Zero to $100K Monthly Revenue-How VEED Launched a Successful Affiliate Program

[[divider]]

Challenge

Challenge of Scaling User Acquisition

As a rapidly growing AI-powered video creation platform, VEED was gaining traction in an increasingly competitive market. However, they faced the critical challenge of scaling user acquisition while maintaining reasonable customer acquisition costs. Traditional marketing channels were becoming saturated and expensive, limiting VEED's ability to reach new audiences efficiently.

Need for Affiliate Marketing Expertise

VEED recognized the potential of leveraging affiliate marketing to diversify their acquisition strategy, but they lacked the internal expertise and resources to build a program from scratch. They needed a partner who could not only establish a strong affiliate foundation but also scale it quickly to capitalize on the growing interest in AI-powered video tools. With ambitious growth targets for their subscription model, VEED required a strategic approach that would deliver immediate results while building sustainable long-term growth.

[[divider]]

The Strategy

In 2023, VEED chose Hamster Garage to run its affiliate program. They needed an agency that could build a strong foundation of diverse partners and support in building the program from the ground up. The Hamster Garage team quickly developed a comprehensive strategy focused on these key areas:

New partner recruitment:

Before working with Hamster Garage, VEED did not have an affiliate program. To establish a strong foundation, we prioritized recruiting a healthy mix of foundational partners across content, coupon, and niche sites. We developed a highly competitive commission structure that matched or exceeded offers from other brands in the space, including both monthly and recurring subscription payouts. Within two years, Hamster Garage onboarded over 1,000 partners, with over 200 becoming revenue-active. This strategy helped accelerate growth and scale the program efficiently, achieving net positive affiliate marketing costs and reaching the initial goal of 1,000 subscribers shortly after the program went live.

1. Dynamic Commission Strategy:

The team leveraged newly released platform features and capitalized on the growing AI momentum to drive program growth. This strategy included:

• Providing existing partners with additional resources and promotional tools
• Strategically reducing commission rates to improve cost efficiency
• Achieving 300+ incremental subscribers per quarter despite lower commissions

This approach allowed VEED to scale efficiently, optimize affiliate costs, and maintain strong performance.

2. Full-Funnel Approach:

The team implemented a balanced strategy targeting both upper and lower funnel partners. This approach helped:

• Drive a mix of immediate conversions and long-term brand awareness
• Optimize partner mix using ongoing conversion data analysis
• Maintain a diversified program not reliant on a single partner type

This ensured sustainable growth and maximized overall ROI.

3. Strategic Content Partnerships

The team built relationships with creators and content platforms aligned with VEED’s target audience. This approach focused on:

• Partnering with tutorial sites, content creators, and productivity bloggers
• Showcasing VEED’s capabilities through authentic, relevant content
• Driving high-quality traffic with strong intent and higher conversion rates

These efforts led to improved subscription retention and overall program performance.

[[divider]]

Results

In just one year, Hamster Garage transformed VEED’s affiliate program from non-existent to a reliable growth driver for the business. The program's success stands out for its fast-growth trajectory and ability to scale efficiently without sacrificing profitability.

Revenue growth:

• 175% YoY revenue growth in the first year
• Growing the program from $0 to $100,000 monthly recurring revenue without Chrome extension partners
• 150% YoY recurring subscriptions growth

Partner ecosystem expansion:

• 63% growth since start of HG management
• 200+ revenue-active partners
• Diverse mix of content, coupon, and niche sites ensuring program stability

Conversion optimization:

• 93% subscription purchases growth
• Conversion rate increased to 0.95% (33% growth since the start of the program)
• 12% growth in incremental subscribers

[[divider]]

Growth Summary

Affiliate Program as a Scalable Growth Engine

The partnership between VEED and Hamster Garage demonstrates how a strategically built affiliate program can become a significant growth engine for SaaS businesses. By establishing a diverse partner network and implementing a dynamic commission structure, Hamster Garage helped VEED achieve impressive growth metrics while maintaining efficiency.

Long-Term Impact Through Recurring Revenue Focus

What sets this success story apart is how quickly the program scaled from zero to becoming a substantial revenue driver. The focus on recurring subscription revenue rather than one-time purchases created a compounding effect that continues to benefit VEED long after initial partner activations. As AI-powered tools continue to gain popularity, the foundation built by Hamster Garage positions VEED to capitalize on market trends while maintaining favorable customer acquisition costs compared to traditional paid channels.