Familiarize yourself with essential affiliate marketing terms. Our glossary helps you navigate the industry with ease, ensuring you understand key concepts and terminology.

Introduction

Affiliate marketing involves various terms and concepts that can be overwhelming for beginners. Understanding these key terms is essential for navigating the affiliate marketing landscape effectively. This guide provides clear definitions and examples of important affiliate marketing terms to help you get started.

Key Affiliate Marketing Terms

1. Affiliate

• Definition: An affiliate is an individual or business that promotes a merchant’s products or services in exchange for a commission on sales or leads generated through their efforts.
• Example: A blogger who promotes products on their blog using affiliate links and earns a commission for every sale made through those links.

2. Affiliate Dashboard

• Definition: An affiliate dashboard is an online interface provided by the affiliate program or network where affiliates can track their performance, commissions, and other metrics.
• Example: Amazon Associates offers an affiliate dashboard where affiliates can monitor their clicks, conversions, and earnings.

3. Affiliate Link

• Definition: An affiliate link is a unique URL provided by the merchant or affiliate network that tracks the affiliate’s referrals and sales. It contains a tracking code to identify the affiliate.
• Example: `https://www.example.com/product?ref=affiliateID123` is an affiliate link that tracks sales generated by the affiliate with ID 123.

4. Affiliate Network

• Definition: An affiliate network acts as an intermediary between affiliates and merchants, providing a platform for affiliates to find and join multiple affiliate programs.
• Example: ShareASale and CJ Affiliate (formerly Commission Junction) are popular affiliate networks that connect affiliates with various merchants.

5. Affiliate Program

• Definition: An affiliate program is a marketing program where a merchant pays affiliates a commission for promoting their products or services and generating sales or leads.
• Example: The Amazon Associates program, where affiliates earn a commission by promoting Amazon products.

6. Attribution Model

• Definition: The method used to determine how credit for sales and conversions is assigned to different marketing channels.
• Example: A business using a last-click attribution model gives full credit to the last affiliate link clicked before a purchase.

7. A/B Testing

• Definition: A/B testing is a method of comparing two versions of a web page, email, or ad to determine which one performs better.
• Example: An affiliate marketer tests two different headlines for a blog post to see which one generates more clicks.

8. Backlink

• Definition: A link from one website to another, important for SEO and affiliate traffic.
• Example: A fitness blogger includes a backlink to a supplement company’s affiliate page to improve ranking and drive sales.

9. Blacklist

• Definition: A list of affiliates or websites banned from participating in an affiliate program due to fraudulent or unethical practices.
• Example: A merchant blacklists an affiliate who used fake clicks and fraudulent transactions to earn commissions.

10. Bounce Rate

• Definition: Bounce rate is the percentage of visitors who leave a website after viewing only one page, without taking any further action.
• Example: A high bounce rate on a landing page may indicate that the content or offer is not engaging or relevant to visitors.

11. Chargeback

• Definition: When a customer disputes a charge, resulting in the reversal of an affiliate’s earned commission.
• Example: An affiliate sells a software subscription, but the customer requests a refund, leading to a chargeback that cancels the affiliate’s commission.

12. Clawback

• Definition: When a merchant revokes an affiliate commission due to returns, fraud, or other reasons.
• Example: A retailer deducts commissions from affiliates when customers return purchased products within 30 days.

13. Cloaking

• Definition: The practice of hiding or disguising an affiliate link to improve click-through rates and avoid commission theft.
• Example: An affiliate marketer uses a URL shortener to cloak long and complex affiliate links, making them appear more user-friendly.

14. Cost-Per-Action (CPA)

• Definition: A payment model where affiliates earn commissions based on specific actions like sign-ups or downloads.
• Example: A mobile app company pays affiliates $2 for every new user who installs and registers the app through their referral link.

15. Cross-Selling

• Definition: Encouraging customers to purchase related or complementary products through affiliate links.
• Example: An affiliate promoting running shoes also suggests sports socks and hydration packs to increase earnings.

16. Customer Lifetime Value (CLV)

• Definition: The projected revenue a customer generates throughout their relationship with a merchant.
• Example: A merchant calculates that a customer referred by an affiliate will spend $500 over three years, helping determine commission rates.

17. Deep Linking

• Definition: Linking directly to a specific product or service page rather than a homepage to improve conversions.
• Example: Instead of linking to Amazon.com, an affiliate directs users to a specific product page to increase purchase likelihood.

