The list below outlines the terms most frequently asked about the affiliation industry, take the time to review and familiarize yourself with the field:
Above the fold is everything that is visible to you on a website or a mailer without having to scroll down the page. Everything beneath that part is referred to as Below the Fold. The content visible above the fold is considered more valuable as readers see it first.
The advertiser, or the merchant, is the individual or the company selling the good or providing with the service you will promote.
An affiliate is an individual or a company promoting the advertiser via web sites they own or any other method. Affiliates are paid commission according to their success in generating higher traffic to the advertiser’s site or buyers for his goods or services.
The affiliate agreement is the set of terms and conditions according to which the relationship between the advertiser to the affiliate will work.
The affiliate manager is responsible for the advertiser’s affiliate program. Within his duties is recruiting affiliates, establishing incentive programs, creating media for the affiliates, reporting on sales and of course- paying the affiliates.
The affiliate program is also referred to as an Associate Program, Partner, Referral or Revenue sharing program. In any event, the advertiser pays the affiliate for web traffic, sales or leads on a pay-per-click, pay-per-sale, or pay-per-lead basis.
An affiliate link is a URL tracking link that identifies the affiliate and sends traffic to the merchant's web site with the affiliate’s “stamp” on it. These links, being unique per each affiliate, enable the advertiser to measure the amount of traffic reaching through the specific affiliate.
Affiliate tracking is the process for which affiliate links are needed and by which the affiliates’ success is measured.
A banner ad is any sort of electronic advertisement (Flash Movie, animated GIF, JPEG and others) that advertisers a product, service, or web site.
A charge back is an invalid sale on behalf of the affiliate for which the affiliate’s commission will be forfeited.
Click through is the users’ action when they click on a link and follow through to the merchant's web site.
CTR is the percentage of visitors who click-through on a link to visit the merchant's web site.
Cookies are small text files that are stored on the visitor's computer by the merchant’s website. These record information that is of interest to the merchant site. In affiliate software, cookies are utilized to track which link or banner brought the visitor to the site. Another rimportant purpose served by affiliation sits’ cookies is their ability to record the date and time of visit and measure the lap between the visit to the actual conversion.
Each cookie, when planted on a site, has a predetermined expiry time. Affiliate sales can only be reported as long as the cookie is active.
Conversion rate is the percentage of sales or lead generations (commissionable actions) out of the total amount of clicks.
CPA is Cost Per Action\Acquisition
CPC is Cost Per Click
The cost of 1000 banner impressions.
CPL is the Cost Per Lead
How many times a banner advertisement was displayed or viewed.
An affiliate link is a link added by the affiliate and leading to the merchant’s site in an e-mail newsletter, signature, or a dedicated e-mail blast.
The HTML code refers to the lines of code that affiliates place on their web page(s) linking to the merchant's site. This HTML code contains the unique identifier that identifies the traffic as coming from the Affiliate's web site.
A pay per Sale program is an affiliate marketing program that rewards affiliates based on each conversion to a sale such as when purchasing a product or service from the merchant's web site. Pay-per-sale programs usually offer the highest commissions but tend to have the lowest conversion rates.
Pay per lead is an affiliate program that rewards affiliates for conversions to leads. What a lead is- is determined by the merchant’s product; a lead could be filling a signup form, download of a software, answering a survey, etc.
Pay per click is a non-common affiliate program with which affiliates are rewarded per each click. This program is not common for click fraud activities by affiliates.
Affiliation is performance based marketing as the affiliates are rewarded for their performance.
Recurring commissions are commissions paid to the affiliate each time the merchant charges the client for recurrent fees. For example all sorts of magazine prescriptions charging on a monthly basis- will pay the affiliate on a monthly basis
These are programs don’t only pay the affiliates for the first sale but rather for all additional sales made at the merchant's site over the life of the customer.
ROI stands for 'Return on Investment'. Merchants don’t want to spend more than they earn; this is the basics to ROI. ROI is calculated according to the returns on a certain merchant’s investment- if the return is higher than the investment- you can expect a happy merchant.
As their name states, super affiliates are the highest performing affiliates. Generally, only 1% of a merchant’s affiliates are super affiliates, but as such they usually generate 90% of the merchant’s sales.
While mass marketing is about putting an ad wherever and hoping it would generate something, targeted marketing is all about finding the correct platforms for the relevant product. When platform and product match- the marketing is targeted.
Tracking methods are ways through which programs track traffic referred by certain affiliates. URLs, cookies and affiliate IDs are the most common tracking methods
A text link is a link that is not accompanied by a graphical image.
There are hidden 1X1 pixel tracking codes that are placed on the confirmation page of the affiliate’s store for tracking sales and conversions.
This is a model according to which affiliates can recruit second tier affiliates to work beneath them and generate sales for the same merchant. When a second tier affiliate generates a sale, the main affiliate is rewarded for it as well.
A unique click is counted as a unique visitor to the site. If the same client enters twice- it will be calculated as a unique click.