Have you ever heard the terms “affiliate” or “referral program” thrown around online and wondered what it means? If so, it’s likely referencing what the online marketing community calls performance marketing. This is where website owners, customers, marketers, or anyone really get paid to promote products online. In most cases, the person promoting is knowledgeable about the product, knowledgeable about the related industry, and may even be a customer of that product.
Does This Cost the New Customer More Money Since the Company Pays the Promoter?
There are no additional costs to the new user when they sign up through an affiliate program. The company is paying the promoter (affiliate) a commission as a thank you for the new customer. Companies view this transaction as an advertising or marketing cost that is directly proportional to the amount of new business they earn. The company receives a new customer, the affiliate is paid a commission, and the customer is happy about learning and signing up for a new service. So everyone wins. In some cases, the new user receives a discount to sign up, which is the case with our affiliate program.