18. Disclosure

• Definition: A legal requirement for affiliates to disclose their relationship with a merchant, typically mandated by the FTC (Federal Trade Commission).
• Example: A YouTube influencer includes “This video contains affiliate links” in their description to comply with disclosure regulations.

19. Click-Through Rate (CTR)

• Definition: The click-through rate is the percentage of people who click on an affiliate link out of the total number of people who see the link.
• Example: If an affiliate link is viewed 1,000 times and clicked 50 times, the CTR is 5%.

20. Commission

• Definition: A commission is the payment an affiliate receives for driving a sale or lead to the merchant’s website. The commission can be a percentage of the sale amount or a fixed amount.
• Example: An affiliate earns a 10% commission on every sale of a $100 product, resulting in a $10 commission per sale.

21. Conversion Rate

• Definition: The conversion rate is the percentage of visitors who complete a desired action (such as making a purchase) after clicking on an affiliate link.
• Example: If 100 people click on an affiliate link and 5 of them make a purchase, the conversion rate is 5%.

22. Cookie Duration

• Definition: Cookie duration refers to the length of time a tracking cookie remains active on a user’s browser, allowing affiliates to earn commissions on purchases made within that time frame.
• Example: An affiliate program with a 30-day cookie duration means affiliates earn a commission if the user makes a purchase within 30 days of clicking the affiliate link.

23. CPM (Cost Per Thousand Impressions)

• Definition: CPM is a metric used in online advertising to measure the cost of 1,000 ad impressions.
• Example: An affiliate marketer pays $10 CPM for a banner ad, meaning they pay $10 for every 1,000 times the ad is displayed.

24. CTR (Click-Through Rate)

• Definition: CTR is the ratio of users who click on an affiliate link compared to the total number of users who view the link.
• Example: If 1000 people see an affiliate link and 50 click on it, the CTR is 5%.

25. Earnings Per Click (EPC)

• Definition: EPC is a metric that calculates the average earnings generated from each click on an affiliate link.
• Example: If an affiliate earns $100 from 200 clicks, the EPC is $0.50.

26. Earnings Per Mille (EPM)

• Definition: Similar to CPM, measuring revenue earned per 1,000 impressions.
• Example: If an affiliate earns $10 for every 1,000 ad views, their EPM is $10.

27. Evergreen Content

• Definition: Content that remains relevant and continues generating traffic and conversions over time.
• Example: A blog post titled “Best Affiliate Marketing Strategies for Beginners” remains useful and generates traffic for years.

28. Exit Intent Popup

• Definition: A popup that appears when a user is about to leave a page, often used to capture leads or promote offers.
• Example: A website displays “Wait! Get 10% off before you leave!” when a user moves their cursor toward the close button.

29. First-Touch Attribution

• Definition: A model where the first interaction a user has with an affiliate link is given full credit for a conversion.
• Example: If a user clicks an affiliate link but buys the product weeks later, the first affiliate still receives the commission.

30. Geo-Targeting

• Definition: Delivering specific content or affiliate offers based on a user’s geographic location.
• Example: A VPN affiliate program shows different promotions depending on whether a visitor is in the U.S. or Europe.

31. Impression

• Definition: The number of times an ad, link, or banner is displayed to users.
• Example: An affiliate banner ad on a blog receives 5,000 impressions, meaning it was displayed 5,000 times.

32. Influencer Marketing

• Definition: The use of social media influencers to promote affiliate products to their audience.
• Example: A YouTube fitness influencer promotes protein shakes through an affiliate link in their video description.

33. Landing Page

• Definition: A landing page is a standalone web page designed to convert visitors into leads or customers. Affiliates often direct traffic to landing pages to encourage specific actions. Enhancing a landing page to maximize conversions through design, copy, and testing.
• Example: A fitness blogger creates a landing page offering a free workout guide in exchange for email sign-ups.

34. Lead Generation

• Definition: The process of capturing potential customers’ information for future marketing efforts.
• Example: An affiliate offers a free eBook in exchange for email sign-ups to build a subscriber list.

35. Lead Magnet

• Definition: A lead magnet is a valuable resource offered for free in exchange for a user’s contact information, such as an email address. It’s often used to build an email list.
• Example: A personal finance blogger offers a free budget planner download in exchange for email sign-ups.

36. Merchant

• Definition: A merchant, also known as a retailer or advertiser, is a business that sells products or services and partners with affiliates to promote their offerings.
• Example: Amazon, which offers the Amazon Associates program for affiliates to promote its products.

