There are several affiliate marketing terms that you will come across as you continue with the learning curve.
While scouring the web looking for affiliate products to promote, and finding new strategies to scale your business, you’ll come across some technical terms that are used across the affiliate industry.
These terms are vital in selecting the programs you want to work with.
Affiliate Marketing Terms
Some of these affiliate terminologies include:
Disclosure: This is a statement you make informing your readers that you use affiliate links in your website. To comply with FTC laws, you need to have this disclosure somewhere on the page where you use affiliate links. You want to place this statement towards the top of your pages before you mention your affiliate offers. You should also have a Disclosure page where readers can learn more about how you make money from your blog.
First click: This means that the affiliate program will allocate commissions to the affiliate who was first to refer the customer who made a purchase within their cookie duration
Last click: Programs using last click attribute the sale to the affiliate whose link was the last one that the customer clicked on to make a purchase. Though your referral could still be within the agreed cookie duration, you will not earn a commission if they clicked on another affiliates link and ended up purchasing the product. The last click is attributed the commission.
EPC. This is Earnings per Click and is usually calculated as the overall earned commissions divided by the number of clicks over a particular period. If 100 people clicked through to your merchant site, and 5 of them ended up making a purchase that earned you $100 per sale, then your average EPC is $1000/100 which equals $10
Advertiser: Advertisers are the merchants with products. They pay affiliates to promote their products through influencer marketing where compensation is commission based.
Affiliate /Publisher: This is you. You are paid a commission for every sale you generate for the merchant.
Affiliate Network: This is a marketplace that brings merchants and publishers together. The affiliates can choose which merchants they want to promote. They then apply directly through the program and the merchant can either approve or disapprove affiliates.
Cost Per Action: This is an affiliate model that rewards you for generating leads. You don’t have to make an actual sale to earn. This is common with loans and credit niches.
Conversion: This is an event generated by a user that the merchant is willing to pay for. This can be clicks, leads or sales
Lead: Think of this as a contact that has a potential of becoming a buying customer to your merchant. There are in fact affiliate networks specifically made for call leads.
Deep Linking: This is a feature in your affiliate network or program that enables you to generate an affiliate link to any page or post in your advertiser’s website.
Tracking link: Also known as the affiliate link. This is your inique link that leads to the offer and attributes as the referrer. Thus, this is the link you will be using to promote your partner’s products
Above the fold: This refers to the section of your website which is visible upon loading of the page without one having to scroll. Here, make sure you place your most converting opt in offer or a banner of your relevant and highly performing affiliate product.
Pay Per Sale: Affiliation model that only earns you a commission for every sale you make
Pay Per Lead: Affiliation model that pays you to generate a lead. You don’t have to make a sale to earn a commission. Your referral must sign up either to a free trial or by submitting their contact details
Pay Per Call: This is the new affiliation model that pays you when a referrer gets on a phone with your advertiser. Again, you don’t have to make a sale to earn a commission.
Creative assets: These refers to promotional materials that your affiliate partner provides you to help you easily promote their products. These include banners, images, logos, email swipe files
Swipe file: This are templates that you can easily tweak and re-use to promote a product. You have permission from your partner to use. Swipe files can include email templates, social media and even webinar templates.
Affiliate Manager: Think of this as your goddess in the affiliate world. Some programs will actually assign you a dedicated affiliate manager. This is a person hired by the advertisers to help their affiliates get started and expound on ways to help them grow.
Adblocker: These are tools that prevent display ads and even affiliate banners from showing when they are turned on. Many web users are using ad blockers to block ads when browsing the web. Thus, people who are likely to see your ads are actually way less.
Attribution: This is a process that affiliate software uses to identify which affiliates are driving conversions. These software are becoming clever in that they can attribute conversions based on the last click, first click, or even sharing commissions between the first and the last click.
For instance, an advertiser can set a commission to 30%, and in the case of the scenario above, they can indicate the first click to get 10% and the last click to get 20%