If you’re new to affiliate marketing, chances are that you’ve been stumped a few times by terms that look foreign.
Have no fear! The uhm… what did that cartoon say?
On this page, you’ll find a list of terms that are frequently used in affiliate marketing and the definitions. I try to explain them in simple terms so that you aren’t further confused.
Gravity? ROI? Quality score? You’ll find them all here plus links to pages that will explain further.
A
Affiliate marketing – a way for people to earn money by promoting products or services from an online company. Affiliate marketers earn a commission when someone buys something through the link or recommendation.
Affiliate network – a platform that connects merchants or advertisers with affiliates.
Affiliate link – A unique URL used to track referrals from an affiliate.
B
Backlink – a link on one website that directs users to another website. They are important for search engine optimization (SEO) because search engines like Google consider backlinks as a signal of the quality and relevance of a webpage. When a website has many high-quality backlinks from reputable sources, it can improve its search engine ranking.
Banner ad – A graphical advertisement of varying sizes displayed on a website.
Black Hat SEO – unethical or manipulative techniques used to improve a website’s search engine ranking in ways that violate search engine guidelines. These techniques often prioritize short-term gains over long-term sustainability and can result in penalties or bans from search engines. Examples of black hat SEO tactics include keyword stuffing, cloaking, link schemes, and content scraping. While black hat methods may temporarily boost a website’s visibility, they pose risks to its reputation and can ultimately lead to loss of organic traffic and credibility. Also see White Hat SEO.
Bounce Rate – The percentage of visitors who leave a website after viewing only one page.
Bounty – A flat fee paid for a specific action, like a sign-up or sale.
C
Commission – The payment an affiliate receives for a successful referral. This could be a percentage of the sale or an agreed-upon flat fee.
CPA (Cost Per Action) – a pricing model where advertisers pay affiliates a commission for a specific action taken by the referred customer, such as making a purchase, signing up for a trial, or filling out a form. Unlike other pricing models like Cost Per Click (CPC) or Cost Per Mille (CPM), where advertisers pay for clicks or impressions, CPA focuses on the desired outcome or action achieved by the affiliate’s marketing efforts. It’s a performance-based model that rewards affiliates based on the results they generate for advertisers.
CTR (Click Thru Rate) – a measure used in online advertising to see how many people click on an ad compared to how many people see it. It’s calculated by dividing the number of clicks on an ad by the number of times the ad was shown (impressions), and then multiplying by 100 to get a percentage. For example, if an ad was shown 100 times and clicked on 10 times, the CTR would be 10%. It helps advertisers understand how effective their ads are at attracting clicks.
D
Disclosure – the requirement for affiliate marketers to openly reveal their relationship with the products or services they’re promoting. This typically involves disclosing that they will earn a commission if a purchase is made through their affiliate link. It’s important for transparency and honesty, ensuring that consumers are aware of any potential bias or financial incentives behind the recommendations made by affiliate marketers. This disclosure can take various forms, such as a statement on a website, a disclosure badge, or a disclaimer in a social media post.
E
EPC (Earnings Per Click) – a metric used to measure the average amount of money earned for each click generated by an affiliate link. It helps affiliate marketers understand how effective their promotional efforts are in terms of generating revenue. EPC is calculated by dividing the total earnings generated by clicks by the total number of clicks received. It provides valuable insights into the profitability of specific marketing campaigns or affiliate partnerships.
F
FTC (Federal Trade Commission) – the regulatory body in the United States that oversees compliance with laws and regulations related to advertising, including disclosure requirements for affiliate marketers.
G
Gravity – a metric used to indicate the popularity and performance of a product within the ClickBank marketplace. It represents the number of affiliates who have earned a commission by promoting that product within a specific time period, typically the last 12 weeks. The higher the gravity score, the more successful the product has been in attracting affiliates and generating sales. It’s often used by affiliate marketers as a gauge to identify potentially profitable products to promote.
H
Hoplink – a unique URL or link provided by Clickbank that affiliates use to promote products or services provided by it’s advertisers. When a user clicks on a hoplink and makes a purchase, the affiliate earns a commission.
I
Impression – each time an advertisement or piece of content is displayed on a webpage or screen, regardless of whether it’s clicked on or interacted with. It represents the number of times an ad is viewed by users. Impressions are important for evaluating the reach and visibility of an advertising campaign or content piece. They help advertisers understand how many times their ad has been seen by potential customers, which is useful for measuring the effectiveness of the campaign in terms of brand exposure and awareness.
J
JV (Joint venture) – a business arrangement where two or more parties collaborate to work together on a project or campaign, often seen in affiliate marketing partnerships.
K
Keyword – a word or phrase that people type into a search engine when they’re looking for information, products, or services online. In the context of search engine optimization (SEO), keywords are important because they help websites rank higher in search results when they match the words or phrases users are searching for. Businesses and website owners often research and use relevant keywords in their content to attract more visitors to their website and improve their visibility on search engines like Google.
L
Landing page – a standalone web page designed for a specific purpose, usually related to marketing or advertising campaigns. It’s where visitors “land” after clicking on a link from an advertisement, search engine result, or other promotional content. The goal of a landing page is to encourage visitors to take a particular action, such as signing up for a newsletter, downloading a resource, making a purchase, or filling out a form. Landing pages are typically designed with a clear and focused layout, compelling content, and a call-to-action (CTA) to guide visitors towards the desired action.
