Decoding Affiliate Marketing: Common Jargon Explained

Decoding Affiliate Marketing: Common Jargon Explained

 

Greetings, budding affiliate marketers! If you’ve newly entered the field of affiliate marketing or are planning to, you may have come across some terms that seem like a foreign language. Don’t fret – this blog post is your handy guide to understanding the common jargon in affiliate marketing. Let’s decode them!

1. Affiliate

An affiliate, also known as a publisher or partner, is an individual or company that promotes a merchant’s products or services on their platform (blog, website, social media) and earns a commission for any sales, leads, or clicks they generate.

 

2. Merchant

A merchant, also known as an advertiser or retailer, is the party that creates and sells the products or services. Merchants partner with affiliates to promote their offerings and pay them a commission for the conversions they generate.

 

3. Affiliate Network

An affiliate network acts as an intermediary between merchants and affiliates. It provides a platform for them to connect, handles the tracking of conversions, and manages the payment of commissions.

 

4. Affiliate Link

An affiliate link is a unique URL given to an affiliate by the merchant or affiliate network. It tracks the traffic and sales sent from the affiliate to the merchant’s website. Affiliates earn a commission when a user clicks on their affiliate link and completes a conversion action.

 

5. Conversion


A conversion occurs when a user completes a desired action after clicking on an affiliate link. This could be a purchase, a sign-up, a download, etc., depending on the merchant’s affiliate program terms.

 

6. Commission


A commission is the amount of money an affiliate earns for generating a conversion for the merchant. It can be a fixed amount or a percentage of the sale and is specified in the merchant’s affiliate program.

 


7. Cookie

In affiliate marketing, a cookie is a small piece of data that tracks a user’s activity. When a user clicks on an affiliate link, a cookie is dropped on their device. This allows the affiliate network or merchant to track the user’s actions and attribute any conversions to the correct affiliate.


8. Cookie Duration

Cookie duration, also known as cookie life, is the period during which an affiliate can earn a commission after a user clicks on their affiliate link. If the user completes a conversion action within this period, the affiliate earns a commission.

 

9. Pay-per-Sale (PPS)


In a Pay-per-Sale model, affiliates earn a commission for every sale they generate through their affiliate link. This is the most common payment model in affiliate marketing.

 

10. Pay-per-Click (PPC)


In a Pay-per-Click model, affiliates earn a commission for each click they generate to the merchant’s website, regardless of whether a sale is made.

 


11. Pay-per-Lead (PPL)


In a Pay-per-Lead model, affiliates earn a commission for each lead they generate. This could be a user filling out a form, signing up for a trial, etc.

 


12. EPC (Earnings per Click)


EPC is a metric used to indicate the average earnings generated per 100 clicks on an affiliate link. It’s a useful way for affiliates to estimate the profitability of an affiliate program.


Deciphering the jargon is your first step in understanding the exciting world of affiliate marketing. These terms are your building blocks, and understanding them can significantly streamline your affiliate marketing journey. Stay tuned for more insights and guidance in your affiliate marketing voyage! Happy marketing!

 

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