Let’s suppose you use a reliable web hosting service for your own digital agency. You know that the web hosting provider is reliable and answers you 24/7. Convinced that the web hosting company will always deliver, you can recommend them to your existing customers – customers who might already be using your services, say social media marketing. The web hosting company keeps on paying you a commission until that customer stays with them.
Affiliate marketing is commonly confused with referral marketing, as both forms of marketing use third parties to drive sales to the retailer. The two forms of marketing are differentiated, however, in how they drive sales, where affiliate marketing relies purely on financial motivations, while referral marketing relies more on trust and personal relationships.[citation needed]
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