What are Referrals?

A referral program allows your existing students to refer your courses to their friends and community using a unique referral link.

When a student refers a friend, both the student and the friend receive a reward. The friend gets a discount on their purchase, while the student gets a discount they can redeem against future purchases on your school.

Benefits of setting up a referral system:

• Word-of-mouth marketing - Referrals leverage the trust and existing relationships your students have with their friends and community.

• Higher conversion rates - Referred friends are more likely to buy because they trust the recommendation. The "persuasion legwork" has been done for you.

• A "win win win" situation - All parties benefit (you get more sales, the student gets a reward, and the friend gets a discount).

Example: Imagine you offer a gardening course on Teachable. Your student, Jane, refers her friend, Mark, using her referral link. Mark gets a 10% discount on the course, and Jane receives a 20% credit towards her next purchase.

What are Affiliates?

Affiliate marketing involves partnering with individuals or businesses (affiliates) who promote your courses in exchange for a commission on sales they generate.

On the Teachable Pro plan or higher, you can set up an affiliate program where affiliates receive a percentage of revenue from sales they generate for your school.

Benefits of setting up an affiliate program:

• Extended reach - Affiliates can promote your courses to audiences you might not otherwise have access to.

• Performance-based incentives - Affiliates are motivated to promote effectively because they earn commissions based on sales.

• Cost-effective strategy - You only pay affiliates when they make sales, which means it's guarantee to be a cost-effective marketing strategy provided you set the right commission rates.

Example: Consider your gardening course again. You partner with a gardening blogger, Sarah, who promotes your course on her blog. Each time someone buys the course through Sarah’s affiliate link, she earns a 15% commission.

Key Differences: Referrals vs. Affiliates

Who is it aimed at?

• Referrals: Targeted at existing students who refer their friends.

• Affiliates: Targeted at external marketers who promote your courses.

What's the incentive structure?

• Referrals: Both referrer and referred friend receive discounts or rewards.

• Affiliates: Affiliates receive a percentage of revenue from sales.

How are people rewarded?

• Referrals: Discounts can be redeemed against purchases on your school.

• Affiliates: Commissions are typically paid out in cash via PayPal.

What's the marketing strategy?

• Referrals: Leverage personal connections and trust.

• Affiliates: Broader, often professional marketing tactics to reach wider audiences.

Which Teachable plan is required?

• Referrals: Available on Teachable’s free plan.

• Affiliates: Available on the Pro plan or higher.

When to Use Referrals vs. Affiliates

Referrals work best when you want to engage current students and encourage organic growth. By rewarding students for bringing in new members, you leverage their personal connections. This approach builds community and loyalty among your students.

Affiliates are ideal for reaching new audiences and scaling your marketing efforts. Affiliates, who are often external marketers or influencers, promote your courses to their networks. This helps you reach people you might not reach on your own. It’s especially useful for B2B marketing.

Pro tip: Using both strategies together can maximise impact!