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Affiliate Marketing Glossary

Master the language of affiliate marketing. From CPA to EPC, learn all the essential terms and concepts.

A

Above the Fold
The portion of a webpage visible without scrolling. Placing affiliate links and calls-to-action above the fold typically results in higher visibility and click-through rates.
Affiliate Disclosure
A statement informing readers that content contains affiliate links and the author may earn commission from purchases. Required by FTC guidelines and builds trust with audiences.
Affiliate Link
A unique URL containing your affiliate ID that tracks clicks and conversions. When someone clicks your affiliate link and makes a purchase, you earn a commission.
Affiliate Manager
A representative from an affiliate program who helps affiliates optimize their campaigns, provides promotional materials, and addresses questions or concerns.
Affiliate Network
A platform that connects merchants with affiliates, handling tracking, reporting, and payments. Examples include CJ Affiliate, ShareASale, and Impact.
Affiliate Program
A marketing arrangement where a company pays affiliates commission for driving sales or leads through promotional efforts. Also known as partner programs or referral programs.
Attribution
The process of identifying which marketing touchpoint or affiliate should receive credit for a conversion. Common models include last-click, first-click, and multi-touch attribution.
Average Order Value (AOV)
The average amount customers spend per transaction. Higher AOV typically means higher affiliate commissions for percentage-based programs.

B

Banner Ad
A graphical advertisement displayed on websites to promote products or services. Affiliates use banner ads provided by merchants to attract clicks and generate conversions.
Bounty
A fixed one-time payment for a specific action, typically a new customer signup or sale. Common in subscription services where bounties can range from $50 to $500+.
Buyer Intent
The likelihood that a visitor intends to make a purchase. Keywords and content targeting high buyer intent typically convert better for affiliate marketing.

C

Chargeback
When a customer disputes a credit card transaction and the payment is reversed. Chargebacks can result in commission reversals for affiliates.
Clawback
The practice of reclaiming commissions that were previously paid to an affiliate, typically due to refunds, cancellations, or fraudulent transactions.
Click Fraud
The practice of artificially inflating click counts on affiliate links, either through bots or manual clicking. Most programs have systems to detect and prevent click fraud.
Commission
The payment an affiliate receives for generating a sale, lead, or other desired action. Can be a percentage of the sale price or a flat fee.
Commission Rate
The percentage or fixed amount an affiliate earns for each qualifying action. Rates vary widely by industry, typically ranging from 1% to 50% or more.
Comparison Content
Content that compares two or more products or services, helping readers make informed decisions. Highly effective for affiliate marketing due to high buyer intent.
Conversion
When a referred visitor completes a desired action such as making a purchase, signing up, or filling out a form that results in affiliate compensation.
Conversion Rate
The percentage of visitors who complete a desired action (such as making a purchase) after clicking an affiliate link. Calculated as conversions divided by clicks times 100.
Cookie Duration
The length of time a tracking cookie remains active in a visitor's browser. If the visitor makes a purchase within this window, the affiliate receives credit for the sale.
Cookie Stuffing
An unethical practice of placing affiliate tracking cookies on visitors' browsers without their knowledge or consent. This violates most affiliate program terms.
CPA (Cost Per Action)
A commission model where affiliates earn a fixed amount for each specified action completed, such as a form submission, app download, or account registration.
CPC (Cost Per Click)
A payment model where affiliates earn money for each click on their affiliate links, regardless of whether a conversion occurs.
CPL (Cost Per Lead)
A commission structure where affiliates earn payment for each qualified lead generated, such as email signups, quote requests, or trial registrations.
CPM (Cost Per Mille)
A payment model based on impressions, where affiliates earn a set amount per 1,000 ad views. Less common in affiliate marketing but used in some display advertising programs.
CPS (Cost Per Sale)
The most common affiliate commission model where affiliates earn a percentage or fixed amount for each sale generated through their referral links.
CTR (Click-Through Rate)
The ratio of users who click on an affiliate link compared to the total number who view the link. Calculated as clicks divided by impressions times 100.

D

Data Feed
A file containing product information (names, prices, images, descriptions) provided by merchants for affiliates to display products on their websites.
Deep Linking
Creating affiliate links that point directly to specific product pages or content rather than the merchant's homepage, typically resulting in higher conversion rates.
Direct Affiliate Program
An affiliate program run directly by a merchant without using a third-party affiliate network. Often offers higher commissions but requires individual account management.
Disclosure Statement
A clear notice informing visitors that a website contains affiliate links and may earn commissions from purchases. Required by FTC regulations in the United States.

E

EPC (Earnings Per Click)
A metric that shows the average earnings generated per 100 clicks on affiliate links. Used to compare the profitability of different affiliate programs.
Evergreen Content
Content that remains relevant and valuable over time, continually attracting traffic and generating affiliate commissions without frequent updates.
Exclusive Affiliate
An affiliate who has negotiated exclusive rights or special terms with a merchant, often including higher commission rates or unique promotional opportunities.

F

First-Click Attribution
An attribution model that gives full credit for a conversion to the first affiliate link or touchpoint that introduced the customer to the product.
FTC Guidelines
Rules from the Federal Trade Commission requiring clear disclosure of material connections between affiliates and the products they promote. Non-compliance can result in penalties.
Funnel
The path a visitor takes from initial awareness through to completing a purchase. Affiliates optimize funnels to maximize conversions at each stage.

G

GDPR
General Data Protection Regulation, an EU privacy law affecting how affiliates collect, store, and process visitor data including tracking cookies and email addresses.
Geo-Targeting
The practice of showing different affiliate offers or content based on a visitor's geographic location, often used to promote region-specific products or services.