37. Multi-Touch Attribution

• Definition: A model that distributes conversion credit across multiple touchpoints in the buyer’s journey.
• Example: A customer clicks an affiliate link, then sees a retargeting ad, and finally makes a purchase—each touchpoint gets partial credit.

38. Negative Keywords

• Definition: Keywords that prevent ads from displaying for irrelevant search queries, helping refine PPC campaigns.
• Example: An affiliate running Google Ads excludes the term “free” to avoid traffic from users looking for unpaid products.

39. Niche

• Definition: A niche is a specific segment of the market that an affiliate marketer targets with their content and promotions.
• Example: A blog focused on vegan recipes is targeting the niche of vegan food and lifestyle.

40. Pay-Per-Click (PPC)

• Definition: PPC is a commission structure where affiliates earn a commission each time someone clicks on their affiliate link, regardless of whether a sale is made.
• Example: Google AdSense is a PPC program where affiliates earn money for each click on the ads displayed on their website.

41. Pay-Per-Lead (PPL)

• Definition: PPL is a commission structure where affiliates earn a commission for generating leads, such as sign-ups or form submissions, rather than sales.
• Example: An affiliate earns a commission for each user who signs up for a free trial of a software product through their affiliate link.

42. Pay-Per-Sale (PPS)

• Definition: PPS is a commission structure where affiliates earn a commission only when a referred visitor makes a purchase.
• Example: The Amazon Associates program operates on a PPS basis, paying affiliates a commission for each sale generated through their affiliate links.

43. Recurring Commission

• Definition: A commission structure where affiliates earn ongoing commissions from subscription-based products.
• Example: An affiliate earns a 20% monthly commission for every active subscriber referred to a software service.

44. Retargeting

• Definition: The practice of displaying targeted ads to users who have previously visited a website but didn’t convert.
• Example: A visitor clicks an affiliate link but doesn’t buy; they later see an ad reminding them to complete the purchase.

15. ROI (Return on Investment)

• Definition: ROI measures the profitability of an affiliate marketing campaign by comparing the revenue generated to the costs incurred.
• Example: If an affiliate spends $100 on a Facebook ad campaign and earns $300 in commissions, the ROI is 200%.

46. SEO (Search Engine Optimization)

• Definition: SEO is the process of optimizing web content to rank higher in search engine results, driving organic traffic to a website.
• Example: An affiliate marketer optimizes their blog posts with relevant keywords to attract more visitors from search engines.

47. SERP (Search Engine Results Page)

• Definition: SERP refers to the pages displayed by search engines in response to a user’s search query. Higher SERP rankings generally lead to more traffic.
• Example: An affiliate marketer aims to rank their blog posts on the first page of Google’s SERP for relevant keywords.

48. Sub-Affiliate Network

• Definition: A network where affiliates can recruit other affiliates and earn commissions from their referrals.
• Example: An experienced affiliate joins a sub-affiliate network and recruits beginners, earning a small percentage of their sales.

49. Super Affiliate

• Definition: A high-performing affiliate who generates significantly more sales than the average affiliate.
• Example: A marketer who consistently earns six-figure commissions from affiliate programs.

50. Tracking Pixel

• Definition: A small, invisible image embedded in web pages or emails to track conversions and user behavior.
• Example: An affiliate uses a tracking pixel to monitor how many visitors complete a purchase after clicking their link.

51. Tripwire Offer

• Definition: A low-cost, high-value product used to convert leads into paying customers before upselling them.
• Example: A marketer offers a $7 mini-course as a tripwire before promoting a $500 coaching package.

52. Tracking Pixel

• Definition: A small, invisible image embedded in web pages or emails to track conversions and user behavior.
• Example: An affiliate marketer adds a tracking pixel to measure how many visitors complete a purchase after clicking their link.

53. Two-Tier Affiliate Program

• Definition: A two-tier affiliate program allows affiliates to earn commissions not only on their own sales but also on the sales made by affiliates they refer to the program.
• Example: An affiliate refers a friend to join an affiliate program. The original affiliate earns a commission on their own sales and a smaller commission on the sales made by their referred friend.

54. UTM Parameters

• Definition: Custom tracking codes added to URLs to analyze traffic sources and campaign performance.
• Example: An affiliate adds UTM parameters to their links to track which social media posts drive the most conversions.

55. Whitelisting

• Definition: The practice of allowing only approved affiliates or traffic sources to promote a specific offer.
• Example: A merchant limits their affiliate program to influencers with verified audiences, ensuring high-quality traffic.