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Affiliate Marketing Glossary

Affiliate marketing is defined as the process of advertising that is considered as a trend nowadays for the Internet. E-commerce is booming and with the need to have the right marketing techniques, people need to get a better understanding of the different strategies present.

The process of affiliate marketing is quite easy, on the outside. Typically, the idea is to find another website connected to the product or services being offered. This is crucial as most search engines will only recognize web affiliates that are related to the product or industry of the main company. Once the list of affiliate websites are found, they will have to create ads such as flash banners, HTML tags, and links that will connect to the main website.

For many websites, they find it a profitable venture to be an affiliate. The reason they have is that once the links or forms are clicked or filled up, they are given a commission by the main website. To be a successful affiliate marketer, the terms and words used in the technique must be learned. Here are just a few of the most used terms and words used in the affiliate marketing strategy.

Above the fold - this is the term used for content found on tip of the email messages without actually having the need to scroll down. Content located "above the fold" will typically be the first words that online customers will notice and take heed of.

Advertiser - this is the company or the person who will be selling the goods or the products. In some cases, the term merchant is also applied to this entity.

Affiliate - the entity is best known as the website that will be marketing and selling the ads. He is also the one that will be earning commissions for every referral he is able to send out.

Agreement with affiliates - this is the contract between the parties that indicates the commissions and the terms that govern the business relationship.

Affiliate link - most of the time, this term is used as a means to describe the process of sending the web traffic to the main seller. Typically, there will be assigned URLs that will connect the ads to the main website.

Affiliate program - the term is used as a way to depict and portray the marketing techniques of the website.

Affiliate software - more or less, there will be plenty of these programs being offered in the market. Each will come with its own set of features, which makes it useful for the business entity using it. It is the solution that supports the creation of ads, links, and tracking of the affiliate movements.

Affiliate tracking - people or business organizations using the strategy wants to know the progress of the different affiliates. Hence, they use this term as a way to determine the movements of the members to the affiliate marketing program.

Auto-approve - affiliates will usually send referrals to the main website, and this is the term loosely used to indicate their approval or acceptance to the said customer.

Banner ads - advertising materials will be the core of the marketing strategy. The banner ads will be the most common and most used materials to sell and market a business product or service.

Charge back - there are certain times that a sale or customer referral will be returned back to the affiliate because it is unacceptable. This is the words used to portray such action.

Click through - the steps or actions that an online user takes to click on an ad and is transferred to the main product website.

Commission - the financial rewards that an affiliate receives upon an approved referral.

Cost per Action (CPA) - the typical expense that a company has for every conversion of a lead or a referral.

Cost per Click (CPC) - the cost of a single click to the main company.

Cost per Thousand - a term used to indicate a normal thousand impressions with the use of banners.

Impression - the level or the number of times a banner was displayed.

Manual approval - the process of validating a possible referral claim and approving it without any presence of an automated software.

Privacy policy - this is the protocol required for the sharing of certain information online. Typically, the standards set will be those administered over by the World Wide Web Commission. This is also a guide system for the amount or the extent of information that will be required from the prospective customer.

Pay per sale - the action of rewards wherein the main company only pays a commission to the affiliate when the lead is converted to a sale.

Pay per lead - this is the program procedure where companies will only pay for the referrals that are made into leads. These transactions would usually include software downloads, sign-ups on the forms, or test trials for a product.

Pay per click - the commission basis for this affiliate marketing strategy usually occurs on the very moment an online visitor clicks on the links and the ads on the affiliate site.

Performance based marketing - a term used to pay merchants when there is the conversion of a sales and possible leads to a new customer.

Residual earnings - typically, this is an earning phase where the affiliate will be earning profits even after a first sale has happened.

Spider detection - the process where the system detects the automated spiders and bots found online.

Tracking methods and systems - the type of system used to keep notice of possible leads and sales.

Best Affiliate Software to Setup Affiliate Program

Omnistar Affiliate Software is the leader in affiliate tracking software. You can easily setup an affiliate program to grow your business in under 10 minutes. The software is extremely easy to use and very powerful. Omnistar is used by thousands of companies to start an affiliate program.