Newcomers diving into affiliate marketing for the first time face a barrier in the form of slang. Read on to find out the key terms you may face on your journey into the world of affiliate marketing.
An API (Application Programming Interface) is a set of rules, protocols, and tools that allows different software applications to communicate and exchange information with each other. In affiliate marketing, an API is used to integrate an affiliate program’s data, features, and functionalities with other software applications, such as affiliate networks, publishers, and advertisers.
APIs enable real-time data transfer between different systems, which can streamline affiliate tracking, reporting, and analysis processes. For example, an affiliate network may offer an API to allow publishers to access and retrieve data about their commissions, clicks, conversions, and other performance metrics directly from the network’s database. This can help publishers automate their reporting and analysis, and optimize their marketing strategies based on real-time data.
We can divide approve into two main parts. The first one is conversion approve, and the second is promotional approve. Let's work out what the difference is here.
Conversion approve in affiliate marketing refers to the process of verifying and validating an affiliate's referred traffic or leads, confirming they meet the advertiser's specific criteria. Once the criteria are met, the conversion is approved, and the affiliate is eligible to receive a commission from the advertisement. During the conversion approve process, advertisers may examine the traffic source, verification methods, and other factors to ensure that the conversion is valid, and the commission can, therefore, be approved. Overall, conversion approve is an essential part of affiliate marketing, as it ensures that both affiliates and advertisers benefit from legitimate and valid conversions.
In the second case, the term "approve" refers to the process of granting permission or authorization for an affiliate to promote or sell a particular product or service. This typically involves reviewing the affiliate's website or marketing strategies to ensure they are in compliance with the advertiser's guidelines and standards. Once an affiliate has been approved, they can receive commissions for any sales or leads generated through their promotional efforts.
Brand bidding is a strategy where an affiliate marketer bids on a brand's name or trademarked term through a search engine advertising platform to attract traffic to their own website or affiliate links. This means that when a user searches for a brand or its products on search engines, they may come across the affiliate's advertisement instead of the brand's own website. The affiliate then earns a commission if the user clicks on their advertisement and makes a purchase. However, brand bidding can sometimes be considered unethical or even illegal if the affiliates violate the brand's terms and conditions or misuse the brand's trademarked terms for their own financial gain.
In ordinary terms, the cap is the limit that the advertiser sets for the affiliate. Caps can be imposed on a daily, weekly, or monthly basis and can refer to the total number of clicks, impressions, sales, or leads generated by an affiliate marketer. Once the limit is reached, the affiliate marketer can no longer earn commissions for that particular period. Caps are usually communicated and agreed upon by both the advertiser and affiliate marketer before they start the campaign.
A chargeback in affiliate marketing refers to the reversal of a commission payment made to an affiliate when the customer who made the purchase disputes the transaction through their payment provider. This can occur for a variety of reasons, such as fraud, a failed delivery, or a dissatisfaction with the product. When a chargeback is initiated, the merchant may cancel the affiliate's commission and even request that the affiliate repay the commission that was paid out. Chargebacks can have a negative impact on the affiliate's reputation and their ability to work with other merchants in the future.
A conversion is the desired action that a user takes on an affiliate marketer's website or the merchant's website, such as making a purchase, filling out a form, signing up for a newsletter, or downloading an app. In affiliate marketing, conversions are used as a metric to evaluate the success of an affiliate marketing campaign. For example, if a company pays its affiliates on a cost-per-acquisition (CPA) basis, a conversion occurs when a visitor to the affiliate marketer's website completes a desired action that results in a sale for the merchant. The affiliate marketer is then paid a commission for each successful conversion.
Internet cookies are small text files that are placed on a user's computer by a website. These cookies contain information about the user's interactions with the website and can be used to remember user preferences, track user behavior and allow for personalized experiences on the website.
In affiliate marketing, cookies are used to track the interactions between a user and an affiliate website. For example, when a user clicks on an affiliate link and is directed to the merchant's website, a cookie is placed on the user's computer. If the user makes a purchase on the merchant's website, the cookie will report back to the affiliate website and the affiliate will receive commission for the sale.
Cookies serve as the primary tracking mechanism in affiliate marketing and allow affiliates to be paid for the traffic and sales they generate for merchants. Without cookies, it would be nearly impossible to track user behavior and accurately compensate affiliates for their efforts.
Cookie lifetime (duration)
CR stands for Conversion Rate in affiliate marketing. It is the percentage of users that complete a specific, desired action after clicking on an affiliate link, such as making a purchase, submitting contact information, or signing up for a trial. In other words, it is the ratio of conversions to clicks. A higher CR means more effective and efficient affiliate marketing and helps affiliates earn more commission.
