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Understanding Affiliate Marketing Terms

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Understanding Affiliate Marketing Terms


How the heck are you supposed to make your first million (or $3) with affiliate marketing when you can’t even understand the terminology?  Like any business industry, if you want to succeed with affiliate marketing online you need to develop a relationship with the many terms, acronyms and slang you will be exposed to on a daily basis.

To start things off, there are three primary players involved in every affiliate marketing transaction:

  • The Merchant – Typically a website owner, the merchant is the person who has the product or service and is interested in gaining more exposure and sales via performance based marketing.  The merchant ultimately calls the shots i.e. they decide on how much affiliates will be paid, as well as payment frequency.
  • The Network – The third party within most affiliate transactions is the network i.e. Clickbank.  The merchant agrees to distribute their product via the network for a price The affiliate network  agrees to deliver qualified affiliates as well as provide the technology needed to make the transaction run smooth.
  • The Affiliate – Also known as the publisher, the affiliate is you and I.  We are the people who join the networks and promote the products.  We get paid in commission based on our performance and the amount of sales we bring to the merchant via the network tools provided.

Here are some common affiliate and internet marketing acronyms:

  • CPA – Cost Per Action
  • CPC – Cost Per Click
  • CPS – Cost Per Sale
  • CTR – Click-Through Rate
  • PFI – Pay For Inclusion
  • PFP – Pay For Performance
  • PPC – Pay Per Click
  • PPCSE – Pay Per Click Search Engine
  • PPL – Pay Per Lead
  • PPS – Pay Per Sale
  • PV – Page View
  • SEO – Search Engine Optimization
  • SEP – Search Engine Positioning

Understanding affiliate marketing terms is one thing – keep up with new terms is a whole other challenge!  Regardless, the more time you spend amongst the industry and it’s players, the more up to date you will be with the latest and greatest happenings.

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