Affiliate marketing is an extensive field. To thrive in the business, you must understand some of the key affiliate marketing terms used and the application of some of those terminologies. And when you are able to distinguish between all of the affiliate marketing terms, you are sure of making the most of the business.
There are various affiliate marketing programs, but find below 20 affiliate marketing terms you need to know.
1. Affiliate Link
This is the link given to affiliates by the affiliate programs that they sign up for. The link contains identifiers for marketers and the identifier are in the form of username or ID. Each affiliate’s traffic and sales are monitored using these links.
To track a visitor’s path across a website, attribution is employed. User’s IP addresses and referral sources are tracked in order to know where you are getting traffic from. This is required in order to give credit to affiliates who have sent you traffic.
A campaign is a planned effort made up of numerous advertisements or pieces of content with the common objective of increasing brand recognition and boosting sales. Facebook ad sets are an example of an advertising campaign, whereas an email newsletter series is an example of a content marketing campaign.
When you carry out a campaign, you increase your chances of making more sales.
A “conversion” occurs when a website visitor completes a desired activity, such as making a purchase, requesting a free trial, signing up for a subscription or even dropping off a comment on a story.
6. CPA (Cost Per Action or Cost Per Acquisition)
This is the amount paid to an affiliate for specific action(s) carried out on their website. For example, generating a lead or a sale is an action. The term is also known as cost per conversion.
7. CPC (Cost-Per-Click)
The is the amount earned by affiliates for clicks made on their website. It can also be seen as a “Cost-per-action”. It could be a CPA pricing plan or an affiliate pricing plan.
8. Call To Action (CTA)
A call to action tells people what they should do next (CTA). It should be simple and easy to understand.
9. Click Through Rate (CTR)
This is the total number of people who went to the page you wanted after clicking on your link. Click-through rates (CTRs) are calculated for all kinds of links, including those in ads, emails, and affiliate connections.
E-commerce is the process of buying and selling goods over the internet. In this area, affiliate marketing is used a lot.
When a person sees an ad or link on their screen, they get an impression. Even if someone saw your ad or clicked on the link, that doesn’t mean they interacted with it.
A person who has a lot of followers on a social media platform can become an influencer. Influential people are often used by brands to get their products in front of the people who follow them. Remember that not everyone with influence becomes an affiliate and that anyone can learn how to be a great affiliate marketer.
API stands for “application programming interface,” which is a term used in computer programming. Affiliates and advertisers can use Adtraction’s API to automatically get data instead of having to sign in and ask for reports. Our API is able to talk to their API.
Affiliate marketers often get a percentage for each sale as payment. Cost per order means that the advertiser gives the affiliate a cut for any order made on his platform.
15. Conversion Rate (CR)
Conversion rate is the number of people who click on your call to action and then do what you want them to do. If your tracking link gets 10,000 clicks and 100 sales, your conversion rate is 1%.
Conversions ÷ clicks = CTR.
16. Landing Page
If you want people to go to a certain website, you can send them to a landing page when they click on your CTA or see your ad. It’s a separate website from your main site that’s all about the product or service you want to sell or get people to sign up for.
A lead is a person who visits your website and does something like click on an ad or sign up for your newsletter. Most of the time leads trade a small amount of their time or knowledge instead of money.
18. Native Ad
These “ads” will stay up for as long as possible and send people elsewhere. They might share a podcast episode or a blog post that you think is important.
A niche is a small group of people or a small market. Affiliate marketing is one of many subgroups of the greater marketing field.
20. Partnership Marketing
“Partnership marketing” refers to any time two or more businesses work together, such as with influencer marketing and distribution contracts. Affiliate marketing is part of a bigger group, even though the terms are often used interchangeably.
You can track who comes to your page by adding a “pixel” of code. This is often done so that the next ads that user sees will be more relevant to them.
22. Post-backup URL
Every time there is a change, this URL gets new parameters. Its two main jobs are to keep track of data and make sure that conversions are correct.
23. Referral Bonus
In some affiliate programs, you can get paid to bring in new affiliates.
24. Retargeting (Remarketing)
Retargeting is the process of keeping track of people who have interacted with an ad and then sending them a new ad to try to get them to buy something. These are important because a customer usually talks to more than one person before making a purchase.
Site traffic is the number of unique visits to a website in a certain amount of time. There are different kinds of traffic, like direct traffic and traffic from search engines and social media (people who looked up your website directly).
26. Two-tier (multi-tier) affiliate program
In a two-tier or multi-tier affiliate program, you get paid for both the clicks and sales that your referrals make and the referrals that you make. This program gives rewards for both purchases and referrals.
Affiliate marketing is one of the most lucrative online passive income streams. If utilised properly, you can earn thousands of dollars from this venture. Instead of learning the peripherals, it is better you know the nitty-gritty of the business so you can benefit from it fully.
The above affiliate marketing terms will come in handing for you.
20 Affiliate Marketing Terms You Should Know in 2022!