At first glance referral marketing may sound very similar to affiliate marketing, but the truth is that they work in different ways.

Differences between affiliate and referral marketing

Affiliate networks are platforms that conglomerate a large number of websites in order to promote products through advertisements. They act as intermediaries between the affiliates (in this case the content creators) and the advertisers (the brands that need promotion).

Once both advertisers and web portals agree, these websites will place the ad on them in the form of a link, banner or any other format and, each time an action is generated with that ad, the advertiser brand will pay a commission. They usually have a broader target, that’s why we usually find them in blogs, social networks or YouTube videos.

On the other hand, referral marketing is based on a more direct relationship between the referrer and the referred person, generally between friends, family or acquaintances. In this way, they integrate new customers through a referral link, which can grant them different benefits (discounts, bonuses, prizes, etc.) that are obtained once the conversion is made. That is, once the referral has registered, generates a purchase or acquires a service, depending on the business model of the website.

Through this process of referral from one client to another, a starting point of greater trust and confidence is created for referrals.

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