Common terms used in affiliate marketing. You are going to want to know what is what when it comes to affiliate marketing. It isn't expected of you to know everything there is to know right away, but learn the basic lingo, as the affiliate managers or networks you work with will be speaking it. Trust me, you will learn a lot along the way. Here are just a few terms that you really should be familiar with:
*payment threshold - the minimum accumulated commission an affiliate must earn to trigger payment from an affiliate program.
*return days - the number of days an affiliate can earn commission on a conversion (sale or lead) by a referred visitor
*super affiliate - an affiliate capable of generating a significant percentage of an affiliate program's activity
*two-tier affiliate program - affiliate program structure whereby affiliates earn commissions on their conversions as well as conversions of webmasters they refer to the program (It is a good thing to find a two-tier program!)
*creatives - A general marketing term used for the material used to generate leads and sell advertising developed and designed by art directors and/or copywriters in an ad agencies; otherwise known as banner ads, text ads, emails, etc.
*CPM - The cost, per 1000 people reached, of buying advertising space in a given media vehicle.
*reach - The estimated number of individuals in the audience of a broadcast that is reached at least once during a specific period of time
*Affiliate Solution Provider - company that provides the network, software, and services needed to create and track an affiliate program.
*Associate - synonym for affiliate.
*Charge Back - affiliate commission deduction due to an incomplete sales transaction.
Charge backs = not good
*Co-branding - when an affiliate gets to include its own logo and branding on the page (known as landing page) to which they send visitors through their affiliate links.
*Commission - The income an online affiliate gets for generating a sale, lead or click-through based on the merchant's settings.
*Contextual Link - Integration of affiliate link within related text. Contextual links are often used in newsletters and related articles. **Do not confuse with textual!
*Conversion rate - The percentage of clicks that result in a commissionable sale or lead. Conversion is measured in several places: conversion of your PPC ad on Google, conversion of incoming visitors to your landing page, conversion of your generated leads once they arrive at the merchant site.
*Cookies - Text files stored on visitor's computer to keep track of information relevant to merchant website.
*CPA - Cost per action
*CPC - Cost per click. Cost incurred in getting a user to click on a banner or text advertisement.
*CPL - Cost per lead
*CPM - Cost per thousand impressions
*CPO - Cost per order
*CPP - Cost per pixel
*CR - Conversion ratio or conversion rate. Orders per click
*CTR - Click through rate or Click through ratio. Number of impressions/Number of clicks. How often a visitor makes a sales or order after clicking through
*Customer Bounty - Commission amount paid to affiliate for every new client or customer that they direct to merchant
*EPC - Earnings per click. Average pay out per click, or per hundred clicks. Related to conversion and revenue per lead.
*FFA - Free for all links. No requirements for adding a link
*Hybrid Model - affiliate commission model that combines payment options (i.e. CPC & CPA).
*Impression - When an advertisement on a site is displayed to a web user.
*Merchant - an online business that markets and sells goods or services. Merchants establish affiliate programs to get consumers to purchase a product, register for a service, fill out a form, or visit a website.
*MLM - Multilevel Marketing
*Opt-in - Consent based newsletter and mailing list subscription
*PI - Paid Inclusion. Guaranteed listing is a search engine for a fee.
*PPC - Pay-Per-Click - when an affiliate receives a commission for each click (visitor) they refer to a merchant's web site.
*PPL - Pay per lead - when an affiliate receives a commission for each sales lead that they generate for a merchant web site.
*PPS - Pay-Per-Sale - when an affiliate receives a commission for each sale of a product or service that they refer to a merchant's web site.
*Revenue per lead - Business ratio that shows the conversion strength of the affiliate program to which you send leads - but also the quality of your leads.
*PRP - Percentage Revenue Plan - affiliate earns a percentage of the net lifetime revenue for each new referral.
*Raw Visitor - Counted every time a page is viewed
*Residual Earnings - Structure that pays commissions made at a merchant site for the life of the customer.
*ROAS - Return on Ads Spent - Percentage of income vs. expenses generated by advertising
*ROI - Return on Investment - Percentage of income earned vs. total investment. Shows how much you get in return for each dollar invested.
*SEM - Search Engine Marketing
*SEO - Search Engine Optimization
*SERP - Search Engine Results Page - the listing a search engine (for example Google) returns in response to a search query.
*Storefront - prefabricated HTML page, with integrated affiliate links, that displays new or specialized products.
*TOS - Terms of Service. Also knows as affiliate agreement
Seem like a lot? Well, it is, but many of these definitions are common sense. However, do not stress yourself over knowing everything right away. It takes time to learn, look over the definitions daily, review, and never be afraid to ask questions!
Wednesday, February 6, 2008
Breaking It Down
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