Affiliate marketing is a popular online business model that allows individuals to promote other people’s products and earn a commission for every sale they generate. If you’re new to affiliate marketing, it can be overwhelming to navigate the terminology and jargon used in the industry. In this post, we’ll break down some common terms and definitions to help you get started.
- Affiliate: An affiliate, also known as a publisher, is someone who promotes a product or service on behalf of an advertiser in exchange for a commission.
- Advertiser: Also known as a merchant, the advertiser is the company that owns the product or service being promoted by affiliates.
- Affiliate network: An affiliate network is a platform that connects advertisers with affiliates. It handles the tracking of sales, payments, and other administrative tasks.
- Commission: The commission is the percentage or flat rate that an affiliate earns for every sale made through their affiliate link.
- Affiliate link: An affiliate link is a unique URL provided to affiliates by advertisers that allows them to track their sales and earn commissions.
- Conversion rate: The conversion rate is the percentage of people who click on an affiliate link and end up making a purchase.
- Cookies: Cookies are small files that are stored on a user’s computer when they visit a website. They are used to track user behavior and are an essential component of affiliate marketing tracking.
- Payment threshold: The payment threshold is the minimum amount of commissions an affiliate must earn before they can receive a payout.
- EPC: EPC stands for earnings per click. It is the average amount an affiliate earns for every click on their affiliate link, regardless of whether a sale is made.
- Landing page: The landing page is the page on an advertiser’s website where a user is directed after clicking on an affiliate link.
- Affiliate manager: An affiliate manager is the person responsible for managing an affiliate program. They handle communication with affiliates, provide support, and oversee program performance.
- Click-through rate: The click-through rate is the percentage of people who click on an affiliate link.
- Two-tier affiliate marketing: Two-tier affiliate marketing is a program that allows affiliates to earn commissions not only on their sales but also on the sales of other affiliates they refer to the program.
- Recurring commission: A recurring commission is a commission that an affiliate earns for every recurring payment made by a customer they referred to the advertiser.
- Affiliate agreement: The affiliate agreement is a legal contract between an advertiser and an affiliate that outlines the terms and conditions of their relationship.
- Link cloaking: Link cloaking is the practice of disguising an affiliate link to make it appear as a regular link. It is often used to increase click-through rates and prevent affiliate link theft.
- Deep linking: Deep linking is the practice of linking directly to a specific product page on an advertiser’s website, rather than just their homepage.
- Banner ads: Banner ads are graphical ads that are placed on a website or blog by an advertiser for affiliates to promote.
- Niche: A niche is a specific market or audience that an affiliate focuses on when promoting products.
- White label: White label refers to a product or service that is produced by one company and rebranded by another company to make it appear as their own.
Understanding these common terms and definitions is a crucial first step for any beginner looking to dive into affiliate marketing. By familiarizing yourself with these terms, you’ll be able to communicate more effectively with other industry professionals and make informed decisions about your affiliate marketing strategy.