Affiliate marketing is the practice of one website publishing promotional content (such as affiliate blogs or ads) for another business’ products or services. The affiliate (who publishes the promotional content) is paid only when the content or ads on their site contribute to sales for the business partner, as opposed to ad networks, where sites are paid simply for displaying a business partner’s ads to site visitors. Affiliate-derived conversions are tracked according to a special cookie attached to web visitors who arrived via the affiliate’s site.
One of the important things to know before you start promoting another person’s product (or looking for people to promote your product) is to understand the lingo used in affiliate marketing and CPA Networks. Below is a list of the most common terms associated with the CPA industry… Advertiser - Can also be called a merchant, [...] One of the important things to know before you start promoting another person’s product (or looking for people to promote your product) is to understand the lingo used in affiliate marketing and CPA Networks. Below is a list of the most common terms associated with the CPA industry…
Advertiser- Can also be called a merchant, retailer, e-retailer, online retailer, etc. This is the website that SELLS the product or service. They will also process the payment and fulfill the order.
Publisher- Can also be called the affiliate, partner, associate, or reseller. This is the third party who PROMOTES the product or service in exchange for a commission or other type of compensation.
Pay-Per-Lead- The commission structure where the affiliate is paid a flat fee for each qualified lead (this is usually achieved by a visitor entering their personal information on an advertiser’s website).
Cost-Per-Lead (CPL)- The amount of money paid per qualified lead.
Earnings-Per-Click (EPC)- This is a metric to measure the effectiveness of being able to turn a click into commissions.
Cost-Per-Action (CPA)- This is the rate/fee that is set for every action that is taken by on visitor which is promoted by an affiliate. This usually refers to, by not limited to, Pay-Per-Lead and Pay-Per-Sale transactions. CPA, as Cost-Per-Action usually corresponds to Pay-Per-Lead while CPA, as Cost-Per-Acquisition usually corresponds to Pay-Per-Sale.
Pay-Per-Click (PPC)- The amount or percentage paid for each click that is made on a link, banner or product on an publisher’s website. Many people use search engine pay-per-click, such as Google Adwords, are called PPC Advertisers. When you use Google Adsense on your website to generate revenue, you are PPC Publisher.
Cost-Per-Click (CPC)- The amount or percentage paid for each click.
Effective Earnings-Per-Click (eEPC) - This is very similar to the EPC definition but in this case, if it referring to the effectiveness of being about to turn 1000 clicks into commissions. (Where CJ is 100 clicks/$, eEPC is 1000 clicks/$)