For those who are new to the world of Affiliate Marketing, there are several terms that are used that might be different.
As a public service, we would like to give a vocabulary list for those who are not familiar with the Affiliate Marketing world.
Advertiser (or Merchant): An Advertiser (or Merchant) is a company that is selling a product or service.
Publishers: A publisher is a company that advertises a product or service from an Advertiser in exchange for an agreed upon commission rate.
Customer (or Consumer): The recipient of the publisher’s advertisement.
Affiliate Network: A value-added intermediary providing services, including aggregation, for advertisers and publishers.
Conversion: The desired result that a customer takes when receiving an advertisement. Conversion can be defined as a sale, click, or lead.
Conversion Rate: The percentage of visitors who take the desired action determined by the advertiser.
Commission: A fee paid by an advertiser to a publisher for completing the desired action. This can be calculated as a percentage or flat fee.
Cost Per Action (or Acquisition): A pricing model where an advertiser pays a publisher a commission for the desired result. This differs from the other two most common online pricing models Cost Per Click (CPC) and Cost Per Thousand Impressions (CPM).
Attribution: The process of identifying which set of user actions (or events) that contribute to conversion. The three most common models are First Click, Last Click, and Linear attributions models.
First Click Attribution: An attribution model that credits 100% of the sale or result to the first touchpoint in the conversion tunnel.
Last Click Attribution: An attribution model that credits 100% of the sale or result to the last touchpoint in the conversion tunnel. Most affiliate programs (including Commission Depot) go off of a last click attribution model.
Linear Attribution: An attribution model that equally credits each touch point in the conversion tunnel. Example: A publisher sends an email newsletter and the customer opens that email clicks through to the website, afterward the customer search on Google for the product on a review page. From there, the customer finally purchases the product. This would result in each channel receiving equal credit for the sale vs the first or last channel receiving credit.
Attribution Window: The maximum length of time between click and conversion that an advertiser must include when calculating the revenue from a click.
Vertical: The businesses and marketers cater to the needs of a specific group of people within an industry.
Terms and Conditions: The set of rules and guidelines that a user must agree to in order to use your website.
Those are the basics in terms of terms you will see and here often. Are there any terms that you have run into often that you didn’t know when you first arrived into the affiliate marketing space? Let us know and we can add it to the list.