In affiliate marketing, creative refers to the visual or written content that is used to promote a product or service on behalf of a merchant. Creatives can include things like banner ads, email templates, text links, social media posts, and blog articles. The purpose of a creative is to entice potential customers to click through to the merchant's website and make a purchase, earning a commission for the affiliate marketer. Effective creatives are those that are eye-catching, high-quality, and relevant to the target audience's interests and needs.
CTR stands for Click-Through Rate, which is a metric used in affiliate marketing to measure the effectiveness of an advertisement or a link in driving traffic to a target landing page. It is calculated as the number of clicks received by an ad or link divided by the total number of impressions or views it has received. A higher CTR indicates that the ad or link is successful in generating clicks and driving traffic to the target page. This metric is important for affiliates and advertisers to evaluate the performance of their campaigns, optimize their strategies, and improve their conversion rates.
Deposit to registration rate is a metric used in affiliate marketing to determine the effectiveness of a particular campaign. It refers to the ratio of the number of depositors to the number of total registrations received through the affiliate’s marketing efforts.
By tracking the DR, affiliates can optimize their campaigns to attract more high-value leads and improve their overall performance. It is important for the affiliate and the merchant to agree on what counts as a qualified registration to ensure that the metric accurately reflects the performance of the campaign.
Fraud in affiliate marketing refers to intentionally deceiving the advertiser or affiliate network in order to generate fraudulent actions such as clicks, leads, or sales for which the affiliate receives a commission. This can include using fake or bot traffic to generate clicks, falsely claiming credit for actions that were not actually generated by the affiliate, or using stolen credit card information to make purchases.
Fraudulent activity can cost advertisers and affiliate networks significant amounts of money, and can lead to legal action against those who engage in such practices.
First-time deposit (FTD) in affiliate marketing refers to the initial monetary transaction made by a new customer referred by an affiliate to a merchant. The affiliate earns a commission from the merchant for every first-time deposit they referred. This commission typically varies from merchant to merchant and could be a fixed amount or a percentage of the deposit made by the customer. First-time deposits are an important metric for affiliates as they signify the success of their marketing efforts in driving new conversions and revenue for the merchant.
A funnel in affiliate marketing is a series of steps or actions designed to lead potential customers to purchase a specific product or service. It usually starts with an advertisement or lead magnet that attracts the potential customer and then directs them to a landing page or preland where they can learn more about the product or service being offered.
Once on the preland, the potential customer can be presented with more information and explanations about the product. Often you can find reviews from satisfied customers here, or the entire page can look like an article from a blog with native advertising of the product. The main purpose of the preland is to get the potential customer more interested in the product or service being advertised, thus increasing the likelihood that he or she will buy it.
After the preland, the user is taken to the landing page. Here, the user is directly informed about all the benefits of the product and is offered to buy it.
In summary, a funnel is a series of steps that helps guide potential customers toward a purchase of a specific product or service. It includes lead generation, marketing and sales conversion techniques.
GEO, or geolocation, refers to the process of identifying a user's physical location based on their IP address or other identifying information. In affiliate marketing, GEO targeting refers to tailoring marketing campaigns to specific geographic locations. This can be achieved by selecting affiliate products or offers that are relevant to a particular region, setting appropriate geo-targeting settings in ad networks, or customizing ad content to appeal to users in a specific location. GEO targeting can improve conversion rates by ensuring that marketing messages are tailored to the needs and interests of the target audience in a specific region.
A hold in affiliate marketing is a period of time during which a commission earned by an affiliate marketer is temporarily withheld by the advertiser or network. This is typically done as a precautionary measure to prevent fraudulent or questionable activity, such as false leads or sales, and to ensure that the commission is being earned legitimately. During the hold period, the advertiser or network reviews the affiliate marketer's actions and determines whether or not the commission can be paid. Once the hold is lifted, the commission may either be paid as normal or canceled if it is found to be fraudulent or in violation of the terms and conditions of the affiliate program.
KPI, which stands for Key Performance Indicators, is a set of requirements that an advertiser can impose on an affiliate's traffic. For example, one of the most common KPIs is that at least a certain percentage of the leads the affiliate attracts make a first deposit. If the affiliate's traffic meets the requirement over the reporting period (for example, a month), the advertiser pays a commission. Otherwise, the conversions are put on hold and will be considered along with the conversions of the next reporting period. Or, if the traffic does not meet the KPI criteria, the advertiser can restrict the affiliate's access to promote their offer.
A landing page is a standalone web page, typically designed with a specific goal or objective in mind, such as capturing leads or driving sales. In affiliate marketing, a landing page often serves as the final destination for a user who clicks on an affiliate link. This page is designed to provide information about a product or service being promoted and encourage the user to take a specific action, such as making a purchase or filling out a form. The success of an affiliate marketing campaign often hinges on the effectiveness of the landing page in converting visitors into customers.
