I’ve been a Siteground affiliate for two and a half years now.
I’ve made well over $4000 by promoting their shared and WordPress managed hosting services.
Siteground has been my go-to choice for anyone willing to start a blog. I myself, have a Siteground shared hosting account.
Recently, I received an email from Siteground’s affiliate team. Which informed Siteground is suspending affiliate operation in India and low performing regions like it.
It says:
We would like to inform you that sadly, we’ve decided to discontinue the Affiliate program for your region and we will permanently suspend your SiteGround affiliate account on November 5, 2020.
Why close operations in your region?
Taking this decision was not easy for us as we have many loyal affiliates like you who have partnered with us for years. Unfortunately, due to a combination of poor performance indicators and the growing regulatory complexities in some regions, it becomes ineffective to support the program there.
Poor performance indicators
The affiliate relationship is a pay-for-performance model, where we pay for every sale we generate through our affiliate partners.
The commission rates typical for the hosting industry, which we offer to our partners, are among the highest out there and traditionally they exceed the value of the initial sale.
This is why we closely monitor KPIs such as referred accounts’ lifetime span and value and renewal rates, which determine our ability to secure a fair revenue share for our partners and the long-term sustainability of the program.
Unfortunately, our latest analysis indicates that overall, the sales coming from your region have deteriorating KPIs, including among others alarmingly low renewal rates, higher cancellation rate than program averages, and short life span of the referred accounts.
Regulatory and tax complexities
Another negative trend that we have been monitoring in your region and several others is the heavier regulations and growing tax complexities that impose an additional financial and bureaucratic burden on the program.
All these factors impose a growing financial risk for us and we can no longer guarantee the sustainability of the program in the long run.
That is why we have taken the hard decision to discontinue operations in your region and several others.
What does this mean for you?
- In 14 days time we will suspend your affiliate account which means that you no longer will be able to log into your Affiliate area. If you are a SiteGround client as well, you will still be able to access the User Area but you will no longer have access to its Affiliate section.
- Your outstanding affiliate sales, accumulated prior to the account suspension, will be processed as per our standard terms and conditions. All approved commissions will be duly paid out to you. No commission will be due for sales generated after the suspension date.
- We kindly ask you to remove all SiteGround-related information, including banners, logos, reviews, and links from your website prior to November 5, 2020, to prevent generating new affiliate sales and violating the SiteGround Affiliate ToS. As per section 9 of our ToS, we revoke your right to use our trademark and other brand items.
Finally, we would like to say a big thank you for partnering with us and recommending SiteGround! We wish you lots of success with your initiatives in the future!
Regards,
The SiteGround Team
My Thoughts on The Siteground’s Affiliate Program Closing
I’d love to see the KPI data. It’s hard to believe affiliates from India have a high churn rate.
Based on my personal expire, my referrals to Siteground have a 92% churn rate. In the previous quarters combined, I’ve referred 21 customers and only 1 of them canceled. That too was a cloud hosting customers.
My conversion rate is about 8% on average, and on good days way above 15%.
Siteground doesn’t have any coupons to offer a free trial. Which means it can’t be that coupon sites are sending low-quality leads.
This year in June, Siteground increased its pricing across all plans. It’s a huge bump.
Most beginners will compare Siteground to BlueHost and Hostgator, at least for a while. And when they see Siteground priced at almost double, they surely would not make a purchase.
Not to mention the ridiculous renewal rates. The initial pricing of Siteground’s basic hosting plan is $6.99/month. But when you renew it after the first term is over, the pricing becomes $14.99, which is more than double the initial hosting price.
With hundreds of web hosting options, it’s easy to guess not many people stick to Siteground once their first invoice term is over.
This isn’t Indian’s fault. It’s simply Siteground decided to increase pricing and left the market it dominated. Their pricing structure needs to be fixed.
Blaming Indian affiliates is a step, that sounds like a desperate move to make up for the losses. Which isn’t a good thing.
My affiliate sales fell drastically after the price change, and it was inevitable. It wasn’t a huge contributor to my monthly income, in fact, it isn’t even 5% of my quarterly affiliate revenue.
So this suspension isn’t a huge issue. I’ll still recommend Siteground, as long as they have their reputation live up to their performance.
Siteground is an amazing web hosting service. Their support is second to none among shared hosting providers.
I’d like to understand what tax implications were put on Siteground in terms of affiliate commissions and payouts. This could be a significant factor.
What are your thoughts on Siteground closing their affiliate program in India?
