It is a real daunting task to start in a new industry and affiliate marketing may seem entirely new concept to some beginners. Well, there is so much to learn as a newbie in affiliate marketing field but it is quite interesting to learn about it. But to be a successful affiliate marketer and build a bright career in it, learning all the new terminology is important. Don’t worry we are here to provide you all the help you need in this field. Let us have a look on some of the important terms in affiliate marketing and understand their meaning.
The merchant asks an affiliate to sign an agreement when you are ready to start a new affiliation relationship. This agreement has terms, rules, responsibilities and expectations on both sides of the affiliate relationship.
This is the tracking link provided by the merchant to the affiliates. With this link only it is possible to track the traffic and the sales generated by an affiliate through his marketing efforts.
Affiliate networks are the third party networks which manage affiliate programs on the behalf of merchants. All the technology, reporting and performance is provided by them. Some big names are ClickBank, Commission Junction etc.
This is a program offered by the merchants which allows affiliates to refer people to their products or services. The affiliates are paid predetermined commissions.
When affiliate programs are based on pay-per-click model, sometimes they may become a victim of click fraud. Fake clicks are generated in this case by the traffic which has no interest in product or service involved.
This is compensation (money) provided to the affiliate by the merchant for providing referrals. It is a predetermined amount usually and based on compensation methods like registrations, leads, sales etc.
When referred user completes a desired action like signup, purchase etc. on the merchant’s site, it is called conversion.
CPA stands for Cost per Acquisition. In this model commission is provided when a user performs a qualifying action after seeing the affiliate advertisement. Example- sales or signups.
Cost per Click is the cost paid to the affiliate every time when ad is clicked on.
Cost per Lead is the model of payment in which merchant pays the affiliate for every qualified lead referred to his/her website. A lead can be an email address, filled online surveys or others.
Click through Rate refers to the percentage of the visitors on the website who have clicked on a particular link.
It is a certain amount of earning accrued on the account of an affiliate before they receive a payout from the merchant.
Pay per Click- It is the payment model when a merchant pays for each click on the advertisement of the affiliate.
These are top performing affiliates who usually generate around 80% of the sales for the affiliate program.
This is a unique ID attached to the affiliate link provided to an affiliate by the merchant. This is used for tracking the traffic from a particular affiliate.
While label is the system in which the merchants allow affiliates to sell the merchant’s products or services under their own brand. The visitors believe that the product is sold actually by the affiliate and there is no mention about the merchant.