Mislead in affiliate marketing refers to any deceptive tactic used by an affiliate marketer to trick users into performing a desired action, such as clicking on a link, subscribing to a service, or making a purchase. Misleading tactics can take various forms, such as false advertisement, bait-and-switch, fake reviews, fake news, and many others. Such practices harm the consumer's trust in the affiliate marketer and, ultimately, damage the reputation of the affiliate marketing industry as a whole.
Misleading practices are strictly prohibited in affiliate marketing and can result in severe consequences, such as account termination, legal action, and financial penalties.
NET terms (payouts)
NET terms in affiliate marketing refer to the payment arrangement between the advertiser and the affiliate. It is an agreement where the advertiser pays the affiliate a commission for each sale or lead generated through their unique affiliate link. The payment is usually made after a certain period of time, known as the NET Terms, which can be 30, 60, or 90 days. For example, if the NET terms are 30 days, the affiliate will receive payment for their commissions 30 days after the end of the month in which the sale was made. NET terms are a standard practice in affiliate marketing and help ensure that both parties are held accountable for their obligations in the agreement.
Postback (S2S) is a communication between the advertiser and the affiliate network. It's a notification that tells the network whether or not a conversion has occurred. When a user clicks on an affiliate link and completes a desired action, such as making a purchase, filling out a form, or signing up for a service, the postback is triggered. This information is then sent back to the affiliate network, allowing them to track and measure the performance of their affiliate marketing campaigns. Postbacks help ensure that affiliates are accurately tracked for the actions they drive, which in turn ensures that they receive the appropriate commissions.
A Prelander in affiliate marketing is a landing page that potential customers visit before they are directed to the actual sales page of an affiliate product. The purpose of a prelander is to warm up the prospect by providing valuable information related to the affiliate product. This information may include pre-selling, testimonials, product benefits, and FAQs.
The primary goal of a prelander is to increase the conversion rate of an affiliate product. By providing additional information about the product and building trust with the potential customer, the prelander aims to ensure that the prospect is more likely to buy the product when they are directed to the sales page.
Overall, a prelander is an essential tool for affiliate marketers to increase the effectiveness of their campaigns and generate higher commissions.
A reject or trash refers to a lead or a sale that was declined or rejected by the advertiser or merchant due to a variety of reasons. These reasons could be invalid or fraudulent leads, low-quality traffic, non-compliance with the advertiser's terms and conditions, or other issues. In some cases, a lead might convert to a sale, but the advertiser could still reject it if it doesn't meet their criteria for a valid sale. When this happens, the affiliate marketer does not receive payment or commission for the rejected sale.
A Smartlink in affiliate marketing is a type of link that redirects users to various offers based on their geographic location, device, and other predefined criteria. Rather than promoting a single offer, a Smartlink automatically detects the user's location and redirects them to the most appropriate offer for that particular country or region. It provides a customized experience for each user, resulting in higher conversion rates and maximizing revenue potential. Smartlinks are particularly useful for publishers who work with mixed traffic or with multiple affiliate programs across different niches and industries.
A tracker in affiliate marketing is a tool that is used to track important information about the performance of affiliate marketing campaigns. It helps to identify the traffic sources, the behavior of visitors, and the conversions that are generated from those sources. This information is tracked through unique links or codes that are provided to affiliates to target their promotional activities. This allows affiliates to track the performance of their campaigns, optimize their strategies, and make informed decisions about how best to allocate their advertising budgets. Overall, trackers play a vital role in the success of affiliate marketing campaigns by providing valuable insights into campaign performance.
In affiliate marketing, traffic refers to the number of visitors or clicks that are directed from the affiliate's promotional efforts to the advertiser's website or affiliate link. Traffic is crucial for an affiliate marketer because without traffic there will be no sales or commissions earned. By generating high-quality traffic, an affiliate can increase the likelihood of conversions and earn more revenue. There are various methods to drive traffic, including SEO, content marketing, paid advertising, social media marketing, email marketing, etc. It is essential to target the right audience to drive traffic to the appropriate offer and maximize earnings.
A traffic source refers to the channel through which visitors arrive at an affiliate marketer's website or affiliate link. This can include a variety of different sources, such as search engines, social media platforms, email marketing, PPC advertising campaigns, or affiliate networks. The effectiveness and profitability of each traffic source can vary depending on the niche, audience, and type of affiliate marketing program being used. Affiliate marketers typically track and analyze their traffic sources using trackers or google analytics to identify which sources are driving the most conversions and revenue. By understanding their traffic sources, affiliate marketers can optimize their campaigns and tailor their marketing strategies to attract more high-quality traffic to their sites or affiliate links and increase their earnings.
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