Affiliate Marketing is a wonderful strategy to increase sales and make a significant amount of money
online. It is a performance-based marketing strategy where affiliates promote a product or service
online on behalf of a business or brand with the ultimate objective of boosting website traffic and
conversions. The affiliate receives payment from the merchant for each click or conversion they
generate. In simple words, it is a channel in which a publisher or affiliate is awarded a commission
for the sales they generate for an advertiser or merchant. An affiliate promotes products or
services using a unique link that sends traffic to the company’s website.
This type of marketing stands out since it is advantageous to all parties involved. Customers
benefit from finding products they might not have independently discovered and from receiving
recommendations from people they (apparently) trust. Where merchants and networks are satisfied with
the share of the sale.
Affiliate marketing is the most prevalent source of promotion and earning income. You can either
make it a passive income or build a multi-million dollar empire with this. It is entirely up to the
ability to utilize it in the best manner. So, if you are contemplating entering affiliate marketing,
there are some important terms you should know before you jump into it.
1. General Terms
Affiliates are third-party marketers that specialize in helping advertisers connect with
target audiences using a variety of methods. So, the affiliate functions as a traffic
the advertisers. There are different types of affiliates, but the vast majority employ
channels like social media, blogs, Youtube, and similar platforms to publish their custom
Advertisers are people who have products or services to promote digitally, and they do this
help of publishers. They pay commission to the publishers, which varies with the campaign
The advertiser generally provides links, banners, texts, and content to be used to promote
An affiliate network is a group of companies that offer compatible or complementary products
will pass leads back and forth. These are the affiliate networks that focus on connecting
marketers to advertisers looking for their skills.
Offers are various ads promoted digitally. An offer URL is a URL of a product or service
to be promoted. It is the content asset that lives behind the form of a landing page. It is
by advertisers to affiliates to generate original traffic on the product, which ultimately
the sale of that very product.
● Landing Pages
This is a page on the website where traffic is sent to make visitors click on links and
affiliate offer to make a profit. In simple words, it is a page where visitors land when
on a link.
● Ads Commission / Referral Bonus
Ads commission is the amount paid to affiliates in the form of commission as consideration
promoting the product of the brand or the company. It is an incentive that keeps affiliates
motivated. A referral bonus is paid to affiliates when an affiliate suggests or brings more
affiliates to the company.
In affiliate marketing, a visitor's action is referred to as a "lead." The action here could
registering for the website, using an online service, subscribing to a newsletter, or doing
something else other than making a purchase.
The merchant decides the course of action. Affiliates then receive a commission for each
the pay-per-lead payment method. Lead also conveys the visitor's interest in a good,
website before he becomes a customer of the business.
Creatives are materials that marketers use when promoting affiliate products and services
attracting new customers. These can be in the form of banners, text, or content. It was
in affiliate marketing to draw the attention of the target audience.
● Audience Targeting
It is a group of specifically acknowledged audiences based on common
like behaviors and demographics. Targeting is used to attract a potential audience that is,
way or the other, related to the product or service of the merchant. The objective is to
right audience and convey the suitable information to the only related audience.
It is the income earned by publishers through promoting the products and services of other
businesses. Various methods to promote the products are display ads in the form of links,
It is an amount paid by advertisers to affiliates in
their products or services. In simple words, the payout of an advertiser becomes the revenue
2. User Engagement Terms
The impression term is prevalent to quantify the number of digital views or engagements on an
advertisement. Products are promoted by affiliates through banners, text, links, or texts.
web page visitor makes an impression each time a banner, text, link, or another form of
promotional content is displayed to them. A high number of impressions leads to an increase
the efficiency of a marketing campaign.
It is stated as an action performed by people in the form of clicking on the ad displayed by
affiliate. Pay per Click is the model used in campaigns where affiliates receive money when
someone clicks on an affiliate link.
A conversion is any targeted action that the user should perform on the offer page. For
marketers, the conversion is the thing the advertiser pays a commission or fee for. There
different types of targeted actions, such as downloading the application, registration,
purchase, email subscription, etc.
It simply refers to the number of visitors who reach the website, landing page, sales funnel,
social media, etc. that are being promoted in a specific period of time. Traffic can either
organic or inorganic. Visitors who find the website through a search engine are considered
organic traffic, but visitors that are brought to it through social sharing are considered
The acquisition involves marketing goods to a new audience with the goal of acquiring new
clients. In view of this, it is essential for any company's e-commerce marketing.
focuses more specifically on prospects who are in the conversion funnel's "interest" or
"consideration" phases. Acquisition, then, isn't about raising brand awareness; it's about
developing techniques and plans to target customers who are looking into or thinking about
buying a product.
It is the analytical research that identifies the marketing strategies that are driving
conversions. In simple words, it is the practice of analyzing the marketing touchpoints a
customer comes across on the way to making a purchase. The objective of attribution is to
evaluate which contents and sources had the biggest influence on the choice to convert or
the desired next step.
3. Technical Terms
Tracking links are provided by performance tracking platforms, which are simple URLs with
appended parameters to track the user’s activity in the form of clicks, conversions, and
impressions. These tracking URLs are used by affiliates to generate traffic for the
● Postback URL
It provides a way to track conversions. A postback URL is a simple URL that tracks
These URLs include the data parameters such as click ID, conversion value, and the placement
used to connect to an affiliate network server or tracking server to verify conversion
S2S integration stands for server-to-server integration. It is a technique for transferring
information about web or app activity from one server to
another. It operates without depending on a cookie in the user's browser by transferring
from two secure servers.
