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Top Differences between referral program vs affiliate program

In this article, we will talk about the main aspects of referral marketing and affiliate marketing. Affiliate marketing is more like referral marketing, but you don't give out rewards for promotions. For more information read the article.

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Top Differences between referral program vs affiliate program

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  1. Top Differences between Referral Program vs. Affiliate Program

  2. The confusion between what a referral program is and what an affiliate program will always exist. Yes, both might be quite similar, but they are not the same. They do have the same motive of helping a brand grow, but they do differ from each other. There are few aspects specifically in which they are very different!In order to find out why and how they are different, let us first look at what they are, individually.Referral Program

  3. Referral marketing is similar to word-of-mouth marketing techniques. A company’s existing customers spread the word about the company and help bring more people on board. Customers are not paid under a referral program. However, having a referral incentive program in place can help the customers feel appreciated. As a result, they will end up working harder in the future. A company can give these rewards in the form of earnings, products or discounts. A referral link and a unique code are shared with the customers. The customer shares this link with their peer group to encourage them to sign up with the company. The moment a customer’s peer signs up with the company, the former gets the reward, listed under the referral incentive program.

  4. The main difference between affiliate marketing and referral marketing is that the advocate may or may not be a customer. Whomever the brand approaches, has to look solely into promoting the product. The advocate, in turn, receives a commission for the promotion that they do. Affiliate programs don’t usually give out rewards and instead use cash as an incentive for the promotion.An affiliate can help a company attract new customers with the help of their follower base. After the company is able to generate the traffic it wants, it can then pay the affiliate it had hired.

  5. 1. Customer Loyalty: Referral program: • When talking about referral programs, more loyalty exists. This is because the new customers who have joined the company were referred to by their trusted people. As a result, the chances of these new customers staying with the company for a longer time are higher. Affiliate Program: • Affiliate programs do not have that high a trust factor when compared to referral programs. Affiliates are not known to everyone they reach out to. This is why the chances of the new customers veering off are high!

  6. 2. The Audience: Referral Program: • Familiarity is a major factor that works in the favor of the brand in referral marketing programs. Existing customers are the ones who interact with their peers and convince them to become a part of a brand. This results in the formation of a stronger customer-brand as trust is the base of it all. Affiliate Program: • In an affiliate program, the affiliate might not know the customers personally. However, the customer could be following the affiliate. An example of this is when a social media influencer promotes a brand and their followers get influenced by it. There is little personal touch and direct interaction in even the best affiliate programs.

  7. 3. Promotional Mediums: Referral Programs: • Referral programs often contain referral links and a call to action. The customers of the company share these links with their peer group. The sharing medium can be anything from social media to WhatsApp groups. Affiliate programs: • Under an affiliate program, the products or services of a particular company can be shared through specific websites such as Jobsdive.com or blog posts. These blog posts or websites mention the brand and include affiliate links in them as well. The link then guides the audience to the brand’s website.

  8. 4. The Rewards: Referral Programs: • Customer who bring others on board the company is rewarded with an incentive. These incentives could include cash, discounts, coupons or even products. It is not necessary to include rewards in a referral program. However, a reward can encourage customers to help grow the brand with more diligence Affiliate Programs: • Often, the rewards that an affiliate gets under affiliate programs are in the form of cash. The affiliate earns a commission for the sales that they might have generated. Another form of reward might be to give the affiliate free products or services for bringing in sales for the company.

  9. What should a company choose? • It can get confusing for businesses and companies to choose between an affiliate program or a referral program. What needs to be kept in mind when picking one is the business goal. Both the affiliate programs and the referral programs use influence as a tool to bring in new customers. • If a brand wants to use its customer loyalty as a tool and encourage them too, then selecting a referral program is ideal. If, on the other hand, a company wants to use an influencer to promote the brand, then affiliate programs are ideal for it!

  10. Thank youFor more visit us at: https://medium.com/@jobsdive/top-differences-between-referral-program-vs-affiliate-program-8e010f3596b5

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