What is the difference between building a referral program and an affiliate program?

by 9 replies
11
Not talking about online stuff but in-person. I was told by a company that if I refer a client to them, I will get commission. I was wondering that type of program that is more profitable. And are there companies that specialize in either program.
#offline marketing #affiliate #building #difference #program #referral

  • Affiliates get part of the commission for selling a product for you. If you are talking about personal sales (not online) they are essentially a sales rep for you.

    A referral program is where people recommend you to others, where you then make a presentation to the referred person...whether you compensate the referrer or not.
    • [ 1 ] Thanks
  • Affiliate programs have commissions or some other form of compensation. Referral programs may have some other incentive, but not necessarily.
  • Referral program is more of sales rep where you are more committed to the product, you refer the person, you see to his/her satisfaction and do some follow up work to make sure he is satisfied but in affiliate program, you are committed to how much you are able to squeeze out of a prospect.
  • Think thats pretty the same?
  • It's the same difference right? You're getting a cut and that's all that matters.....
    • [1] reply

    • I always thought of a referral program as where the referrer wasn't selling your product. They are referring prospects to you, not customers.

      Affiliates are giving you customers.
  • In my opinion an affiliate identifies themselves with you while a referral relationship is one person introducing a potential client/relationship to you without being part of the business. It gets murky though.

    In my business(small business funding) we build relationships with bankers, cpas, internet marketers, attorneys etc in hopes of them generating businesses who need cash loans. The "carrot" is giving them a piece of the loan size when it funds. They will never identify with my organization, but it allows them to monetize their relationship(and also help a friend/client). IMO that's a "referral program".
  • hey therre

    affiliate marketing is like enlisting a reputable product to spread the word about you online offer, referral programs are based in personal interactions. It's like bumping into a friend on the street and having them share a great tip or piece of advice with you.
    Often called word of mouth marketing, are basic facts

    ok
    talk soon
    sam f
  • Well, the referral program is the process where you can promote your business through referrals with different-different clients. The affiliate program is the process where you can earn money with the help of online referral programs.
Join the discussion

Next Topics on Trending Feed