A to Z

Here is a list of words and phrases you will hear a LOT when doing affiliate marketing. There are literally thousands of terms and words withing the industry but we have filtered it down.  We only included the most relevant ones we could think of.

Above the Fold: This refers to the top half of a webpage. The above the fold area is more valuable in advertising because it is the area which everyone will see. Increased exposure.

Advertiser: This is the person who has a products/service to sell. Also known as the merchant. This is the person who pays you (affiliate) to bring traffic and sales to his page/product.

Affiliate: This is YOU! A person who sends traffic to a advertisers page/products and the affiliate gets paid per sale/lead/per click.

Affiliate Agreement: this is the terms and conditions between an advertiser and affiliate. This agreement will stipulate what, where, when and how you can advertise and how much you get paid. Word of advice; never break this agreement.

Affiliate Link: Basically a link which is unique to the affiliate so the merchant know who has sent traffic his way. For example; http://www.yourdomain.com/AffiliateID=1234
The merchant uses these links to identify which affiliate gets paid what commissions.

Affiliate Manager: The person responsible for running the merchant’s affiliate program. This includes recruiting affiliates, establishing incentive programs, creating media for the affiliates, reporting on sales and paying affiliates.

Affiliate Program; Can also be called an Associate Program, Partner, Referral or Revenue sharing program. This is where you get your links from to promote the products. Example; Amazon Associate Program.

Affiliate Program Directory: A directory full of thousands of affiliate programs. They are separated by niche and commission rates at entry requirements are listed.

Affiliate Tracking: The process of tracking a link uniquely by affiliate using an Affiliate Link.

Associate: This is YOU, again! This is a synonym for affiliate.

Banner Ad: An electronic advertisement or billboard such as an animated GIF, Flash Movie, JPEG that advertisers a product, service, or web site.

Charge Back: This is when your sale is invalid and your commission is forfeit.

Click-through: The action when a user clicks on a link and follows through to the merchant’s web site.

Click-Through Ratio (CTR): percentage of visitors who click-through on a link to visit the merchant’s web site.

Co-branding: when affiliate can brand the merchant sales pages with their own logo.

Commission: This is the affiliate’s income from generating sales/leads and clicks to a merchant’s webpage.

Cookies: small text files stored on the visitor’s computer, which record information that is of interest to the merchant site. In affiliate software cookies are utilized to track which affiliate the web visitor came from and which banner or link they clicked. They can also store the date/time of the click for purposes of tracking the time elapsed between a click and a conversion to a sale or lead.

Cookie Expiration/Cookie Retention: When a cookie is planted on a web browser, a date when the cookie expires is defined. This date is important because affiliate sales can only be recorded before the cookie expiration date. This period will also determine if repeat sales will be recorded.

Conversion Rate: Percentage of clicks that result in a commissionable activity (sale or lead).

CPA (Cost Per Action): The amount of cost for a conversion such as a sale or lead.
CPC (Cost Per Click): Cost of an individual click when paying on a per click basis.
CPM (Cost Per Thousand): The cost of 1000 banner impressions.
CPO (Cost Per Order): Same as CPA but refers specifically to sales.

Direct Linking: Refers to having your affiliates links go directly to the landing page rather than a redirect.

EPC (Earnings Per click): Average earnings per 100 clicks.

Impression: How many times a banner advertisement was displayed or viewed, not clicked.

Multiple Tiers: Refers to running a multiple tier affiliate program where affiliates who refer other affiliates earn commission off of those affiliates. So you basically earn a commission from your referral’s referral.

Pay-Per-Sale: Way of payment that rewards affiliates based on each conversion to a sale such as when purchasing a product or service from the merchant’s web site.

Pay-Per-Lead: Program that rewards affiliates for conversions to leads. A lead might include a signup form, software download, survey, contest or a sign-up for a trial.

Pay-Per-Click: Rewards an affiliate for each unique click to the merchant’s web site.

Performance-Based Marketing: Marketing in which the merchant only pays commissions for results such as conversions to sales or leads.

Recurring Commissions: When an affiliate successfully refers a customer to a merchant’s page who signs up for a monthly subscription. The recurring commission appears when the customer continues subscription.

Residual Earnings: Programs that pay affiliates not just for the first sale a shopper form their sites makes, but all additional sales made at the merchant’s site over the life of the customer.

ROI: This stands for “Return on Investment”.

Super Affiliates: The highest performing affiliates. Normally less than 1% of affiliates are super affiliates yet that 1% typically will bring more than 90% of your sales.

Targeted Marketing: Offering the right offer to the right customer at the right time and place.

Tracking Method: the way that a program tracks referred sales, leads or clicks. The most common are by using a unique web address (URL) for each affiliate, or by embedding an affiliate ID number into the link that is processed by the merchant’s software.

Text Link: link that is not accompanied by a graphical image. Just a simple text link such as “Click Here”

Tracking Code: This is the hidden pixel tracking code that is placed on the confirmation page of your website for tracking sales conversions. Basically a little switch which records your sales.

Two-tier: Affiliate marketing model that allows affiliates to sign up additional affiliates below themselves, so that when the second tier affiliates earn a commission, the affiliate above them also receives a commission.

Unique Click: The process of only counting unique clicks from each web visitor. Unique clicks are typically tracked by recording the IP address and browser header. Never try an cheap this system to get a better payday.

Viral Marketing: This is when your site/product or service get passed between people and social site on a large scale and very quickly. This is an affiliate wet dream!

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