Affiliate marketing vs Referral marketing ! Traversing the landscape of marketing programs can be tricky business, especially when industry terms overlap. Take affiliate marketing and referral marketing to drive new customer growth for your business.
referral marketing vs affiliate marketing
Affiliate marketing VS Referral marketing
Affiliate marketing tend to use more antiquated forms of media like email and PPC ads. They’re not contacting close friends, but rather looking for maximum exposure. Whereas a brand ambassador works mainly by social media platforms, text, and email, which makes sense, given the trust-based focus on peer-to-peer referrals.
An affiliate program will focus on website owners and large influencers—making it more of a partnership than a relationship. The traffic generated is visitors searching for products online, and has very little to do with a prior relationship. While you’ll be getting more traffic, your likelihood of conversion is lower due to the lack of a prior relationship.
Referral marketing focuses more heavily on customer engagement. It is building a strong relationship with your customer base to the point where they feel your brand is good enough to share with a colleague or friend. Here, because of the prior existing trust-based relationship, referred customers are of higher quality, meaning they’re more inclined to engage with your brand and make a purchase.
Although both forms of marketing accomplish the same goals, i.e. growing your business, nuanced differences require nuanced decisions on the type of structure your business develop and optimize.