If you work in online advertising, you undoubtedly come across a lot of terminology and terms related to affiliate marketing.
We’ve chosen and defined the eight most crucial affiliate marketing terms that frequently appear in this market to make your life easier.
So let’s get started…
An advertiser is a company that operates a product or service and pays publishers who help to promote the advertiser’s business and sell the product or service through online marketing channels
Publishers are individual or a company that promotes advertiser products or services on their websites, blogs, or social media accounts in exchange for payments.
CPA, cost per action
The cost of a specific action taken by a visitor is referred to as cost per action. Often, the action is always a form of conversion. For example, a visitor purchase a product.
CPS, cost per sale
CPS, also known as Cost per Sale, is a payment model that is used for Affiliate Marketing. The payment model based on CPS is mainly used in the phase in which a potential customer actually makes a purchase. A commission is then paid to the ‘publisher’ of the advertisement.
CPC, cost per click
CPC, also known as Cost per Click, is a payment model commonly used in Affiliate Marketing. For example, each time the ad is clicked, the publisher will earn a commission from the advertiser.
CPL, cost per lead
CPL, also known as Cost per Lead, is a payment model for used in Affiliate Marketing for a lead generated. A lead can be an e-mail address, a requested quotation, or a completed contact form. In this case, no actual purchase has been made yet, but a potential customer is looking for more information about a product or service.
When a user visits a specific website, cookies are left behind. They keep information on that user, including their website preferences and purchasing patterns, on the website. Cookies allow advertisers to see what publisher deserves credit for a sale, even when a consumer bought a product sometime after the publisher sent him or her to the advertiser’s website.
Reward is the payment you receive for successfully promoting an advertiser’s products or services. Also, know as commission.
Now that you are familiar with all the essential Affiliate Marketing terms and slang used in affiliate marketing, you are ready to start your affiliate marketing journey.