Affiliate Marketing Glossary

affiliate – The publisher/salesperson in an affiliate marketing relationship.

affiliate manager – A person responsible for managing an online affiliate program for an affiliate merchant.

affiliate marketing – Revenue sharing between online advertisers/merchants and online publishers/salespeople, whereby compensation is based on performance measures, typically in the form of sales, clicks, registrations, or a hybrid model.

affiliate merchant – the advertiser in an affiliate marketing relationship.

affiliate network – a value-added intermediary providing services, including aggregation, for affiliate merchants and affiliates.

affiliate software – software that, at a minimum, provides tracking and reporting of commission-triggering actions (sales, registrations, or clicks) from affiliate links.

conversion rate – The percentage of visitors who take a desired action.

cost per action (CPA) – Online advertising payment model in which payment is based solely on qualifying actions such as sales or registrations.

cost per click (CPC) – The cost or cost-equivalent paid per click-through.

cost per lead (CPL) – Online advertising payment model in which payment is based on the number of qualifying leads generated.

incentivized traffic – visitors who have received some form of compensation for visiting a site.

lead magnet – A specific deliverable that is offered to prospects in return for contact information, typically to join an email list.

pay per lead (PPL) – Online advertising payment model in which payment is based solely on qualifying leads.

pay per sale (PPS) – Online advertising payment model in which payment is based solely on qualifying sales.

payment threshold – The minimum accumulated commission an affiliate must earn to trigger payment from an affiliate program.

return days – The number of days an affiliate can earn commission on a conversion (sale or lead) by a referred visitor.

RPV (Revenue Per Visitor) – The average amount of revenue generated per visitor to a website, calculated by dividing total revenue by total visitors.

squeeze page – A type of landing page designed specifically to collect email addresses from visitors.

super affiliate – An affiliate capable of generating a significant percentage of an affiliate program’s activity.

two tier affiliate program – Affiliate program structure whereby affiliates earn commissions on their conversions as well as conversions of webmasters they refer to the program.

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