{"id":22775,"date":"2021-07-12T14:25:39","date_gmt":"2021-07-12T18:25:39","guid":{"rendered":"https:\/\/referralrock.com\/blog\/?p=22775"},"modified":"2024-07-02T14:06:50","modified_gmt":"2024-07-02T18:06:50","slug":"affiliate-vs-partner","status":"publish","type":"post","link":"https:\/\/referralrock.com\/blog\/affiliate-vs-partner\/","title":{"rendered":"Affiliate vs. Partner: What\u2019s the Difference Between Affiliate and Partner Marketing?"},"content":{"rendered":"\r\n\r\n\r\n<p>Affiliate vs. partner marketing \u2013 what\u2019s the difference? And which is best for your business?\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Affiliates and partners actually have more in common than you think. After all, affiliate marketing is considered a type of channel partnership. Still, a few distinct features set affiliate marketing apart from other channel partnerships.<\/p>\r\n\r\n\r\n\r\n<p>Today, we break down the similarities and differences between affiliates and partners. We also cover what sets affiliate and partner marketing apart from another closely related type, <a href=\"https:\/\/referralrock.com\/blog\/referral-marketing\/\" data-wpil-monitor-id=\"23\">referral marketing<\/a>.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Finally, we help you find out whether <a href=\"https:\/\/referralrock.com\/blog\/how-to-start-an-affiliate-program\/\">setting up an affiliate program,<\/a> channel partnership program, or a referral program is best for your unique business model.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Affiliate vs. partner marketing: The basics<\/h2>\r\n\r\n\r\n\r\n<p>What are affiliate marketing and partner marketing all about? Let\u2019s start with the basics:<\/p>\r\n\r\n\r\n\r\n<p>With <a href=\"https:\/\/referralrock.com\/blog\/affiliate-marketing-strategy\/ \">affiliate marketing<\/a>, you formally recruit bloggers, influencers, and other content creators as your affiliates to promote your products or services on their own channels. Each affiliate places links to your website on their own social media accounts, blogs, or websites. Every time someone clicks on an affiliate\u2019s link and makes a purchase, the affiliate earns a commission.<\/p>\r\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-34102 size-full\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2020\/09\/How-Affiliate-Marketing-Works.png\" alt=\"How affiliate marketing works\" width=\"700\" height=\"800\" title=\"\" srcset=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2020\/09\/How-Affiliate-Marketing-Works.png 700w, https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2020\/09\/How-Affiliate-Marketing-Works-263x300.png 263w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\r\n\r\n\r\n\r\n\r\n\r\n<p><a href=\"https:\/\/referralrock.com\/blog\/channel-partner-program\/\"><strong>Channel partner marketing<\/strong><\/a> (also called <a href=\"https:\/\/referralrock.com\/blog\/partner-marketing\/\"><strong>partner marketing<\/strong><\/a>) refers to any partnership with a third party that helps market and\/or sell the products or services of your company. This third party could be a business or an individual.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Types of channel partners can include:\u00a0<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Retailers: who sell your products through their own storefronts<\/li>\r\n<li>Wholesalers or distributors: who buy your products and then sell them to other retailers\u00a0<\/li>\r\n<li>Brokers: who help establish distribution relationships between companies\u00a0<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>And as we mentioned above, affiliates count as channel partners. Although they don\u2019t handle your products directly, they\u2019re still channel partners since they market your products in partnership with your company.<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image\"><img decoding=\"async\" class=\"wp-image-19329 aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2020\/11\/pasted-image-0-25.png\" alt=\"channel partner (distributor) profiles\" width=\"628\" height=\"454\" title=\"\" srcset=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2020\/11\/pasted-image-0-25.png 1003w, https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2020\/11\/pasted-image-0-25-300x217.png 300w\" sizes=\"(max-width: 628px) 100vw, 628px\" \/><\/figure>\r\n\r\n\r\n\r\n<p>Regardless of the type of partner, channel partners are usually rewarded for every sale they help you make as part of a channel partner incentive program. These incentives motivate partners to promote and generate more sales of your products.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Differences between affiliates and partners<\/h2>\r\n\r\n\r\n\r\n<p>Now let\u2019s break down the main differences between affiliates and partners in detail, to help you determine which type is right for your brand.