H

High-Ticket Affiliate
An affiliate who focuses on promoting expensive products or services with higher commission payouts, often requiring fewer sales to achieve significant income.
Hybrid Commission
A commission structure combining multiple payment types, such as an upfront bounty plus recurring commissions, commonly used by SaaS companies.

I

Impressions
The number of times an affiliate link, banner, or promotional content is displayed to potential customers, regardless of whether they interact with it.
In-House Affiliate Program
An affiliate program managed directly by a company using their own software, rather than through a third-party network. May offer better rates but less support.
Influencer Affiliate
A content creator with a significant social media following who promotes products through affiliate links, often combining sponsorship deals with affiliate commissions.

L

Landing Page
A dedicated web page designed to receive traffic from affiliate links and convert visitors into customers or leads through focused messaging and clear calls-to-action.
Last-Click Attribution
The most common attribution model that credits the final affiliate link clicked before a conversion with the full commission.
Lifetime Commission
A commission structure where affiliates earn ongoing payments for as long as the referred customer remains active, common with subscription-based products.
Lifetime Value (LTV)
The total revenue a customer generates over their entire relationship with a business. Important for evaluating recurring commission programs.
Link Cloaking
The practice of disguising affiliate links using shorter, cleaner URLs. Improves aesthetics, enables click tracking, and protects commissions from theft.

M

Merchant
The company or individual that creates and sells products or services and pays affiliates commissions for referred sales. Also called advertiser or vendor.
Micro-Niche
A very specific, narrow market segment within a larger niche. Micro-niche sites can rank more easily but have limited traffic potential.
Multi-Touch Attribution
An attribution model that distributes credit for a conversion across multiple touchpoints in the customer journey, rather than crediting a single click.

N

Native Advertising
Promotional content designed to match the look and feel of surrounding editorial content. Often used by affiliates to integrate recommendations naturally.
Niche
A specific topic, market, or audience segment that an affiliate focuses on. Successful niche selection balances competition, traffic potential, and commission opportunities.

P

Payment Methods
The ways affiliate programs distribute earnings to affiliates, commonly including PayPal, direct deposit, wire transfer, check, or cryptocurrency.
Payment Threshold
The minimum earnings an affiliate must accumulate before they can withdraw or receive payment from an affiliate program.
Payout Threshold
The minimum earnings an affiliate must accumulate before they can withdraw or receive payment from an affiliate program.
Performance Bonus
Additional commission or rewards offered to affiliates who exceed certain sales targets or performance metrics within a specified period.
PPC (Pay Per Click)
A model where affiliates pay for advertising based on clicks received. Often used to drive traffic to affiliate offers through platforms like Google Ads.
Product Review
Content that evaluates and recommends products, typically including affiliate links. One of the most effective content types for affiliate conversions.

R

Recurring Commission
Commission earned on an ongoing basis for as long as a referred customer remains a paying subscriber, common with SaaS and subscription products.
Referral
A visitor or customer who arrives at a merchant's website through an affiliate's link and can be tracked for commission purposes.
Refund Rate
The percentage of purchases that are returned or refunded. High refund rates reduce affiliate earnings and may indicate product or offer quality issues.
Residual Income
Ongoing earnings from past efforts, typically from recurring commission programs where affiliates continue earning as long as customers remain subscribed.
ROI (Return on Investment)
A measure of profitability calculated by dividing net profit by the cost of investment. For affiliates, this compares earnings to promotional expenses.

S

SaaS Affiliate
An affiliate specializing in promoting software-as-a-service products, often benefiting from recurring commission structures and high customer lifetime values.
Search Intent
The purpose behind a user's search query. Understanding search intent helps affiliates create content that matches what users are looking for and converts better.
SEO (Search Engine Optimization)
The practice of optimizing content to rank higher in search engine results, driving organic traffic to affiliate content without paid advertising.
Split Testing
Also known as A/B testing, this involves comparing two or more versions of content, landing pages, or calls-to-action to determine which performs better.
Sub-Affiliate
An affiliate recruited by another affiliate in a two-tier program. The original affiliate earns a percentage of the sub-affiliate's commissions.
Sub-ID
Additional tracking parameters added to affiliate links that help identify traffic sources, campaigns, or content pieces for optimization purposes.
Super Affiliate
A top-performing affiliate who generates significantly higher sales volume than average affiliates, often receiving special commission rates and support.

T

Text Link
A hyperlinked piece of text that serves as an affiliate link, typically more effective than banner ads due to natural integration into content.
Tracking Cookie
A small file stored in a visitor's browser that identifies them as being referred by a specific affiliate, enabling commission tracking for future purchases.
Tracking Pixel
A small piece of code placed on a merchant's website that records when a conversion occurs and attributes it to the correct affiliate.
Traffic Source
Where visitors to an affiliate's content originate from, such as search engines, social media, email, or paid advertising.
Two-Tier Program
An affiliate program that pays commissions on two levels: direct sales you generate and a percentage of sales made by affiliates you recruit.

U

Unique Clicks
The number of individual visitors who click on an affiliate link, counting each person only once regardless of how many times they click.
Upsell
When a customer purchases a more expensive version or additional products after clicking an affiliate link. May increase commission on cart-wide earning programs.

V

Vertical
A specific industry or market segment, such as finance, health, or technology. Different verticals have varying commission structures and compliance requirements.

W

White Label
Products or services produced by one company that can be rebranded and sold by affiliates or partners under their own brand name.
Whitelist
An approved list of affiliates, websites, or marketing methods allowed by a merchant. Some programs require approval before certain promotional activities.

Glossary Overview

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Total Terms

19

Letters Covered

8

Commission Types

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