Affiliate Marketing Definitions!

DEFINITIONS


Affiliate – Also referred to as Publisher in affiliates marketing, is an individual or group of individuals who promotes a merchant's web business expecting a compensation or commission. Compensation or commission may be made based on a certain value for each exposure, visit, registrant, sale or any combination of them.


Merchant – Also referred to as Advertiser in affiliates marketing, is a commercial dealer who hires affiliates to promote their web business in exchange for compensation and/or commission. Compensation or commission may be made based on a certain value for each exposure, visit, registrant, sale or any combination of them.


Cookie - A script executed on computers for the collection of information and stored on the local computer of a person when he/she loads a website. Cookies are commonly used to identify which affiliate a merchant needs to pay when a consumer creates a lead or makes a purchase.


Commission – A commission is a financial incentive received by an affiliate for generating some action for a merchant such as generating a lead or a sale on the merchant's website.

EPC (Earnings Per 100 Clicks). Affiliates are being paid for the actual leads or sales generated for our merchants rather than on the number of clicks the affiliates generate for the merchants. In this regard, EPC shows the correlation between the number of clicks generated by the affiliates with the actual payment being received.


PPI (Pay-per-impression) / CPM (Cost-per-thousand). Affiliates get from Merchants a certain amount of money for every 1000 impressions /page views/displays of an advertisement. The Ad can be text, banner image or rich media.


PPC (Pay-per-click) / CPC (Cost-per-click). Merchant pays affiliates a certain amount of money, every time a visitor clicks on the advertiser's Ad. It is irrelevant how often an Ad is displayed. The commission is only due when the Ad is clicked.


PPL (Pay-per-lead) / CPA (Cost-per-action/acquisition) / CPL (Cost-per-lead). Merchant pays affiliates in commission for every visitor that was referred by the affiliates to the Merchant and performs a desired action, such as filling out a form, creating an account or signing up for a newsletter. This compensation model is very popular with online services from internet service providers, cell phone providers, banks and subscription services.


PPS (Pay-per-sale) / CPS (Cost-per-sale). Merchant pays the affiliates a percentage (%) of the order amount (sale) that was created by a customer who was referred by the publisher. This form of compensation is also called as Revenue sharing.

Via - http://www.affiliatebot.com/