Affiliate Marketing Glossary of Terms
*Beginner Level Internet & Affiliate Marketing Training.
ABOVE THE FOLD
Ad network – a company that connects publishers (niche website, bloggers) to advertisers (brands and merchants). Media Buyers can purchase its inventory. There are several pricing models available, and you bid for impressions, clicks or views. Why use ad networks? To reach a lot of websites while at the same time being able to optimize your traffic.
ADVERTISER This is the company that produces the products or services that you promote as an affiliate. More commonly referred to as the Merchant.
ADWARE Also referred to as “spyware”. Adware is usually included in free computer programs users download without realizing the Adware is also part of the package. In many cases, the advertisements are unwanted and difficult to get rid of, even after uninstalling the offending program. Most merchants will not work with affiliates who want to promote their offers via Adware.
Adware Also referred to as “spyware”. Usually unwanted programs users download without knowing they are part of the deal. They track the user’s behavior and place unwanted ads in their work space.
part of Google’s AdWords CPC advertising model that pays publishers
(affiliates) for displaying ads. Payment is determined based on the
number of clicks made and the amount of the advertiser’s
Advertiser: A person selling a good or service (see also: Merchant). Advertisers pay affiliates whenever a visitor takes the action (or actions) decided upon and defined in the affiliate agreement.
AdWords: A PPC advertising program from Google.
Affiliate: A Web site owner that earns a commission or finders-fee for referring clicks, leads, or sales to a merchant.
Affiliate Agreement: terms between a merchant and an affiliate that govern the relationship. This includes the terms on which the affiliate will be rewarded for the traffic sent to the merchant's web site.
Affiliate Link – a unique linking code that tracks activity of a publisher and publisher’s visitors for a brand. This code is embedded into a text or picture link and helps attribute visitors to the publishers who sent them to the merchant.
Affiliate marketing is one of the types of performance-based marketing strategies wherein a business rewards its affiliates for getting people to visit a website and buy or opt-in. Every time that an affiliate brings a customer or lead to the client’s website, it will be paid. There are actually four components that comprise affiliate marketing, namely: the merchant (the brand or retailer), the network, the publisher (the affiliate), and the customer.
affiliate marketing – revenue sharing between online advertisers/merchants and online publishers/salespeople, whereby compensation is based on performance measures, typically in the form of sales, clicks, registrations, or a hybrid model.
AFFILIATE MARKETING NETWORK / AFFILIATE NETWORK
affiliate merchant – the advertiser in an affiliate marketing relationship.
Affiliate Program – an arrangement through which the merchant pays a fee to the affiliate publisher for generating leads, clicks or sales from affiliate links. These programs can also be known as partner, associate, or referral programs.
affiliate network – a value-added intermediary providing services, including aggregation, for affiliate merchants and affiliates.
Affiliate Program Can also be called an Associate Program, Partner, Referral or Revenue sharing program. In such a program the merchant rewards the affiliate for web traffic, sales or leads on a pay-per-click, pay-per-sale, or pay-per-lead basis.
Affiliate Program Directory: A comprehensive listing of merchants' affiliate programs. The directories are typically categorized by industry and include the typical payout or commission rates.
Merchants approve or deny affiliates entry to their program in one of two ways – via automatic approval or manual approval. Auto-approval means they approve all affiliate applications automatically and instantly.
Affiliate Information Page: A page on your web site that explains the terms of your affiliate program including your commission rates, affiliate agreement, a link for existing affiliates to login, as well as a link to the signup page for new affiliates.
Affiliate Link: A URL tracking link that identifies the affiliate and sends traffic to the merchant's web site. These links are unique in order to track the traffic coming from the Affiliate site. Typically these links can be simple text links, images, product links, etc.
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 Software: A software program for running and managing an affiliate program. This typically includes signing up affiliates, managing links, tracking impressions, clicks, sales, leads. This also includes paying affiliates, etc.
Affiliate Solution Provider: 3rd party company that provides an affiliate tracking solution on a hosted basis. Typically an affiliate software solution is hosted by you with your web site. With an affiliate solution provider, they provide the hosting for you.
Affiliate Tracking: The process of tracking a link uniquely by affiliate using an Affiliate Link.
Alexa Rank – a platform which ranks and estimates websites based on the user’s browsing habits. Its sample contains all internet users and websites.
Alt Text – Alternative text that is used to inform site users about the content type of an image in the case it doesn’t show up on the website. Also known as “anchor text”.
API Application Programming Interface that has a set of rules, routines and protocols that are used for building software with graphical user interface components.
Associate: Synonym for affiliate.
Auto-Approve: Affiliate application process whereby all application are immediately accepted/approved upon submittal by the affiliate. This term can also be used to describe the process of automatically accepting all sales recorded by affiliates.
