A Glossary of Affiliate Marketing Jargon Part I

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The world of affiliate marketing is full of jargon and industry terms that new comers may not be clear on what they mean. In this article we'll look at some quick definitions of these terms so that when you see them you will know what they mean.

Affiliate marketing is just one aspect of Internet marketing, and these words are fundamental to the business of pre-selling online offers for merchants.

If you're interested in trying your hand at affiliate marketing, these are terms that you will get to know intimately.

Advertiser: This individual is the merchant or the one offering the product or service for sale. The advertiser pays the affiliate a commission when they send a buyer to their site and a purchase is made.

Affiliate: This individual earns a commission for referring visitors who make a purchase, or just clicks and leads to the merchant's website.

Affiliate Agreement: This document governs the relationship between merchants and affiliates.

Affiliate Link: The unique URL which contains a link that tracks clicks from the traffic sent from the affiliate site to the merchant site.

Affiliate Manager: This individual runs the affiliate program for the merchant. They pay the affiliates, create reports and incentive programs.
Program

Affiliate Tracking: This is the process by which an affiliate's unique link is tracked.

Banner Ad: A graphic advertising image, which is often rectangular or square, which contains a hyperlink and advertises websites, products and services.

Charge back: Also referred to as a reversal, this is when the merchant takes back a commission paid to an affiliate due to returns, fraudulent activity, an invalid sale or a declined credit card.

Click-through: The result of a visitor clicks on a link leading to the merchant website.

Click-through ratio (CTR): This represents the percentage of people who view the link and click on it. For example, if an ad was displayed 100 times and got 30 clicks, the CTR would be 30%.

Commission: This is the payment an affiliate received for the sales or leads their traffic has generated for the merchant.

Cookies: A small bit of code stored in a text file and stored on the visitor's computer when they visit a merchant site. Cookies record and store, for a specific period of time, information which tracks things like which ad they clicked on and when, for the purpose of tracking the time between the click and the possible conversion.

We will continue with more definitions for the affiliate marketing jargon that you keep hearing and are never exactly sure what all of it means in part II of this article. For now keep in mind the fact that the affiliate marketing industry moves incredibly fast. You'll have to master the ability to focus in on mastering the skills that increase your revenues as an affiliate marketer while avoiding all of the distractions that pop up in the fast-paced world of affiliate marketing.

Affiliate marketing represents one business model for making money online. For more information about building and expanding your online business, visit http://mcreasite.com/blog today.
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