How Do Referral Marketing and Affiliate Marketing Differ?

Curious about what sets referral marketing apart from affiliate marketing? They may sound similar—both let you earn by sharing deals—but each serves a slightly different crowd and works in its own way.

Think of referral marketing as a “friends and family” approach. Brands encourage their loyal customers and fans to invite people they already know—think friends, relatives, or close colleagues. Typically, these referrers have first-hand experience with the app or service. The rewards you earn? Often credits, discounts, or bonus perks for both the referrer and the invited friend. Companies like ShopBack, Honey, and PayPal frequently offer such referral bonuses so everyone comes out ahead.

Now, affiliate marketing is more like running your own digital side hustle. This route is often taken by bloggers, YouTubers, and content creators—basically, anyone sharing links with a broader audience. Affiliates don’t necessarily need to have used the product themselves; their goal is to drive traffic and sales using special tracking links. Payment here is typically pure cash, not just credits or perks, and the tracking and reporting tools are usually more advanced. More rules, disclosures, and guidelines also come with the territory, since you’re earning commissions—sometimes enough to make it a full-time gig.

Quick Recap:

• Referral marketing: Share with people you know, usually for credits or rewards. Great if you love recommending apps you actually use, like Shopkick or Cashback Apps.
• Affiliate marketing: Promote to a wider audience for cash rewards. Perfect for those ready to create content and build passive income streams.

Still not sure which path fits you? If you just want to share your favorite finds with friends every so often, stick with referrals. But if you’re dreaming of turning your promo code prowess into a serious side income, dipping your toes into affiliate marketing might be your next move.