Customer Referrals for Your Affiliate Programs


Move over Affiliates - Customer Referrals are here

With the constant advancement in technology, people are always searching for ways to make everything easier and efficient. For instance, in this day and age, most businesses prefer to operate online as opposed to establishing premises on the ground. Online businesses have also abandoned all the traditional advertising methods such as using billboards or placing adverts in the newspapers.

Some of the new advertising and marketing techniques practiced by businesses today are affiliate marketing and referral programs. Affiliate marketing is practiced by very few businesses. In actual fact, this marketing technique is being wiped out each passing day and referral marketing is taking its place. Below are some recognizable shortcomings of affiliate marketing which has made this technique quite unpopular among many online businesses.


1.       The principle behind affiliate marketing is requesting customers to refer other people to your business. This is the same principle which is applied in referral marketing. The only difference only comes in when the affiliates have to be paid a commission in the event that sales are made through the affiliates.


2.       A company looking to employ the affiliate marketing technique must be ready to part with some money before they can make profit since all affiliates require payment.


All the above mentioned shortcomings and limitations have led to many online businesses adopting referral marketing strategies. A referral program is characterized by the rewards or incentives offered to either employees or customers in return for positive recommendations of the business to potential customers. There are several reasons why referral marketing has surpassed affiliate marketing in both efficiency and effectiveness.


1.       Most people would rather opt for a cheap marketing technique as opposed to an expensive one. Referral marketing depends solely on the word of mouth since customers recommend the products offered by a particular business to other acquaintances.


2.       The rewards and incentives given to customers or employees who have brought in a large list of referrals are not expensive. In actual fact, they are a small price to pay to get huge profits in your business.


In conclusion, referral marketing has been adopted by so many online retailers as opposed to affiliate marketing since it is a cheaper and more affordable than the latter.

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