The difference between referral and affiliate programs lies in who promotes your brand and how they’re rewarded.
Referral programs are designed for existing customers who recommend your products to people they know, such as friends, family, or colleagues. These programs rely on trust and personal relationships, often rewarding both the person who refers and the new customer (e.g., “Give $10, Get $10”).
Affiliate programs, on the other hand, are built for content creators, influencers, bloggers, or partners who promote your products to a larger audience. Affiliates earn a commission based on the number of clicks, leads, or sales they generate through their unique tracking links.
Key differences: Referral = personal, trust-based, usually two-sided rewards
Affiliate = professional, reach-based, usually one-sided commission
If you run an eCommerce business, you can benefit from offering both—referrals to leverage your customer base and affiliates to expand your reach through content and influencer marketing.