Affiliate marketing is a performance-based marketing strategy where businesses offer commissions to affiliates for promoting their products and services. However, for those new to affiliate marketing, the terms used in the industry can be confusing. In this blog post, we’ll break down some of the most common affiliate marketing terms and definitions.
CPA (Cost Per Action)
A pricing model in which an advertiser pays a commission to an affiliate for each specific action taken by a customer, such as making a purchase or filling out a form.
PPC (Pay Per Click)
A pricing model in which an advertiser pays a commission to an affiliate each time a customer clicks on a particular ad.
EPC (Earnings Per Click)
A measure of the average amount of money an affiliate earns for each click on a particular ad.
Conversion rate
The percentage of visitors to a website who take a specific action, such as making a purchase or filling out a form.
Conversion
The process of turning a website visitor into a customer by making a purchase or taking a specific action.
Click-Through Rate (CTR)
The number of clicks on an affiliate link divided by the number of times the link was displayed.
Affiliate
A person or company who promotes a product or service in exchange for a commission.
Merchant
A person or company who offers a product or service for sale.
Affiliate network
A platform that connects merchants and affiliates, allowing them to promote and sell products and services.
Affiliate program
A program offered by a merchant that allows affiliates to promote their products or services in exchange for a commission.
Cookie
A small data file that is stored on a customer’s computer to track their actions and purchases for the purpose of paying commissions to affiliates.
Affiliate Link
A unique URL that tracks the affiliate’s promotion efforts and provides the merchant with the necessary information to credit the affiliate with a commission.
Commission
The payment made to an affiliate for promoting a product or service. This payment can be a percentage of the sale price or a flat fee.
Product Feed
A list of products and their information provided by a merchant to affiliates to promote.
Cookie Duration
The length of time a cookie remains on a visitor’s computer, used to track their activity and credit the appropriate affiliate.
Despite the confusion and complexity, affiliate marketing can be a highly effective way to drive traffic and generate sales for a business. By understanding the terms and concepts that are used in the industry, and taking the time to learn about the different strategies and techniques that are used by successful affiliates, businesses can leverage affiliate marketing to help grow their brand and reach new customers.
