work with partners to provide marketing support to drive more referrals, and the Partner Portal now features a co-branded collateral plug-in to allow partners to upload their logos and contact information.
PEER 1 has also launched regional referral events to bring together customers and PEER 1 Hosting’s contacts for targeted networking.
Talk back: How do you perceive these changes made by PEER 1? Are you a PEER 1 affiliate partner, and if so, how will these changes affect you? Let us know in the comments.