Introduction

Affiliate marketing is a dynamic and profitable realm, but like any industry, it has its own language filled with jargon and terminology that can be confusing to newcomers. To help you navigate this world and understand the lingo, we’ve compiled a comprehensive glossary of affiliate marketing terms.

 

Here is an A to Z glossary of essential affiliate marketing terms you should know:

A

  • Affiliate: An individual or entity that promotes a merchant’s products or services in exchange for a commission.

  • Affiliate Link: A unique URL that identifies an affiliate and tracks their referrals.

  • Affiliate Manager: A person responsible for managing an affiliate program and its relationships with affiliates.

  • Affiliate Marketer: An individual or business that promotes products or services and earns a commission for each sale or action generated through their unique affiliate links.

  • Affiliate Network: A platform that connects affiliates with various affiliate programs and offers tracking and reporting tools to manage affiliate marketing activities.

  • Affiliate Program: A program offered by companies or product providers that allows individuals (affiliates) to promote their products or services and earn commissions on sales or leads.


B

  • Banner Ad: A graphical advertisement displayed on a website or blog to promote an affiliate product or service.

  • Bounty: A fixed commission paid to an affiliate for generating a specific action, such as a lead or sale.


C

  • Call to Action (CTA): A prompt or instruction encouraging users to take a specific action, such as clicking a link or making a purchase.

  • Click-Through Rate (CTR): The percentage of users who click on an affiliate link out of the total number of impressions.

  • Commission: The percentage of a sale or a fixed amount paid to an affiliate for generating a successful referral.

  • Conversion: The desired action an affiliate aims to achieve, such as a sale, lead, or signup.

  • Conversion Rate: The percentage of users who complete a desired action out of the total number of visitors or clicks.
  • Cookie: A small piece of data that’s stored on a user’s device when they click an affiliate link. It helps track the user’s activity and attributing sales to the correct affiliate.

  • Conversion Rate: The percentage of users who take the desired action, such as making a purchase, after clicking on an affiliate link.


D

  • Deep Link: An affiliate link that directs users to a specific product or page within a merchant’s website.


E

  • Earnings per Click (EPC): The average revenue generated per click on an affiliate link.

  • Evergreen Campaign: An affiliate campaign that remains active and relevant for an extended period.

F

  • FTC Disclosure: A legal requirement for affiliates to disclose their affiliate relationships and earnings when promoting products or services to maintain transparency with their audience.

 

I

  • Impression: A single instance of an affiliate link or banner ad being displayed to a user.


L

  • Landing Page: A dedicated web page designed to convert visitors into leads or customers.

  • Lead: A potential customer who has expressed interest in a product or service, often by providing contact information.

  • Lifetime Value (LTV): The total revenue generated from a customer over their entire relationship with the merchant.

  • Link Cloaking: A technique used to hide or mask affiliate links to make them look more user-friendly and less like promotional links.

 

M

  • Merchant: The company or individual that creates and sells the products or services being promoted by affiliates.


N

  • Network: A platform that connects merchants with affiliates and manages the tracking, reporting, and payment processes.

  • Niche: A specific, focused market or area of interest that an affiliate targets with their content and promotions.


P

 

  • Passive Income: Once set up affiliate marketing can provide an income with little or no intervention.

  • Pay-Per-Click (PPC): An affiliate commission model where affiliates are paid for each click on their links.

  • Pay-Per-Lead (PPL): An affiliate commission model where affiliates are paid for generating qualified leads.

  • Pay-Per-Sale (PPS): An affiliate commission model where affiliates are paid a percentage of each sale they generate.

    Payout Methods: Different ways affiliates can receive their commissions, such as through bank transfers, checks, or PayPal.


R

  • Recurring Commissions: Earnings affiliates receive for recurring sales or subscriptions generated by their referrals.

  • Referral: A visitor or customer directed to a merchant’s website through an affiliate’s promotional efforts.

  • Referral Link: Another term for an affiliate link.

  • Return on Investment (ROI): A measure of the profitability of an affiliate marketing campaign, calculated as the ratio of profit to investment.


S

 

  • Sub-Affiliate: An affiliate who signs up to an affiliate program through another affiliate’s referral.


T

  • Tracking Pixel: A piece of code embedded in a website or landing page to track user activity and attribute conversions to affiliates.


U

  • Unique Click: A click on an affiliate link from a unique user, eliminating duplicate clicks from the same user.


V

  • Vendor: Another term for a merchant or product/service provider in the affiliate marketing context.


W

  • Website Wrapper: A website designed specifically to promote affiliate products or services, often with minimal original content.

  • White Label: White Label: Rebranding and reselling another company’s product or service under your brand, often with affiliate marketing involved.


Z

  • Zero Risk: Affiliate marketing is considered a low-risk venture as affiliates don’t need to invest in inventory or product development.

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