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  1. #1
    Member ishank's Avatar
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    October 18th, 2013
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    India
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    Affiliate Program Vs Referral Program ?
    What are some major differences between an affiliate Program and a referral program ?

  2. #2
    Newbie
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    December 9th, 2013
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    Atlanta,Ga
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    Affiliate programs tend to focus on website owners and larger audiences, it's more of a partnership than a relationship. The traffic generated by affiliate programs is visitors searching for products online, and has very little to do with any prior relationship between the product owner and the purchaser. Typically, the lead generated then belongs to the product owner and not the affiliate marketer. Higher traffic is usually needed since conversions are generally low due to the lack of relationship. But this should not be an issue if/when proper SEO is employed.

    Referral programs generally focus more heavily on customer engagement. It is more about building a strong relationship with your customer base to the point where begin to know, like and trust you. Here, you may be getting a marginally lower amount of leads, but because the relationship you are cultivating, referred customers are of higher quality, and will tend to purchase more readily. These customers usually are more likely to purchase larger ticket items and stay with continuity programs longer. Good SEO tactics can also increase the number of relationships you are building with current as well as potential customers/clients.

    Over the years, I have done both and continue to play in both sandboxes. Both have there place but they are two different animals. You may find that you are more suited to one than the other...

    Hope this helps!

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