Affiliate Program Terms (1)
Discussing about affiliate program, we have to knows basic terms usually or frequently used. Here are terms used when describing affiliate programs and the most common definitions:
Affiliate, Merchant, Commission, Affiliate Program, Pay-per-sale, Pay-per-lead, Pay-per-click, Pay-per-impression, Pay-per-impression, Conversion ratio, Click-Through Ratio, CPM, Two-Tier Commission, Residual Commission.
Affiliate: An independent party that promotes the products or services of a merchant in exchange for a commission.
Merchant: A company that has set up an affiliate program and has agreed to share a commission with affiliates that promote their site, products or services.
Commission: An amount of income you receive for referring a sale, lead or click to a merchant's site.
Affiliate Program: an affiliate program is any type of revenue sharing program where an affiliate web site receives a portion of income for delivering sales, leads, or traffic to a merchant web site
Pay-per-sale: A program where you receive a commission for each sale of a product or service that you refer to a merchant's web site. Generally offers the highest commissions and the lowest conversion ratio.
Pay-per-lead: A program where you receive a commission for each sales lead for a product or service that you refer to a merchant's web site. Generally offers mid-range commissions and mid-range to high conversion rations.
Pay-per-click: A program where you receive a commission for each valid click (visitor) you refer to a merchant's web site. Generally offers low commissions (range of $0.01 to $0.25 per click), and a very high conversion.
Pay-per-impression: A program where you receive a commission each time a merchant's ad or link is displayed on your site. Generally offers the lowest commissions, but a nearly 100% conversion, often resulting in the highest earnings potential.
Conversion ratio: The ratio of visitors from your site that are 'converted' to a sale, lead or click, and go on to earn the you a commission.
Click-Through Ratio: The percentage of visitors who click-through on a link to visit the merchant's web site. Pay-per-click program earnings are highly dependent on click-through rations. You can improved this ratio by a variety of means: making links more visible to visitors, adding personal comments or testimonials about the benefits of a product, or even reducing the number of possible links that a visitor can follow.
CPM: The practice of calculating a cost per thousand ad displays. It is used with programs that pay on a impression basis, with the CPM rate being the amount you earn for every 1000 times an advertisement is displayed.
Two-Tier Commission: Two-tier, or multi-tier, refers to the practice of an affiliate merchant paying commissions to both the affiliate that referred a sale, lead or click, but also to the affiliate that referred that affiliate to the program.
Residual Commission: Residual commissions refer to programs that provide affiliates the ability to earn an income month after month for referring a sale to a merchant.
Affiliate, Merchant, Commission, Affiliate Program, Pay-per-sale, Pay-per-lead, Pay-per-click, Pay-per-impression, Pay-per-impression, Conversion ratio, Click-Through Ratio, CPM, Two-Tier Commission, Residual Commission.
Affiliate: An independent party that promotes the products or services of a merchant in exchange for a commission.
Merchant: A company that has set up an affiliate program and has agreed to share a commission with affiliates that promote their site, products or services.
Commission: An amount of income you receive for referring a sale, lead or click to a merchant's site.
Affiliate Program: an affiliate program is any type of revenue sharing program where an affiliate web site receives a portion of income for delivering sales, leads, or traffic to a merchant web site
Pay-per-sale: A program where you receive a commission for each sale of a product or service that you refer to a merchant's web site. Generally offers the highest commissions and the lowest conversion ratio.
Pay-per-lead: A program where you receive a commission for each sales lead for a product or service that you refer to a merchant's web site. Generally offers mid-range commissions and mid-range to high conversion rations.
Pay-per-click: A program where you receive a commission for each valid click (visitor) you refer to a merchant's web site. Generally offers low commissions (range of $0.01 to $0.25 per click), and a very high conversion.
Pay-per-impression: A program where you receive a commission each time a merchant's ad or link is displayed on your site. Generally offers the lowest commissions, but a nearly 100% conversion, often resulting in the highest earnings potential.
Conversion ratio: The ratio of visitors from your site that are 'converted' to a sale, lead or click, and go on to earn the you a commission.
Click-Through Ratio: The percentage of visitors who click-through on a link to visit the merchant's web site. Pay-per-click program earnings are highly dependent on click-through rations. You can improved this ratio by a variety of means: making links more visible to visitors, adding personal comments or testimonials about the benefits of a product, or even reducing the number of possible links that a visitor can follow.
CPM: The practice of calculating a cost per thousand ad displays. It is used with programs that pay on a impression basis, with the CPM rate being the amount you earn for every 1000 times an advertisement is displayed.
Two-Tier Commission: Two-tier, or multi-tier, refers to the practice of an affiliate merchant paying commissions to both the affiliate that referred a sale, lead or click, but also to the affiliate that referred that affiliate to the program.
Residual Commission: Residual commissions refer to programs that provide affiliates the ability to earn an income month after month for referring a sale to a merchant.
posted by patihnambi at 10:50 PM
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