Auto-Download Offers When a site visitor clicks a banner, the content is downloaded automatically without the user’s consent.
Autoresponder: An email, or series of emails, that are automatically sent to a new subscriber, often in the form of a newsletter series.
Banner Ad: An animated GIF, Flash movie or JPEG advertisement on a Web page that promotes a product, service or website.
Incoming link from one webpage to another.
client software program that is used to access various Internet
resources. Examples include Internet Explorer, Google Chrome and
Business-to-Business (B2B) Advertising: A marketing strategy that involves the transaction of goods and services among two businesses rather than a business and a customer.
Charge Back: An invalid sale that results in the affiliate's commission being forfeited.
Click Fraud: The practice of artificially generating traffic to an advertiser's site. This can be done manually or through the use of automated clicking programs (called hitbots). This results in advertisers paying for traffic that has no potential for revenue generation while the scammer receives a percentage of the PPC fees paid out by the advertiser.
Fraud Monitoring: Independent services that monitor
clicks from PPC campaigns.
Click-Through: The act of a user clicking on a link that follows through to a merchant's website.
Click-Through Ratio/Rate (CTR): percentage of visitors who click-through on a link to visit the merchant's web site.
Contextual ads are types of paid advertisements that have been placed by an automated sponsored ad system on a number of related web pages. These pages show text or image ads relevant to the content on the page. This type of paid online advertising is becoming popular on mobile sites for mobile visitors. In fact, Google Adsense now has an ad format specifically for mobile.
Contextual Linking: When one places affiliate links to specific products in relevant or related text, articles or pictures on a Web page.
Conversion: When a website visitor completes a site goal, such as purchasing a product.
Conversion Rate (CR): The percentage of clicks that result in a commissionable activity (sale or lead).
A metric used to show the number of times your affiliate link has generated a predefined conversion compared to the number of times the link has been viewed displayed as a percentage. To find your conversion rate take the amount of sales a link has generated and divide it by the number of impressions the link received and multiple the result by 100 to get your conversion rate percentage. Example – if your link was viewed 100 times and generated 2 sales, then you would take 2 (sales) and divide if by 100 (impressions) to get .02 (result) and multiply that by 100 to get a conversion rate of 2%.
Content Farm A website that creates huge amounts of low-value content to generate clicks and create ad revenue.
Cookies: Small text files stored on a visitor's computer to record information that is of interest to a merchant site. In affiliate software, cookies are used to track which affiliate a visitor came from and which banner or link they clicked to get there. They can also store the date and time of the click to see how much time elapsed between a click and a conversion.
Cookie Expiration/Cookie Retention: The date a cookie is set to expire, which is defined when the cookie is planted on a visitor’s Web browser. Affiliate sales can only be recorded before the cookie expiration date. This period also determines whethor or not repeat sales will be recorded.
A practice that underhandedly deposits cookies from merchants onto users computers when the user has never visited the merchant through the affiliate's link and potentially may not have even the affiliate's website. Cookie stuffing is done with the intent of stuffing as many cookies as possible onto as many user computers as possible in the hopes that they eventually come accross the merchant website and make a purchase. The larger and broader the merchant, the more likely that is to occur (think Amazon). Cookie stuffing is heavily looked down upon by legitimate affiliates and most merchants ban affiliates using cookie stuffing in their affiliate agreements.
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.
CPL (Cost per Lead) The price a merchant pays for each form that a website visitor fills out.
CPM (Cost Per Thousand): The cost of 1000 banner impressions.
CPO (Cost Per Order): Same as CPA but refers specifically to sales.
CPS (Cost per Sale) The price a merchant pays for each referral that ends in a sale.
CPV (Cost per View) or the price a merchant pays for every time their ad is displayed.
Crawlers – in the context of SEO, they are the programs that scan and analyze websites to determine their value and rank the results for certain keywords.
Customer Bounty: Pays the affiliate partner for every new customer that they direct to a merchant.
Disclosure A notice on the affiliate’s website that notifies readers of the fact that the publisher is getting paid for any purchases they make through their links. It is important to have one to be compliant with FTC laws.
Domain Authority a score in a 100-point scale created by Moz, which shows and predicts how well a website will rank on search engines.
Double opt-in A 2 step subscription system, in which a website visitor voluntarily fills out a form to receive notifications, and then confirms his or her subscription via email.
This is required under anti-spam laws in several countries.
Demographics: Specific populations broken down by commonly shared characterisitics such as age, sex, income, education, household size, home ownership status and more for the purpose of allowing marketers to study the trends of a desired audience.
**This site is supported by Ad Placement, Native Advertisement & Affiliate Advertisement links. We may earn commissions on products and services mentioned, shown, and linked to in our content.
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