Affiliate Program (also known as an Partner or Associate Program)
This is where merchants / companies allow web site owners (affiliates, Partners
or Associates) to promote their products or services. This is done by the web
site owner placing merchants links on their site, when someone clicks on that
link and a valid transaction has taken place, then the affiliate will get a
commission (percentage of the sale).
An autoresponder is a piece of software that automatically replies to an
email message by sending a pre-composed reply that can be structured to include
images, text, PDF files etc. Many autoresponders can be set up to send multiple
follow-up messages at pre-defined intervals, or in response to certain actions
such as a recipient clicking on a link within a prior message.
Banner Programs / advertisements
Affiliates get paid by placing merchants banners on their site. These banners
are a graphical advertisement, typically 468 pixels wide by 60 pixels tall.
Affiliates normally get paid per 1000 impressions, per sale, or per
Click Through Rate (CTR)
Stands for click-through ratio or click-through rate, and refers to the number
of ad impressions required to generate a click-through (i.e. to "persuade" a
visitor to click on the link referenced by the ad), expressed as a percentage.
In other words, if it takes 20 ad impressions to generate one click-through,
this represents a CTR of 5%.
Cost Per Action (CPA)
Many advertisers consider CPA the optimal way to buy online advertising, as an
advertiser only pays up when the desired action has occurred. An action can be
something as simple as sending a visitor to another web site.
Cost Per Click (CPC)
Here advertisers pay only when their ad is clicked, this isn't the same as CPS
or CPA above since it really doesn't matter what the visitor does once they
arrive at the merchants web site. The merchant in this case is simply paying you
for a visitor... per click.
Cost Per Sale (CPS)
This is sometimes known as Pay Per Action or PPA and is an online advertising
pricing model where the advertiser pays for each specified action such as a
purchase of their product or service that was linked to the advertisement on
your web site.
Cost Per Thousand (CPM)
Stands for cost per thousand (think of the Roman numeral "M", which means
"thousand") and is usually used as a measure of the cost of displaying 1,000
advertisements of any kind (banners, text ads or any other form of ad that can
be tracked). For example, a CPM rate of $10 for banner ads means that it will
cost $10 to purchase 1,000 banner ad impressions.
Conversion Rate (CR or CR%)
In internet marketing, conversion rate is the ratio of visitors who convert
casual content views or website visits into desired actions based on subtle or
direct requests from marketers, advertisers, and content creators.
These are people that you directly refer to an affiliate program.
The "hit" is perhaps the most abused term in web traffic measurement. A "hit" is
recorded every time a web browser makes a request for a single item of
information, such as the HTML code underlying a web page, or the graphics on
This is where visitors are referred to an affiliate program by your direct
Landing page is the web page (on the merchant site) where your visitor is
redirected to after he/she clicks on your affiliate link.
Merchants (also known as an Advertiser)
A merchant is a company that sell products or services. As an affiliate you can
partner with these merchants and help them sell their products online. These
merchants pay affiliates/partners by: pay per lead or pay per sale.
Net 60, Net 30, etc
This is where a merchant pays it's affiliates 60 days after the month for the
Net 60 and 30 days after the month for the Net 30.
Opt-in is a consent-based method of subscribing people to a newsletter or
mailing list. In other words, people must actively "choose" to join the mailing
list by for instance inputting their email address into a signup form. Double
opt-in is a stronger form of opt-in, whereby a confirmation action is required
to activate a subscription, typically by means of an activation link embedded in
a welcome message sent to the subscriber's email address.
The flipside to opt-in, opt-out is a non-consensual method of subscribing people
to a mailing list. The fundamental difference between an opt-in and an opt-out
mailing list is that a person has to say "I'd like to JOIN this list" to get on
an opt-in mailing list, but they are included on an opt-out mailing list without
their consent, and have to say "I'd like to LEAVE this list" in order to get
taken off it.
Page Rank (PR)
This is Google’s system for ranking web pages. A page with a higher Page Rank is
deemed more important and is more likely to be listed above a page with a lower
Page Rank. Google describes Page Rank as: It relies on the uniquely democratic
nature of the web by using its vast link structure as an indicator of an
individual page’s value. In essence, Google interprets a link from page A to
page B as a vote, by page A, for page B. But, Google looks at more than the
sheer volume of votes, or links a page receives; it also analyzes the page that
casts the vote. Votes cast by pages that are themselves “important” weigh more
heavily and help to make other pages “important.”.
Pay Per Click (also known as PPC)
Merchants pay affiliates for each visitor that clicks on a text link or banner
that takes the visitor to the merchant's site. Affiliates are normally paid per
unique visitor to a merchant's site.
Pay Per Lead / Action
Affiliates receive a commission for each visitor they refer to a merchants site
that completes surveys, downloads, signups, etc.
Pay Per Impression (CPM)
Earn commissions without your visitors having to make a purchase from the
merchant's site, generate a click-thru, etc. All Affiliates have to do is place
either a banner or text link on their site that takes them to the merchants
site. Every time the banner or text link gets viewed the affiliate will get
paid. Affiliates normally get paid per 1000 impressions/page views.
Pay Per Click Search Engine (PPCSE, PPC Search Engine, Pay Per Bid)
These are search engines that allow you to earn on a pay per click basis. Their
advertisers also pay on a pay per click basis. If a visitor clicks on a bided
link that was referred by you, you'll then earn a percentage of the bided
amount. Webmasters are basically bidding to get the best (upper) page position.
so the more you pay for visitor's click, the higher your site link is positioned
on the search results page.
Pay Per Sale
An affiliate program that pays you a commission when you refer a visitor to a
merchant's site and they then buy a product or service from the merchant.
Affiliates usually get paid a percentage or a fixed rate of each product or
service they sell.
Pop Ups/Unders & Exits
These are advertisements or websites that displays in a new browser window.
These advertisements or websites normally popup the same time as your site, but
can be timed. A Pop-Under Ad will display behind your site so no one notices
that it is there until they leave your site. Exit ads popup once a visitor
leaves your site.
A Raw visitor is counted every time a page is viewed.
Affiliates send visitors to a merchant's site and if the visitor signs up to the
merchant's affiliate program, advertisers program, etc. then the affiliate will
either be paid a one of commission or a percentage of the referrals commission,
advertisers deposits for life, and so on ...
A search box is another way for affiliates to link to a merchant's site. It is
coded specially to access a web address that is built into the merchant's
database. So if a visitor wants to search for a product or service on a
merchant's site that you have affiliated with, then they can search for that
product straight from your site by using their search box. A Search Box is
especially used in Search Engine Affiliate Programs.
Text links are links that either describes a merchant's product, service or
their site. When the link is clicked on it will take you to the merchants site.
This way of linking is becoming ever more popular as you can make the link and
text look the same as the other content within your site. So your visitors won't
know if it is a link to another site or just a link to another page on your
A Unique visitor is counted every time a site is viewed every 24 hrs. E.g. If a
site receives a visitor at 2.30 PM and receives the same visitor at 6.30 PM on
the same day then it will be counted as just one visitor. If he had visited the
site 2.31 PM on the following day then it would have counted as two visitors.
These are affiliate programs that pays a commission for at least two-levels
deep. For example, if you refer a visitor to a merchants site and they become an
affiliate and he / she then refers someone and they also become an affiliate
then you'll be paid what you earn plus what your direct referral earns plus what
your indirect referral earns up to two levels deep.