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Their role in marketing and sales<\/h3>\r\n\r\n\r\n\r\n<figure class=\"wp-block-table\">\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td><strong>Affiliates<\/strong><\/td>\r\n<td><strong>Other partners<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<ul>\r\n<li>Content creators<\/li>\r\n<li>Marketers<\/li>\r\n<li>Often independent individuals<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td>\r\n<ul>\r\n<li>Usually tied to other businesses<\/li>\r\n<li>Involved in distribution and sales<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n\r\n\r\n\r\n<p>Affiliates are always content creators \u2013 bloggers, social media personalities, or website owners. They use their own content channels to promote and link to your brand. Many affiliates are individuals, but sometimes, digital publishing companies (like <a href=\"https:\/\/www.vox.com\/2017\/4\/24\/15379964\/buzzfeed-commerce-shopify-partnership-affiliate-network-links\" target=\"_blank\" rel=\"noopener\">Buzzfeed<\/a> and Wirecutter) are the affiliates of other companies (like Amazon). Affiliates don\u2019t need to have a personal experience with your brand. They simply need to highlight products their audience is likely to enjoy.<\/p>\r\n\r\n\r\n\r\n<p>Other types of channel partners aren\u2019t content-centric. They may help market your products, especially since they\u2019re incentivized for the sales that come through their efforts. But they\u2019re largely focused on distributing your products. For the most part, these channel partners are businesses (although they can be individuals from agencies). You\u2019ll likely work closely with sales team members from the business your company formed the agreement with.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">The sales channels they\u2019re involved with<\/h3>\r\n\r\n\r\n\r\n<figure class=\"wp-block-table\">\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td><strong>Affiliates<\/strong><\/td>\r\n<td><strong>Other partners<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Direct prospective buyers to your existing main sales channel<\/td>\r\n<td>Open up new points of sale where your products are distributed<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n\r\n\r\n\r\n<p>Most affiliates are focused on marketing your brand. They don&#8217;t open up new points of sale through distribution or retail. They don\u2019t physically hand off your products to buyers. Rather, affiliates are focused on directing traffic to the main sales channel \u2013 your company website \u2013 via affiliate links. This way, prospective buyers can still engage with your owned channels and purchase directly from your business.<\/p>\r\n\r\n\r\n\r\n<p>Meanwhile, channel partners are involved with lining up new channels where your products can be distributed and sold. For instance, retailers sell your products in their own stores, while distributors and wholesalers buy your products and get them into various retail outlets.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">The rewards they\u2019re offered<\/h3>\r\n\r\n\r\n\r\n<figure class=\"wp-block-table\">\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td><strong>Affiliates\u00a0<\/strong><\/td>\r\n<td><strong>Other partners<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cash commission on each sale<\/td>\r\n<td>Rebates, discounts, market development funds, sales performance incentives \u2013 not always cash<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n\r\n\r\n\r\n<p>Affiliates receive a <a href=\"https:\/\/referralrock.com\/blog\/affiliate-commission-rates\/\">commission rate<\/a> on each sale made through their affiliate links. This commission could be a percentage of the sale or a flat fee. But it\u2019s almost always paid out in cash, allowing affiliates to use their reward any way they please.<\/p>\r\n\r\n\r\n\r\n<p>Other <a href=\"https:\/\/referralrock.com\/blog\/channel-partner-incentive-program\/\">channel partner incentives<\/a> can take many forms, including, but not limited to, cash. How partners are rewarded all depends on the structure of your partnership. They might receive rebates and discounts on the products they buy and distribute. Or they could be paid with funds to boost their marketing and sales efforts.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Sometimes, sales reps at channel partner companies receive direct rewards for meeting certain sales goals. These rewards aren\u2019t always paid in cash. Often, they\u2019re gift cards, tech gadgets, or other luxury perks.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Similarities between affiliates and partners<\/h2>\r\n\r\n\r\n\r\n<p>Unsurprisingly, there are many similarities between affiliates and other partners (<a href=\"https:\/\/referralrock.com\/blog\/affiliate-partnerships\/\">since affiliates are a type of channel partnership<\/a>). Here\u2019s a run-through of what all affiliates and partners have in common.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">They both use the power of word-of-mouth marketing<\/h3>\r\n\r\n\r\n\r\n<p>It\u2019s no secret that prospective customers trust <a href=\"https:\/\/referralrock.com\/blog\/word-of-mouth-marketing\/\">word-of-mouth<\/a> recommendations far more than they trust ads directly from a business.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Channel partners, including affiliate partners, will formally recommend your products and services. And since partners are third parties (not employees of your business), their recommendations are more trusted and valued by the market.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">They both have a formal agreement with your brand\u00a0<\/h3>\r\n\r\n\r\n\r\n<p>All channel partners, including affiliates, must be carefully selected so you know they\u2019re ethical and effective at helping you reach the right audience.