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TERMS IN AFFILIATE MARKETING

TERMS IN AFFILIATE MARKETING

Affiliate Marketing is developing and getting more and more popular. People are doing it and the results are somehow amazing. Making money by affiliate marketing is on the way to become a main income and improve everyone’s living standards lately.

In order to help newbies on understanding Affiliate Marketing, on this article,  I will recapitulate the terms that are usually used in Affiliate Marketing.

However, my guides are only for those making money online so the definitions and explanations might be for affiliate purpose.

That means it is for people promoting products, not the general terms of affiliate marketing.

PUBLISHER

3

Publisher is abbreviate to “Pub”.

It is you and me, us. We create the content, publish it through content, social media and attract people to that content.

The more trustworthy  the content is, the more customers will buy it through our links and we get commission.

ADVERTISER

Krushmedia-advertiser

Abbreviated to Ad, and also known as vendor or merchant.

They have the products, they create them and want to promote them by affiliate marketing, they will need publishers to bring them customers.

Usually, they would do it through networking to simplify the process. However, some advertisers have their own affiliate system and a management team.

AFFILIATE NETWORK

Aka Affiliate Marketplace. It plays an intermediary role in affiliate marketing field.

They provide a link between publishers and advertisers. They put advertiser’s products on their system, and publishers will find the information much more easily.

About payment, network will charge the advertisers and then pay publishers. All the affiliate network has professional software that supports in order to survey the data cross-checking, traffic statistics, explicit payment and dealing with fraud, etc.

E.g.: Commission Junction (CJ.COM) is a top-notch affiliate network.

PRIVATE AFFILIATE PROGRAM

Some companies have adequate conditions to develop the software supporting affiliate marketing and HR department so they will open their own affiliate program, which is called Private Affiliate Program.

They sometimes work through network. You can work directly through their own system.

Private Affiliate Program earns higher commission because they do not have to pay commissions to third party, and you will get better service and support from their affiliate manager.

AFFILIATE LINK

When you sign up to be a direct affiliate or through network, and promote any product, you will be provided with your own one and only link.

It is called affiliate link, it helps collect the data to see “who helps the promotion?”.

When a user clicks on your affiliate link, and do things like shopping, fill in the form, signing up, filling in the survey forms, etc. You will get commissions.

AFFILIATE ID

Some affiliate program has “creating affiliate ID” features, when you sign up an affiliate account, then your account has a corresponding ID.

From your affiliate ID, you can create affiliate link for any product by attaching the ID along with the link based on affiliate link’s guides.

This means you can attract any users to any products just by adding affiliate ID to the end of that page’s link and go promoting.

AFFILIATE MANAGER

Many network or advertisers have supporting experts for their affiliate program, these are called Affiliate Managers.

You can call them AM for short. You might find them after logging in the system.

An affiliate manager’s responsibility is helping publishers in every issue relating to making affiliate for that advertiser’s products.

Such as supporting publishers about promoting methods, product info, payment, maintenance, which product is on trend, etc.

For example, an affiliate manager will give the lists from the potential that the company staff find out, hinting to you all the marketing forms can bring high profits based on data statistics, or recommend some efficient marketing tools, etc.

COMMISSION

If you do a good job, you will earn much, and that is called commission.

It is the money you will receive when a customer uses your link to buy things, or fill in the survey forms, etc.

The commissions are different in different affiliate programs, sometimes it is the percentage or specific numbers.

Digital products’ commissions are higher than physical products’ ones. Because it doesn’t cost much to create the products, mostly based on intelligence while making physical products requires time, sales.

Commissions can fluctuate for each customer.

When you choose a product to promote, you will see the commissions they suggest.

PHYSICAL PRODUCT

They are tangible products, such as fridges, clothes, TV, wardrobes, cutleries, etc.

As I mentioned before, commissions of physical products are not really high, fluctuate from 3% to 10% of that product’s price. If you do in CPO model, the commissions will be pretty high.

Physical products’ buying powers are enormous and yearly, therefore, low as the commissions are, the quantity can make up, and you can make a yearly and inactive earning.

DIGITAL PRODUCTS

Digital-Product

They can be used on computers in order to serve many purposes, mostly education, enterprises, computing, etc.

E.g. Online courses, software, online-selling tools are digital products.

These products are made once but can be sold to multi customers. Therefore, the commissions are super high, from 30% to more than 50%.

Some products even have the 100% commissions.

There are 2 popular affiliate networking for digital affiliate: Product Launch and Clickbank.

PROMOTE METHOD

It is the promoting form.

Even you are promoting others’ products to gain commissions, you must pour your heart and soul in as if they were yours. Because it has high potential in gaining profits.

There are many ways to promote, based on their own nature.

You also have to follow the rules about promoting that the advertisers and network gave out.

