15 Affiliate Marketing Terminologies You Should Know

15 Affiliate Marketing Terminologies You Should Know
by Justin Dupre

Now that you have finally decided to enter the lucrative world of affiliate marketing you are suddenly overwhelmed by the number of new terms which baffles you. What does CPM mean? And what is CTR? Anyone new to this business usually gets confused with these terms. It's a good thing that you have come to this article since we will be discussing the top 15 affiliate marketing terminologies that you will be encountering.

Affiliate Link

It is the link that is provided to you by the merchant that identifies you. It links back to a particular product the merchant carries. The link may look like this "http://www.you.com/yourpage.asp?AffID=1" , or something like that.

Affiliate Manager

This is the person responsible for running a particular affiliate program of the merchant. The responsibilities include recruiting affiliates, providing media solutions, tracking the performance and paying the affiliates.

Affiliate Network

This is a third party service provider that caters to merchants and affiliates. They provide all the tools and technology necessary to make both the merchants and affiliates happy. Some of the popular networks are Clickbank and Commission Junction.

Click-Through

This is the process when a potential customer clicks on your affiliate link and arrives at a web site. Click-Through Ratio (CTR)

This is simply the percentage of visitors on your site who clickthrough your affiliate link.

Conversion

This is when a visitor to your site makes a purchase on the merchant's website via your affiliate link.

Conversion Rate (CR)

This is the percentage of visitors on your website that converts to a sale. If for every 100 visitors to your site you get 1 sale then your CR is 1 percent.

Cost Per Acquisition (CPA)

The amount you spend to get a customer. The lower this value the better it is for you.

Cost Per Click (CPC)

This is the amount you pay whenever a potential customer clicks on one of your links.

Cost Per Thousand (CPM)

This is the amount you pay for every 1,000 views you ad gets. In Roman numerals, M stands for one thousand.

Impression

This is an advertising term which defines how many times your ad link is displayed.

Niche Market

This is a more focused market segment. An example of this is in the motorcycle market, a niche market for this would have to be Honda Scooter Motorcycles.

Pay-Per Click (PPC)

This is an advertising scheme where advertisers will only have to pay whenever someone clicks on the ads. It may also refer to an affiliate program scheme where the affiliate receives a commission whenever someone clicks on your link and gets directed to the merchant.

Pay-Per Lead (PPL)

This is when an affiliate earns a commission for every sales lead generated for a merchant. Some examples for these are completed surveys, contest entries or free software downloads.

Pay-Per Sale (PPS)

This is when an affiliate earns a commission for every sale of a product which they referred to the merchant.

There you have it, the 15 most commonly used affiliate marketing terms. Once you understand these terms you are on your way to become a successful affiliate marketer

Hey there. I’m Justin Dupre. On a friendly basis, some might recognize me as Bud or Buddy, so feel free to call me whatever you are comfortable with. I’m on affiliate and internet marketer working with mostly PPC and PPM tactics to generate traffic to landing and offer pages. Since I started internet marketing during the middle of 2008, I’ve generated tens of thousands of dollars in revenue! It’s been an exciting journey that I’ve been learning a lot through out the whole process. I hope that by writing my blog, I can build equitity, interest, and network with the many other marketers and those interested in starting their own business like I have.

Justin Dupre may be contacted at http://justindupre.com/

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