Not many people make a precise distinction between referral and affiliate marketing. After all, affiliates do refer customers to your business… right? Technically, affiliate marketing could be considered a subset of referral marketing.
In practice, though, referral and affiliate marketing are rather different ways of finding new customers.
Similarities:
Both drive new customers to your business through a group of people selling your product who don’t work for you directly (the advocates). This similarity is the reason that referral and affiliate marketing are often mistaken for one another.
But there’s something very different between the two that sets them apart.