Affiliate, referral and pay per lead programs - What's the difference?

Discussion in 'Affiliate Programs' started by CU_Designs, Mar 19, 2008.

  1. #1
    This thread was inspired by this thread. Anyone mind sharing their viewpoint on what the difference is between an affiliate program, a referral program (not to be mistaken for a pyramid scheme nor mlm) and a pay per lead program? Because in my view, they are all essentially the same thing with possibly very slight differences.

    Anyone? Please share your viewpoint.
     
    CU_Designs, Mar 19, 2008 IP
  2. nonyf

    nonyf Guest

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    #2
    It's true they're all very similar. Affiliate programs are usually run by networks of sites that aren't commonly owned - rather, an affiliate network brings the sites together so that they can be promoted via Affiliates.

    A referral program usually means an in-house affiliate program. It's not as professional in my experience and they're often for non-affiliate professionals. In other words, casual service users who just refer friends and participate in the program. The best example is Get Paid To and paid survey sites. You refer other members but you're not necessarily an affiliate that's promoting the sites professionally. I sometimes like the referral program better because they pay faster and the business relationship is more casual - which can mean better terms.
     
    nonyf, Mar 19, 2008 IP
  3. 5starAffiliates

    5starAffiliates Well-Known Member

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    #3
    Actually I think there are distinct differences and have a different viewpoint the the post above.

    There are all types of variations and shades of grey however in very simple terms here's the scoop

    affiliate program - pay per sale AFTER the consumer buys a product

    a referral program - that could be a regular affiliate program like above
    OR it could be referring other affiliates - which means instead of getting paid for selling yourself you get paid for recruiting other affiliates.

    pay per lead program - consumer doesn't need to pull out a credit card so conversions are sometimes higher.

    One other to add CPA Programs - Similar to affiliate programs, but CPA programs are typically pay per OFFER (or freebies or free trials or surveys) instead of pay per sale (on retail products.)

    Make sense?
    Anyone have anything to add?
     
    5starAffiliates, Mar 20, 2008 IP