Referral or affiliate?
Same link, different deal.
Both pay someone for bringing in a customer. Who that someone is, and what the rules expect of them, is where they split.
Side by side
| Referral program | Affiliate program | |
|---|---|---|
| Who it's for | Customers who already use the product. | People who promote products, often through a site, channel or newsletter. |
| How you join | Usually automatic once you have an account. | An application the company can turn down. |
| What you get | Credit, a discount, points or a cash bonus, often for both people. | A commission on sales or signups, usually for the affiliate only. |
| Where you can share | Often limited to people you know. Many programs ban coupon sites and ads. | Spelled out in the affiliate agreement. |
| Limits | Often a yearly cap on rewards. | Usually no cap, but a minimum balance before payout. |
| Telling people | Say you get something if they sign up. | A clear disclosure right next to the link. |
| Taxes | Cash rewards, especially from banks and brokerages, can be taxable. | Commission is income. |
The rule that covers both
If you get something for recommending a product, the Federal Trade Commission expects you to say so when you post about it publicly. A small ride credit counts, and so does a big commission.
Which one is this site about?
The first column: offers for customers and the friends they bring along.