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Once you\u2019ve chosen the right partners, create a detailed channel partner agreement (sometimes called an <a href=\"https:\/\/referralrock.com\/blog\/affiliate-marketing-agreement\/\" data-wpil-monitor-id=\"163\">affiliate agreement<\/a>). This outlines the terms of the partnership, sets clear expectations, and protects your business if a partner engages in questionable behavior. Potential partners should read, understand, and sign this binding agreement before doing business with your company.<\/p>\r\n\r\n\r\n\r\n<p>What to include in the contract? We\u2019ve got you covered with our can\u2019t-miss guide to <a href=\"https:\/\/referralrock.com\/blog\/channel-partner-agreement\/\">channel partner agreements<\/a>.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">They both receive performance-based incentives<\/h3>\r\n\r\n\r\n\r\n<p>Both affiliate programs and other partner programs use performance-based compensation\u00a0 models, also called <a href=\"https:\/\/referralrock.com\/blog\/cpa-affiliate-marketing\/\">cost-per-action (CPA) models.<\/a> In this model, partners receive incentives based on the amount of sales they bring in.<\/p>\r\n\r\n\r\n\r\n<p>Affiliate partners receive commission on each sale. The more they sell, the more they earn. This model helps them stay motivated to promote your products and direct their audience to click on the affiliate links.<\/p>\r\n\r\n\r\n\r\n<p>Channel partner incentives are also performance-based. The more products they move, the more they earn.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Examples of performance-based incentives are scaled rebates and discounts, where the more someone buys from you, the more monetary benefits they can earn.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Whichever type of partnership you choose, performance-based incentives are a win-win for your partners and your business. Not only do they foster partner motivation and loyalty to your company, performance-based incentives also protect your bottom line.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>As marketing and sales are done on your behalf, you only need to pay once a desired action is completed: a successful sale, a completed sign up form, and the like. This means less customer acquisition cost (CAC) and risk for your business.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">They usually don\u2019t have a personal relationship with the prospective customer<\/h3>\r\n\r\n\r\n\r\n<p>Although affiliates and other channel partners are trusted among their own audience, they usually don\u2019t personally know the people they refer. Rather, they\u2019re focused on promoting and selling your products and services to anyone they think would benefit from your brand.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">They are (or should be!) closely tracked through software<\/h3>\r\n\r\n\r\n\r\n<p>Affiliate marketing relies on tracking traffic that comes from affiliate links to your website, and then sending the affiliate their earned reward whenever that traffic results in a sale.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>You can\u2019t track and reward affiliates without some sort of automated process. <a href=\"https:\/\/referralrock.com\/affiliate-marketing-software\/\">Affiliate marketing software is your best bet<\/a> because it gives you full control over your affiliate\u2019s data and other aspects of running an affiliate program. Plus, you won\u2019t have to pay the extra fees that existing affiliate networks charge for tracking.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Similarly, if you\u2019re running another type of <a href=\"https:\/\/referralrock.com\/blog\/what-is-a-partner-program\/\">channel partner program<\/a>, efficient sales tracking and attribution is key.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Using manual spreadsheets to track partner sales is time-consuming and can lead to human error. Most companies will use <a href=\"https:\/\/referralrock.com\/blog\/prm-software\/\">PRM software<\/a> (partner relationship management software) to help automate tracking and see exactly who is responsible for each sale. And since the software can be set to immediately distribute any channel partner incentives, it will help keep your partners happy.<\/p>\r\n\r\n\r\n\r\n<p><a href=\"https:\/\/referralrock.com\/\">Referral Rock<\/a>\u2019s software is flexible enough to be used for all types of affiliate, partner, or referral programs. We offer free demos and let you<a href=\"https:\/\/referralrock.com\/trial\/\"> start building your program for free<\/a>, so you can see first-hand how the platform scales your business growth.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Affiliates vs. partners vs. referrals<\/h2>\r\n\r\n\r\n\r\n<p>What about referral programs? How are they different from affiliate and partner programs?\u00a0<\/p>\r\n\r\n\r\n\r\n<p>All three types of programs depend on trackable word-of-mouth sharing, and all three offer performance-based incentives (making them all types of <a href=\"https:\/\/referralrock.com\/blog\/performance-marketing\/\">performance marketing<\/a>).\u00a0<\/p>\r\n\r\n\r\n\r\n<p>But there are a few major differences that set referral programs apart. Referral programs mobilize your existing customers to share your brand with their friends, colleagues, and family. They\u2019re more informal, since they don\u2019t involve detailed partner agreements.<\/p>\r\n\r\n\r\n\r\n<p>When someone engages in a referral program, they almost always refer someone they have a personal relationship with.