Difference between affiliate marketing and referral marketing.

[sonam]

Hi,
I just saw the affiliate marketing page of MilesWeb and found it interesting. But I have also read about referral marketing on other websites. So I am confused between both. Can anyone explain to me about these two terms?

[Ritu]

Marketing terms can be a bit confusing at times. As both affiliate marketing and referral marketing drives external customers to you, both are the types of indirect marketing, and both give high ROI on your marketing investment.
Let's see the difference between them:
Affiliate Marketing:
In affiliate marketing, you don't know the referred customer(targetted audience) in person, most of the time main purpose behind such marketing is to make profits.

Referral Marketing:
In referral marketing, you know the referred customer personally i.e s\he might be your friend, relative or colleague. The profit-making process, in this case, depends on a strong relationship you share with your targetted audience.

[Krishnan]

 In affiliate marketing, affiliate and customers don't know personally. e.g., from an affiliate  point of view, 'I will sell this product so that I can make a better living'
In referral marketing, referral and customers know each other personally. e.g., from a referral point of view,' I will tell about this product to my friend because I think it can make his living better'.
So, we can see affiliate marketing is done solely to make money. Whereas in referral marketing relationship is important over money.