Lead – a potential customer or prospect who has shown interest in a product or service. Generating leads typically involves getting people to provide their contact information, such as their email address or phone number, in exchange for something of value, like a free trial, ebook, or newsletter subscription.
Leadgen – short for lead generation, which means getting people interested in a product or service and collecting their contact information, like email addresses or phone numbers, to potentially turn them into customers.
M
Merchant – a business or company that sells products or services online and participates in an affiliate program. The merchant provides the products or services that affiliates promote and sell through their marketing efforts. They typically offer affiliate marketers commissions or other incentives for driving traffic, leads, or sales to their website. Merchants may range from individual entrepreneurs to large corporations, and they play a central role in the affiliate marketing ecosystem by providing opportunities for affiliates to earn income through promoting their offerings.
N
Niche – a specialized segment of a larger market. It’s a specific area or topic within an industry that caters to a distinct group of people with particular interests or needs. Finding a niche involves identifying a target audience with specific preferences, problems, or desires, and creating products or services tailored to meet those needs. Niche markets can be highly profitable because they often have less competition and allow businesses to focus on serving a smaller, but more dedicated, customer base. Examples of niches include organic gardening, vegan skincare, vintage fashion, or drone photography.
O
OTO (One-time offer) – A special promotional offer presented to customers after they’ve made an initial purchase or taken a specific action, commonly used in affiliate marketing to upsell additional products or services.
P
Publisher – an individual or organization that promotes products or services offered by merchants (advertisers) through various marketing channels, such as websites, blogs, social media platforms, email newsletters, or mobile apps. Publishers create and distribute content to attract an audience and then monetize their traffic by incorporating affiliate links or advertisements provided by merchants. When visitors click on these links or ads and take a desired action (such as making a purchase), the publisher earns a commission or other compensation from the merchant. Publishers play a vital role in driving traffic and sales for merchants in affiliate marketing programs.
Pixel – a tiny, invisible image or code snippet placed on a website to track user activity, such as visits, clicks, or conversions. Pixels are often used for conversion tracking, retargeting, and analytics purposes. When a user interacts with a website or performs a specific action, such as making a purchase or filling out a form, the pixel sends data back to the advertiser or affiliate network, allowing them to measure the effectiveness of their marketing campaigns and optimize their strategies accordingly.
Q
Quality Score – a metric used by advertising platforms, such as Google Ads, to measure the relevance and quality of advertisements, landing pages, and keywords. Higher quality scores can lead to lower costs and better ad placements.
R
ROI (Return on Investment) – a measure of how much money an affiliate earns compared to what they spend promoting products or services. It tells if the effort and money put into promoting the products are paying off or not. A positive ROI means the affiliate is making more money than they’re spending, while a negative ROI means they’re losing money. It helps affiliates know if their marketing efforts are effective and profitable.
Retargeting – a marketing strategy used to re-engage users who have previously visited a website but did not take the desired action, such as making a purchase. It involves displaying targeted advertisements to these users as they browse other websites or use online platforms, encouraging them to return to the original website and complete the desired action. Retargeting works by placing a tracking pixel or code snippet on the website, which allows advertisers to track users’ behavior and display relevant ads to them based on their past interactions. It’s a powerful technique in affiliate marketing for increasing conversion rates and maximizing the value of website traffic. It is also known as remarketing.
S
SEO (Search Engine Optimization) – a set of techniques used to improve the visibility of a website or web page in search engine results pages (SERPs). The goal of SEO is to increase organic (non-paid) traffic to a website by optimizing various factors such as keywords, content quality, website structure, and backlinks. By following SEO best practices, website owners can improve their rankings in search engine results, making it easier for users to find their website when searching for relevant information or products. SEO is essential for businesses and website owners looking to attract more visitors, increase brand awareness, and drive conversions.
T
Traffic – the number of visitors or users who access a website or web page. It’s a measure of the volume of people who visit a website within a certain period of time. Traffic can be organic, meaning visitors find the website through search engine results or referrals from other websites, or it can be paid, where visitors are directed to the website through advertisements. Increasing traffic to a website is a common goal for businesses and website owners, as more traffic typically translates to more opportunities for engagement, conversions, and revenue.
U
URL (Uniform Resource Locator) – the address used to locate a specific resource on the internet. It’s the string of characters that you type into the address bar of a web browser to access a webpage or other online content. URLs typically consist of several parts, including the protocol (such as “http://” or “https://”), the domain name (such as “example.com”), and the specific path or location of the resource on the server (such as “/page1.html”). URLs provide a standardized way to navigate and access information on the internet.
V
Vendor – a company or individual that creates and sells products or services, often through affiliate marketing programs where affiliates promote their offerings in exchange for commissions. Same as merchant or advertiser.
W
White Hat SEO – ethical and legitimate techniques used to improve a website’s search engine ranking, such as creating high-quality content and obtaining organic backlinks, as opposed to black hat techniques that violate search engine guidelines.
X
XML Feed – a structured data format used for exchanging information between different systems or platforms, often used in affiliate marketing to share product data, prices, and availability between merchants and affiliates. Also known as data feeds which are an available linking format for affiliates to promote an advertiser’s products.
Y
Z
Zero-click Search – a search engine result page (SERP) feature that provides direct answers to users’ queries, such as featured snippets or knowledge panels, without requiring them to click on any search results. This can impact the visibility and click-through rates of organic search results, including those from affiliate marketing websites.
Didn’t find the definition you were looking for?
I’m always updating this resource so let me know in the comment section what affiliate marketing term you’d like me to add to the glossary.
