Affiliate marketing and Referral marketing
Top 5 Difference between Affiliate marketing and Referral marketing
Affiliate marketing and Referral marketing both use third party sources for conversion. But both of them have different approaches . I have tried to minimize the confusion between the two . Below are top 5 features which differs implementation of both the strategies.
|Affiliate marketing||Referral marketing|
|The company has to pay a fixed percent amount to their affiliates.||Herein consumer refers to his/her friends or relatives for similar products he/she has used.|
|Affiliates or clients of the organization don't know each other personally.||It's mostly based on relationships between the referrer and their network.|
|A motivating factor over here is financial to drive sales.||A motivating factor over here is altruistic.|
|It's based on affiliate's own marketing efforts||It's based on referral personal experience of a product or service.|
|Techniques used in this case are most of the times is Search Engisne Optimization, Search Engine Marketing such as PPC, CPC, CPM and also email marketing.||The basic idea here is word of mouth. As social media is your personal tool to share with your closed one's is often used for the same.|
Whatever may be the reason, moto behind both approaches is to sell the product or service, along with passing the company's profit share with customer and increase its own revenue .