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Referral program advocates don\u2019t usually bring in as many sales as affiliates or other partners would, but the relationship factor involved usually means these referrals end up being high-quality customers.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Check out our complete guide for more on the <a href=\"https:\/\/referralrock.com\/blog\/referral-program-vs-affiliate-programs\/\">differences between referral programs and affiliate programs<\/a>.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Affiliates, partners, or referrals: Which is best for your business?\u00a0<\/h3>\r\n\r\n\r\n\r\n<p>Use this handy table to help determine which type of program will work for your business \u2013 an affiliate program, other partner program, or referral program. Keep in mind, your business can run more than one type of program if it fits your needs.<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-table\">\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td><strong>Affiliate program\u00a0<\/strong><\/td>\r\n<td><strong>Channel partnership program<\/strong><\/td>\r\n<td><strong>Referral program\u00a0<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Affiliates bring in higher quantities of leads and sales, but of varied quality<\/td>\r\n<td>Channel partners bring in high quantities of leads and sales, but of varied quality<\/td>\r\n<td>Referrers (existing customers) bring in smaller numbers of higher-quality leads and sales\u00a0<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Better for established businesses: Cash-based commission fees make them less accessible to <a href=\"https:\/\/referralrock.com\/blog\/affiliate-marketing-for-small-businesses\/\">startups and small businesses<\/a><\/td>\r\n<td>Better for larger, established businesses: Costs make them less accessible to startups and small businesses<\/td>\r\n<td>Good for all types of businesses, from <a href=\"https:\/\/referralrock.com\/blog\/small-business-referral-program\/\">startups and small businesses<\/a> to enterprises<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Best if you want to tap into the authority of content creators to drive traffic from relevant audiences<\/td>\r\n<td>Best if your established business is looking to expand its distribution network<\/td>\r\n<td>Best if you want to mobilize customers as advocates, and reach others within their network<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Allows for quicker scaling<\/td>\r\n<td>Allows for quicker scaling through distribution<\/td>\r\n<td>Creates slower but steady growth<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Works well for businesses with wide appeal<\/td>\r\n<td>Works well for businesses with wide appeal\u00a0<\/td>\r\n<td>The better fit for businesses in very specific niches (compared to affiliates and partners)<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Wrapping up<\/h2>\r\n\r\n\r\n\r\n<p>Now that you know what <a href=\"https:\/\/referralrock.com\/blog\/affiliate-partnerships\/\">affiliate and partner programs<\/a> have in common, as well as what sets them apart, it\u2019s time to select the program that works best for you. Or, maybe you&#8217;ve realize a referral program is more suitable for your business.<\/p>\r\n\r\n\r\n\r\n<p>Whether you want to run an affiliate, partner, or referral program, <a href=\"https:\/\/referralrock.com\/\">Referral Rock<\/a> has you covered. See how our platform integrates into your existing workflow and optimizes the word of mouth you\u2019ve been missing.<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Affiliates and partners have more in common than you think. Learn the similarities and differences between affiliates and partners, and what sets affiliate and partner marketing apart from referral marketing.<\/p>\n","protected":false},"author":14,"featured_media":22778,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[5829,2579,2676],"tags":[5985,3270,5691],"class_list":["post-22775","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-affiliate-marketing","category-marketing","category-word-of-mouth-marketing","tag-key-takeaways","tag-affiliate-marketing","tag-channel-partner"],"acf":{"takeaway_1":"Affiliate marketing is a type of channel partnership, and affiliates are bound by a formal agreement just like other partners are.","takeaway_2":"Both affiliates and other partners receive performance-based incentives, and tend to refer people they don't have a personal relationship with.","takeaway_3":"Affiliates promote a brand in their content, but not all channel partnerships are content-centric."},"modified_by":"Jessica Huhn","_links":{"self":[{"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/posts\/22775","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/comments?post=22775"}],"version-history":[{"count":21,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/posts\/22775\/revisions"}],"predecessor-version":[{"id":37330,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/posts\/22775\/revisions\/37330"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/media\/22778"}],"wp:attachment":[{"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/media?parent=22775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/categories?post=22775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/tags?post=22775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}