The Ultimate Affiliate Marketing Glossary: Terms You Need To Know.
Affiliate marketing is a type of online marketing where businesses pay individuals or other businesses to promote their products or services. To understand this field better, it’s important to be familiar with the terminology used in affiliate marketing. In this article, we’ll go over some of the most common affiliate marketing terms you need to know.
Affiliate: An individual or business who promotes someone else’s products or services and earns a commission for each sale or lead generated.
Affiliate Link: A unique URL provided to an affiliate by a merchant that tracks clicks and conversions from that affiliate’s promotion.
Affiliate Manager: The person responsible for managing a merchant's affiliate program.
Affiliate Network: An intermediary between merchants and affiliates, providing a platform for tracking and managing affiliate programs.
Commission: The percentage or flat fee paid to an affiliate for each sale or lead generated from their promotion.
Conversion Rate: The percentage of visitors who complete a desired action on a website, such as making a purchase or filling out a form.
Cookie: A small piece of data stored on a user’s computer that helps track their activity and behavior on a website.
CPA (Cost Per Action): A pricing model where merchants pay affiliates a fee for each desired action taken by a visitor, such as filling out a form or downloading an app.
CPC (Cost per Click): A pricing model where merchants pay affiliates a fee for each click on an affiliate link.
CPM (Cost per Thousand Impressions): A pricing model where merchants pay affiliates a fee for every thousand times an ad is displayed.
CTR (Click Through Rate): The percentage of clicks on an affiliate link compared to the number of impressions.
EPC (Earnings per Click): The average commission earned by an affiliate per click on their affiliate link.
Impression: The number of times an ad is displayed on a website.
Merchant: The business that offers products or services for promotion by affiliates.
Niche: A specific area of focus or interest in which affiliates specialize in promoting.
Pay Per Sale: A pricing model where merchants pay affiliates a commission for each sale generated from their promotion.
ROI (Return on Investment): The amount of revenue generated compared to the amount spent on promoting a product or service.
Sub-Affiliate: An individual or business who signs up to promote a merchant’s products or services through an existing affiliate’s link.
Tracking Code: A unique code used to track the activity and behavior of visitors who click on an affiliate link.
Vertical: Refers to the industry or type of product/service being promoted by affiliates.
With this glossary, you should now have a better understanding of the key terms used in affiliate marketing. Whether you’re looking to become an affiliate or a merchant, it’s essential to understand these terms to be successful in the industry. By knowing the terminology of affiliate marketing, you’ll be able to communicate more effectively and make informed decisions about your affiliate marketing strategy.