Physical products have low commissions so you have to choose the form that requires less fee ( like SEO), and as for the high commissions products, you can promote in various forms, even pay for ads, as long as you gain profits.

PAYMENT METHOD

Payment-Method

It is the method that the advertisers or network will pay you.

If you work domestically, you only need a bank account. And if it is international, then Payoneer or Paypal is the best choice. They are the two most popular accounts that everyone in MMO should have.

The payment process takes 1-3 months since the day the customer brings you commissions. However, some network still pay weekly like KTcity or Adflex.

LANDING PAGE

Landing Page

This is for selling and the advertiser creates it. When a customer clicks on the affiliate link, they will access to the page to order or fill in information.

Some companies use A/B testing to their sale page, therefore it is flexible.

PRELANDING PAGE

Or aka Prelander

This is also a type of landing page, but it will help optimize your earnings and increase the change rate before you let users in the official landing page.

Prelanding page is like a steppingstone to build a bridge between goal customers and sellers.

Instead of pouring traffic directly from advertising channel into landing page, potential buyers find it not persuasive enough, prelander is the best tool to boost the buying process.

Popular prelander:

  • Success stories
  • Common sense science shares product information
  • Review, In-real-life experiences

COUPON AND CUSTOM COUPON

It is the discount code that advertisers provide to affiliate so they can boost the sales.

Depends on the affiliate program, coupons can be attached to you affiliate link, that means you can create a distinct link for this coupon, when a customer clicks on affiliate link, the price will automatically decrease.

Or maybe the coupons will be separate, when promoting. tell you customers to enter coupon when paying, the price will be reduced by xx% or reduced with a specific amount.

Many top affiliates will be offered special discount codes that are only for that affiliate, it is called a custom coupon or exclusive coupon.

This coupon can give customers a better discount than common coupon, or it can always carry the brand name of an affiliate.

CLOAKING LINK

Link Cloaking

Affiliate links often look very clumsy and unprofessional, because it is a separate link performing the role of control and measurement.

So if you want the affiliate link to be more concise and professional, you should use the link shortening method according to your domain name, this method is called cloaker link.

However, whichever affiliate program you work with, read carefully the terms for affiliate there, because there are some large affiliate programs (e.g. Amazon), will not let you shorten the link, because they need to check, measure which pages your customers are coming from.

Cloaking link technology is also used for more advanced purposes such as tracking clicks with its own system, performing A/B testing or changing affiliate links in anytime without creating ads.

COOKIE

As in food? No, just kidding.

In affiliate marketing, cookies are files of affiliate programs, created to store customer browsing information.

For example, if a customer clicks on your affiliate link, the browser will save the cookie, and the time the cookie is saved depends on that affiliate program.

For example, if a cookie is stored for 60 days, then the customer doesn’t buy immediately, but within 60 days they go to the right computer, the same browser buys, the commission is still charged to you (but make sure he/she has not clicked on the affiliate link of another affiliate).

Depending on the affiliate program and the specific product there will be different cookies.

Cookie stuffing is a cookie trick. The mechanism is that when customers visit your website, the affiliate link will run to store cookies in the client’s computer without having to click on your affiliate link. The affiliate link will run in a small pop-up or automatically load itself in a very short time.

Most networks and affiliate programs today have algorithms that detect cookie stuffing and if you do this, your account will be quickly locked and no payment will be made.

LAST CLICK AND FIRST CLICK

Here are the commission calculation mechanisms decided by the advertiser.

When a customer clicks on the affiliate link of publisher A first, but does not buy, after a few days they click on the affiliate link of publisher B. If the commission is calculated for:

    +    Publisher A: First Click

    +    Publisher B: Last Click

For fairness in competition among publishers, affiliate programs nowadays are almost done under the mechanism of last click.

CPA (COST PER ACTION)

This is an affiliate marketing method that advertisers or network will pay you a commission when customers take an action through your affiliate link, this action can be buying, filling out a form, registering, completing surveys, close, etc.

Depending on the level of action, the commission can be high or low, for example, Cos Per Lead (CPL) is very simple, and the conversion can happen easily, the commission will be low, and the purchase (PPS) is a more unlikely event so the commission will be high.

CPS, CPL, CPO, CPI

These are the types of affiliate marketing that tell you how much commission you will receive when a customer completes an action.

  • CPS (Cost Per Sale) is an affiliate marketing program where advertisers or networks will pay you a commission when customers buy from your affiliate, customers have to make a successful payment and the payment is verified then the commission will be yours.
  • CPL (Cos Per Lead) is an affiliate marketing program where advertisers or networks will pay you a commission when there are customers filling in their personal information through your affiliate marketing.
  • The information that customers fill out is usually email, name, address, phone number, etc. companies providing products and services often need this information to market to customers. The information will be validated, the commission will be calculated for you.
  • CPO (Cost Per Order) is an affiliate program where advertisers or networks will pay you a commission when the customer completes the order & the call center confirms successfully. You will not need to wait when customers receive goods & pay.
  • CPI (Cost Per Install) is an affiliate program that advertisers or networks will pay you when customers install the app successfully.

