Affiliate marketing and Referral marketing
Mar 7, 2014 nitin_jenwal
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 .
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