Home Faq Marketing Terms

Marketing Terms

Above the Fold:
Refers to the portion of an email or web page that is immediately visible. Typically, this information is regarded as the most important because it is what readers see first.

The person who is selling a good or service, and also pays affiliates to send traffic to their website after a purchase has been made. See also merchant.

An associate or webmaster apart of a lead generating program who earns commission for referring clicks, leads, or sales to a merchant.

Affiliate Agreement:
The terms that govern the agreement between an affiliate and merchant, such as what the affiliate will be compensated for generating traffic to a business.

Affiliate Fraud:
An illegal method used by some affiliates in an attempt to get paid unearned commission. Often, computers are manipulated to imitate human activity on a website by clicking on links to generate unmerited revenue.
Affiliate Link:
The URL link that identifies and tracks the affiliate’s traffic sent to the merchant’s website.
Affiliate Manager:
The individual in charge of running the merchant’s affiliate program; also referred to as an Account Manager. Responsibilities include signing up new affiliates, creating media for affiliates, updating account records and paying affiliates.
Affiliate Program:
  In such a program, affiliates are compensated commission for sales or leads on a pay-per-lead, -click, or -sale basis and web traffic.
Affiliate Program Directory:
A complete listing of a merchant’s affiliate programs, which usually displays commission rates.
Affiliate Solution Provider:
An outside business that offers an affiliate tracking solution on a hosted basis; not to be confused with Affiliate Software Solution (hosted by you with your website).
Affiliate Tracking:
Allows you to track specific links by an affiliate using a special URL Affiliate Link.
A way of automatically accepting all applications submitted by an affiliate.
Banner Ad:
An electronic ad (i.e. Flash Movie, JPEG, or animated GIF) that promotes a website, merchandise, or service.
Software, such as Internet Explorer or Netscape, which utilizes the Internet and its resources.
Charge Back:
A sale of no value that results in the forfeit of an affiliate’s commission.
Click Fraud
See Affiliate Fraud.
When a user clicks on a link and is redirected to the merchant’s website.
Click-Through Ratio:
CTR is the ratio of people on a site who click-through on a link to visit the merchant’s website.
Allows affiliates to include their own logo and branding on the pages to which they send visitors through affiliate links.
An affiliate’s earnings based upon sales from a lead or click-through to a merchant’s web site.
Conversion Rate:
The ratio of visitor clicks that result in a commission-based sale or lead.
Cost Per Action:
CPA is the cost amount for a conversion such as a sale or lead.
Cost Per Click:
CPC is the cost of a single click when paying on a per-click-basis.
Cost Per Thousand:
CPM is the cost of 1,000 banner impressions.
Cost Per Order:
CPO is the same as CPA but refers to sales only.
Customer Bounty:
Refers to affiliate pay for every new consumer they direct to the merchant.
Earnings Per Click:
EPC refers to the ranking in which clicks are turned into commissions (typically average earnings per 100 clicks).
HTML Code:
The lines of code with a unique identifier that an affiliate uses to link customers to the merchant’s site.
Refers to how many times an ad banner was displayed or viewed.
The process of building and managing your own affiliate program internal to your company as opposed to using an affiliate solution provider.
Manual Approval:
A way of confirming and approving an affiliate’s application or sales after they have been validated.
A person selling a product or service; see also advertiser. Merchants pay commission to affiliates to send traffic to specific websites in order to generate sales.
P3P Privacy Policy:
The protocol observed when it comes to sharing private information via the Internet from the World Wide Web Consortium (W3C).
Marketing program in which affiliates are paid commission on the basis of each conversion to a sale from a merchant’s website. These programs typically offer the highest commissions but tend to have the lowest conversion rates.
Marketing program in which affiliates are paid commission based on the conversion rate of their leads. A lead can include a signup form, software download, survey, contest entry, free trial agreement, and more. PPL tends to offer midrange commission and midrange to high conversion rates.
An Affiliate Marketing Program in which an affiliate is awarded for each click to the merchant’s site. This program is less common because of the increase in affiliate fraud (see click fraud).
Performance-Based Marketing:
A form of marketing in which the merchant only pays out for traffic that ultimately results in a sale.
Recurring Commissions:
If a merchant is provided a lead that results in a recurring fee, a percentage of that fee might be included in the affiliate’s commission.
Residual Earnings:
Some marketing programs pay affiliates commission for the first sale made by a lead, and for all other additional sales made by the customer.
“Return on Investment” refers to the money earned in relation to what marketing managers spent on advertising costs. The higher the sales, the greater the profit margin generated by sales---the better the ROI.
Spider Detection:
Detecting and ignoring automated bots (or spiders); i.e. Googlebot.
Super Affiliates:
Affiliates with the highest performance rates. Usually less that 1% of affiliates are considered “super affiliates.”
Targeted Marketing:
Marketing the right product to a specific customer at a specific time to increase the likelihood of a sale.
Tracking Method:
The way in which a program tracks referral sales, leads, or clicks. Most commonly, a URL is used for each affiliate by embedding an affiliate ID number into the link.
Text Link:
A link that is not joined by a graphic.
Tracking Code:
The hidden 1x1 pixel code placed on the confirmation page of a seller’s site to track sale conversions.
Two-tier Affiliate Marketing:
Refers to the process of Multilevel Marketing where affiliates have the option of signing up additional affiliates in hopes of earning a commission off of the new affiliates below them.
Unique Click:
The method of counting unique clicks from each visitor to a site.
Viral Marketing:
A method of online advertising that spreads in a similar manner as a virus (i.e. word-of-mouth or email).
A person who is able to design and sustain a website.