Glossary
Affiliate
An individual or company that promotes products for a merchant in exchange for a commission.
Affiliate Marketing
A performance-based marketing strategy where affiliates earn commissions by promoting a merchant's products or services.
Affiliate Network
A platform that connects merchants with affiliates to facilitate affiliate marketing partnerships.
Affiliate Program
A system where a merchant rewards affiliates for driving traffic or sales through their marketing efforts.
Commission
The fee paid to an affiliate for generating a specific action, like a sale or lead.
Click-Through Rate (CTR)
The percentage of people who click on an affiliate link compared to those who view it.
Conversion Rate
The percentage of visitors who take a desired action, such as making a purchase, after clicking an affiliate link.
Cookie Duration
The time period during which a merchant tracks an affiliate's referral for commission purposes.
Cost Per Action (CPA)
A commission structure where affiliates are paid when a specific action is completed by the referred user.
Cost Per Click (CPC)
A payment model where affiliates earn money each time a user clicks on their affiliate link.
Cost Per Mille (CPM)
A commission model where affiliates are paid per thousand impressions of an ad or link.
Earnings Per Click (EPC)
An average amount earned by an affiliate each time a user clicks on their affiliate link.
Landing Page
The web page where a visitor arrives after clicking an affiliate link, designed to convert visitors into leads or customers.
Lead
A potential customer who has shown interest in a product or service, often by providing contact information.
Merchant
A company or individual who sells products or services and runs an affiliate program.
Pay Per Click (PPC)
An advertising model where affiliates are paid each time their ad or link is clicked.
Pay Per Sale (PPS)
A commission structure where affiliates are paid only when a sale is made through their referral.
Performance Marketing
A marketing approach where payment is based on measurable results, such as sales or leads.
Publisher
Another term for an affiliate who promotes products or services through their own channels.
Return on Investment (ROI)
A measure of the profitability of affiliate marketing efforts compared to the costs involved.
Tracking
The process of monitoring clicks, conversions, and other actions to attribute them to the correct affiliate.
Two-Tier Affiliate Program
A program where affiliates earn commissions on their own sales and on the sales made by affiliates they refer.
Upsell
A sales technique where a higher-end product or service is offered to a customer during the purchase process.
White Label
A product or service produced by one company that other companies rebrand to make it appear as if they made it.
Chargeback
A reversal of a transaction, resulting in the loss of a sale and commission for the affiliate.
Contextual Advertising
Advertising that is relevant to the content on the web page where it appears.
Conversion
The completion of a desired action by a user, such as making a purchase or signing up for a service.
Lifetime Value (LTV)
The total revenue a merchant expects to earn from a customer over the entire period of their relationship.
Link Cloaking
The practice of disguising affiliate links to make them shorter and more user-friendly.
Pay Per Lead (PPL)
A commission model where affiliates are paid for generating leads, regardless of sales.
Recurring Commission
Ongoing commissions earned by affiliates for repeat purchases or subscriptions by referred customers.