The terminology "fallback" is generally used for redirecting traffic to any other URL or
In such cases, where a user wants to optimize all the unused traffic in the form of
out-of-target clicks, blocked clicks, restricted traffic, etc. to other suitable offers,
the fallback feature can help users with it.
● Application Program Interface (API)
It is a set of guidelines that programs can use to communicate with one another. In this
APIs serve as a mediator to facilitate information exchange and communication between apps
websites as well as other software applications. APIs are mainly leveraged to transfer data
an internal software program to the cloud and to retrieve cloud data into an internal
● Deep Links
Hypertext links to pages on a website other than the home page are referred to as deep
The term "deep" describes a page's position in a site's hierarchical page structure.
any page that comes after the home page at the top of the hierarchy can be said to be deep.
links can also be configured to send users to particular pages or events, which may tie into
campaigns that one wants to undertake.
The smallest pieces of data that a web server creates and delivers to a web browser are
cookies. The cookies that web browsers receive are stored for a predetermined amount of
which indicates how long a potential customer who clicks on the affiliate link could
sales during a specific campaign.
Performance marketing software are result-oriented software that provides useful insights on
basis of various attributes to measure the performance of live campaigns. It enables
marketers and ad networks to easily track, analyze, measure, and optimize useful statistics
campaigns through various data points such as clicks, conversions, impressions, leads,
● Mobile Measurement Partner (MMP)
MMP is an external third-party platform that tracks, analyzes, organizes, and visualizes
from the mobile apps to provide marketers with a constant view of the campaign's performance
effectiveness across partners and channels. It uses a wide range of technologies to track
attribute mobile events like clicks, app installs, engagement, and so forth.
4. Analytics Terms
● Click-Through Rate
It is the number of clicks your campaign receives that
counts as the number of times it was viewed. It is a ratio showing how often people who see
ad end up clicking it.
For example, in your live campaign, if you got 8 clicks and 100 impressions, then your CTR
● Key Performance Indicators (KPI)
It is a sort of performance evaluation that is used to measure progress toward a strategic
or objective. Different businesses use different KPIs to evaluate their performance in
marketing. The decision to set KPIs is based on a number of variables, such as the product
value, unique customer acquisition, return on investment, return on ad spend, revenue, click
traffic penetration, etc.
● Conversion Rate
The number of visitors to the website who complete a specified action, divided by the total
number of visitors to the website, is the conversion rate. In conversion campaigns,
are paid on the basis of specific, predetermined actions.
● A/B Testing
A/B testing, commonly referred to as split testing, compares two versions of a website or app
see which one performs best. In short, it is an experiment where consumers compare two or
variations of the website by utilizing statistical analysis to ascertain which variation is
performing better for a specific conversion aim.
● ROI/ ROAS
Return On Investment or Return On Ad Spend is the practice of attributing
the profit and
of an organization. It is the return earned from the amount previously spent on ads. ROI is
to justify marketing spending and budget allocation for ongoing and future campaigns and
initiatives. Numerically, it is calculated by dividing gross profit minus gross expenditure
gross expenditure and then multiplying it by 100.
● Cost Per Click (CPC)
It is a campaign model in which an advertiser puts an ad in an advertising venue (like
Youtube) and pays that venue each time a visitor clicks on the ad. In simple words,
receive a commission from the advertiser whenever someone clicks on the advertisement
● Cost Per Action/Acquisition (CPA)
It is an action-based campaign model where advertisers pay affiliates when visitors complete
action on some type of form. For example, sign up, registration, purchase, etc. are defined
● Cost Per Sale (CPS)
It is a sale-based campaign model where affiliates are paid whenever they produce a sale.
Affiliate commissions for affiliates in CPS campaigns can be a fixed amount or percentage of
● Cost Per Mile (CPM)
This is an impression-based campaign model where the advertiser will pay a set fee for his
be viewed 1000 times. In this model, advertisers will pay an affiliate for every 1000
impressions on the affiliate's website with the use of the advertiser's banners.
● Cost Per Lead (CPL)
In the CPL model, the advertiser is required to pay a set amount for each lead that is
Leads are acquired when a website visitor registers, makes a purchase, joins a mailing list,
engages in another sort of subscription. With the CPL model, a business has complete control
its brand throughout the campaign.
● Affiliate Manager (AM)
A person who manages an affiliate program and the publishers on behalf of an advertiser is
as an affiliate manager. Their basic functions include adding new affiliate partners to the
program, supervising the onboarding procedure, and determining various strategies to improve
effectiveness of the affiliate marketing channel. Additionally, they focus on process
improvement and giving the partners the help they require to get the greatest results.
● Uniform Resource Locator (URL)
A URL is nothing more than the web address of a specific resource. In affiliate marketing, an
affiliate link is a general URL to track the traffic that is sent to the advertiser's
● Conversion Rate Optimization (CRO)
It is the practice of improving the user experience of your website or landing page based on
website visitors' behavior to enhance the possibility that the visitor will convert to the
specified page. Any publisher, advertiser, or affiliate should give priority to the process
conversion rate optimization. Whatever the conversion objectives may be, enhancing the
experience to boost conversions will lead to the ultimate business growth.
Affiliate marketing is the most profitable source of income for people who want to
start their careers, and it is equally beneficial for brands who want to promote their products and
reach out to a wider audience. By putting in the time upfront, one can continue to benefit and
develop it into a reliable source of revenue.
The above-provided terms will act as a helpful guide and help you in one way or the
other during your affiliate marketing journey. It is the first chapter of learning to write the last
chapter of your business success. In order to write a masterpiece, make sure to learn everything