Affiliate Marketing Lingo

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AffiliateMarketing Lingo

By: CashMoneyBlitz.com

http://cashmoneyblitz.com/

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Above the Fold


This is the section of the website that a viewer can see on theirbrowser without having to scroll down.


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AffiliateAgreement


When you start a new affiliate relationship, you will receive one ofthese from the merchant. This agreement outlines the rules,expectations, responsibilities and other legalities on both sides ofthe relationship.


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Affiliate Link


This is the URL link that will be provided to you by your merchant.It is a unique link that will identify you as the affiliate whensending traffic to the merchant’s website. Without this link itwon’t be possible to track the traffic and/or the sales generated byyour affiliate marketing efforts.


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AffiliateNetworks


There are several third-party networks that help merchants manage theiraffiliate program on their behalf. Affiliate networks are responsible forrecruiting appropriate affiliates. They provide the back-end technology fortracking conversions and reporting on performance. They also ensure thataffiliate commissions are paid out on time.


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AffiliateNetworks(cont.)


Affiliate networks are helpful for exposing merchants to a widernetwork of potential affiliates. Some popular affiliate networksinclude ClickBank, Commission Junction and Amazon Associates.


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AffiliatePrograms


When a merchant offers a program that allows individuals (i.e.affiliates) to refer people to their products and/or services, it isknown as an affiliate program. In return for referrals, the affiliateis paid a predetermined commission. Affiliate programs are alsoknown as associate, partner, referral or revenue-sharingprograms. Here's some help on how to choose the right affiliateprogram.


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Charge Back


Sometimes a customer you have referred will make a purchase,then decide to cancel (for example, the product was returned). Asthe final sale didn’t actually go through, the merchant will deductthe commission from the sale and the affiliate will not receive anypayment for it. This is a charge back. For affiliate programs thatoperate based on lead generation, this can also occur if themerchant decides the leads sent were fraudulent.


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Click Fraud


Affiliate programs that compensate based on the pay-per-clickmodel can sometimes fall victim to click fraud. This happens whenfake clicks are generated (manually or automatically). Theseclicks will never result in conversions as the traffic has no realinterest in the merchant’s product/service.


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Commission


The money received by an affiliate in exchange for providingreferrals to a merchant’s site is known as commission. This isusually a predefined amount and is based on the desired outcome(i.e. leads, registrations, sales etc.).


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Conversion


When you refer a user to a merchant site and they successfullycomplete the desired action (e.g. sign up for the merchant’swebsite or make a purchase), it is known as a conversion.Conversions will differ depending on the desired outcome for eachindividual merchant.


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Cookies


Cookies are not exclusive to affiliate marketing and are usedaround the web. For example, if you were visiting a site likeFacebook, Facebook would insert a text file into your web browserto track certain activities anonymously. In affiliate marketing,cookies are widely used to assign an ID to the user in order totrack the conversion as coming from you, the affiliate. Cookies arevalid for a certain period of time, so if the user comes back later tocomplete a conversion, it will still be attributed to you.


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CookieExpiration/Retention


Cookies all come with expiration dates. Standard cookie lengthsare 30–90 days; however, you will find some that are less. If a usermakes a purchase within the cookie expiration/ retention period,the conversion will still be attributed to you, the affiliate.


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Cookie Stuffing


A sneaky practice that often gets individuals banned fromAmazon’s affiliate program. Cookie stuffing is done by sneakilyinserting cookies from a merchant’s site onto a user’s computer,even if the user has never actually visited the merchant’s site.The intention here is that the user will eventually come to themerchant’s site to make a purchase and the sale will be attributedto the affiliate. It is underhanded because the user has neverclicked on the affiliate link, yet the sale is still attributed to theaffiliate.


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CPA


Stands for Cost Per Action/Acquisition. It refers to the modelwhere the merchant pays for each qualifying action that a usertakes after they have seen an affiliate advertisement. Commonactions include completed sales or signups. CPA is also known asCost Per Order (CPO) or Cost Per Sale (CPS), where the merchantpays out for each qualifying order or sale.


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CPC


Stands for Cost Per Click. It is the cost of each individual click onan online ad.


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CTR


Stands for Click Through Rate/Ratio. This is a metric usually usedin direct-response advertising and reflects the percentage of sitevisitors who have clicked on a particular link.


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First Click


Say a user clicks on your affiliate link first, then goes to themerchant’s website but doesn’t immediately make the purchase.A week later, the user clicks on another affiliate’s link and endsup on the same merchant’s website. She makes a purchase thistime.


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Last Click


The opposite of first click is last-click attribution. The lastaffiliate to get a user to convert receives the commission in thiscase. Their link was the last link the user clicked on, so themerchant attributes the sale to this affiliate.


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PPC


PPC stands for Pay Per Click. A payment model where themerchant pays for each click on an affiliate advertisement.


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PaymentThreshold


Many merchants will require affiliates to accrue a certain amountof earnings before they receive pay out of their commission.


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ROI


ROI stands for Return On Investment. In the financial world, thedefinition can get complicated, but in eCommerce and affiliatemarketing it is simplified. It is calculated by evaluating the moneyearned (or lost) against the money invested (business setupexpenses, advertising costs etc.).


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Super Affiliates


The top affiliates in any affiliate program are known as the SuperAffiliates. Combined, they usually generate about 80% of the salesfor the program.


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Tracking Code


A unique ID is attached to your affiliate link to track the trafficyou send to a merchant. This is your unique tracking code.Example: merchant.com/?ID=UNIQUEID


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