Referral and Affiliate Marketing Explained » nTells

Referral and Affiliate Marketing Explained Referral and Affiliate Marketing Explained

Referral and Affiliate Marketing Explained » nTells

Referral and Affiliate Marketing Explained Referral and Affiliate Marketing Explained (nTells)

Referral and Affiliate Marketing Explained

By Francis Izuoba In Digital Marketing On 19th January 2020

Francis Izuoba
wrote in Digital Marketing
Posted on 19th January 2020
Last edited 4th January 2021 06:06:12 PM
Referral and Affiliate Marketing Explained

Another term for the referral program is affiliate model (Affiliate Marketing).

Affiliate Model

An Affiliate model is an automated electronic program which involves a Web advertiser and recruited web masters.

The webmasters known as the affiliates, place the company`s advertisements on their company`s or personal owned websites.

Affiliate models are responsible for generating a huge amount of visitors to a targeted website. For instance, many well-known Web retailers offer affiliate marketing models to thousands of Web site owners only when they agree to display the adverts/products of the retailer.

Affiliate programs include pay-per-lead, pay-per-click or pay-per-sale.

The products in affiliate models are linked to company websites and are referred to as affiliate links. Affiliates generally have to apply for the affiliate programs, though the majority of the affiliate programs support a free membership service. When a user clicks the affiliate link, the user is redirected to the advertiser`s website and if the user/customer makes a purchase, the affiliate is then paid a commission based on performance-based marketing.


What are the Types?

  1. Affiliate marketing

Affiliate Marketing refers to the internet marketing channel in which companies who offer a product or service pay publishers on a pay-for-performance basis. This means you`re only paid for results which could be a sale or a lead, unlike Google AdSense, here you don`t earn anything for clicks. In Affiliate Marketing has a structure like a win-win situation, advertisers pay only for results as they don`t have to shell out a large amount of money in Banner Advertising or Pay-Per-Click. In Affiliate marketing, results are guaranteed unlike Microsoft adCenter, Google AdWords or Yahoo Search Marketing and lots more.

  1. Referral marketing

Referral marketing is simply the process to promote, encourage and increase referrals from word of mouth, perhaps its the oldest and most trusted marketing strategy. Both online and offline this can be accomplished by encouraging and rewarding customers and a wide variety of other contacts to recommend products and services from consumers.

Note that web retailers offer a different structure of affiliates program methods.

Also Read Referral and Affiliate Marketing Explained

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