Most of people consider ‘affiliate marketing’ and ‘referral marketing’, are practically similar, but there are striking differences. There is only one similarity – Objectives. Both drives new customers, increase business revenues and provide great ROI on marketing investments.
Affiliate Marketing
Affiliate marketing is a way where one earns money by promoting someone else’s products in exchange for certain types of benefits. There are 3 kinds of people involved in this marketing:
Advertiser (Merchant), Publisher (Affiliate), and Customer.
Referral marketing is thus defined as a process where a person aware of a good service will refer the same to his/her friends, family, colleague etc. This is sometimes due to goodwill and sometimes due to some benefit the referee is gaining from this strategy.
Both forms of marketing – affiliate and referral — are powerful. Understand the uniqueness of both approaches and add in your marketing strategy to reap rewards from both strategies. It is important for business owner to give both approaches a chance.
Check out the Infographic – Comparison between Affiliate Marketing (AM) and Referral marketing (RM).