EARN PER CLICK (EPC)

It is an indicator that most affiliate programs have statistics and show you, it will calculate the average of each click of customers, how much money you can make (can be seen for each product, or the whole process of making affiliate marketing)

CONVERSION RATE (CR)

It is the conversion rate per 100 customers, calculated in of%.

For example, there are 100 people who click on your affiliate link, but only 7 people complete the action and bring you a commission, the conversion rate is 7%.

COST PER 1000 IMPRESSION (CPM)

CPM (cost per 1000 impression) is the cost of advertising for 1000 impressions.

Some platforms allow you to place ads based on CPM, you just need to show ads to users and it will start paying you.

ADVERTISING NETWORK (ADS NETWORK)

It is the company that provides the ads network. This means you will buy ads on these networks.

When you do affiliate marketing, you also need to promote your products in many ways. For some products with high commission, beside finding free customers, you need to find the right networks to run ads that bring higher revenue.

SEARCH NETWORK

It is a form of advertising of the Advertising Network, which means when customers do a search for something, your ads will be displayed along with the search results that customers see.

Ads networks often make ads stand out more than regular search results so that customers have more click-through rates on ads.

DISPLAY NETWORK

It is a form of advertising of the Advertising Network, it means that your ads will be displayed to users on the websites, applications, … that users are using under the permission of the service provider and according to your own set-up.

Popular display ads are Facebook Ads and Google Display Network (GDN).

Banner Ad, also known as web banner, is an advertisement that places an image (.jpg, .png, .gif) on the website. This type of advertisement will usually be embed a code into website to display.

Also it can. be displayed according to the image file placement and insert links.

The purpose of banner ads is to promote the brand or to leverage traffic from the website to send users to the landing page of purchase.

Paid Traffic

Paid traffic is a form of paid advertising that is used to drive traffic to your specific website, sales page or landing page.

There are many forms of advertising based on CPA (cost per action), CPM (cost per 1000 impressions) and banner ads.

The most popular and effective paid traffic channels are:

  • Sales on a personal profile
  • Sales on Fanpage
  • Build website & SEO top Google
  • Building channels, videos & SEO top Youtube, etc.

BIDDING

Bidding is a term that means bidding only in advertising, bidding price is the maximum amount you accept to spend for 1 click or 1000 ad impressions.

2 common bid types are CPC and CPM:

  • Cost Per Click (CPC): The amount you pay for a click from customers when running ads.
  • Cost Per Impression (CPM): Also known as cost per thousand impressions, is the amount you have to pay for 1000 ad impressions.

SEO (SEARCH ENGINE OPTIMIZATION)

It is optimizing your website to be suitable for both users and search engines, this job is very important, it helps your website to rank well when users search for relevant keywords. .

SEO is a long process that you must learn and practice daily if you want to make money with affiliate marketing.

Whether you have a big or small budget, you should still use SEO because affiliate marketing revenue from free visits from Google is huge.

SEO knowledge is very wide, a lot of different factors, but the factor that is most appreciated by Google is the quality of your website content, so the first job you need to learn in SEO is to create produce high value content for users.

CONTENT MARKETING

content_be-a-content-publisher

It is a form of marketing using good content. You use reasonable content tactics to reach customers, thereby gaining trust and persuading them to buy.

Nowadays, online marketers understand the importance of content marketing and  a lot of creative and interesting content marketing strategies.

Content marketing is not just about text content, articles, but also content for viral videos, story videos … content will help products & brands convey messages to customers.

HOSTING

To build a website, you need a place to store data. Hosting is a data storage space, it stores your content, images, databases while making a website.

There are many different hosting providers, free of charge, also available.

DOMAIN

It can be seen as an address to your website. It will be connected to hosting so that when a user types your domain name into the browser, it will automatically display the content you have configured on hosting.

Domain is used widely and containing the highest trust and confidence is the .COM domain, followed by the .NET domain and the .ORG domain, but I still recommend that you choose .COM domain.

About David Williams

Hello all of you, I’m David Williams, a member of a team dedicated to evaluating technology products. Our team consists of 5 members, each member has strengths in each field such as Plugin, Theme,SEO and Software … So we could make the most accurate comments according to our experience. We only sell really good products and bring benefits to our customers. Especially, the beginners in their field, we guarantee these products that we evaluate will bring high efficiency for your work. If you want to find inefficient products, this is not the place for you, we never promote the product is not quality and not bring efficiency to customers.

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