When I got started in affiliate marketing I wish someone had
explained to me these 7 terms. It is imperative to know this information
if you are going to succeed in this industry.
Conversion Rate: This is the rate or percentage of customers who take an action that will result in earning a commission for you. This can happen from clicking on a banner, entering a lead, or actually making a purchase. To increase the conversion rate is one of the primary objectives of affiliate marketing.
Click through ratio: The click through ratio refers to the percentage of visitors who are directed to the merchant's site through a link. As with the conversion rate, affiliate marketing aims to improve the click through ratio by the means of various tools and elements, like web banners, text links, and lead capture forms.
Affiliate Agreement: It is a contract between the affiliate and the merchant that defines the terms of service based on which the affiliate will be rewarded for guiding traffic to the merchant's site. The affiliate agreement lays down the tools available at the affiliate's disposal, any restrictions, and the payment terms, among other things.
Affiliate Code: A unique code or link that is provided to the affiliate in order to better track the business results directly generated from the affiliate's marketing efforts. It is important for merchants who have multiple affiliate partners to implement this, as it becomes easier to track which affiliate networks are the most profitable for them.
Cookies: They are tiny text files that are captured on the customers' computers, which contain vital information for the company. For an affiliate marketer, cookies are important as they not only link back to the referring site, but also can track the time of entering a lead or clicking on a banner, to learn more about the time it takes them to convert to real customers.
Cost Per Click / Cost Per Action: These are methods of measuring the cost of your marketing efforts. Whereas cost per click refers to the amount of money that is invested every time the customer clicks on a particular link, cost per action means the amount of cost for a customer's action, such as making a purchase or entering a lead.
Merchant: The person who's product or brand the affiliate marketers are selling is known as the merchant. The merchant is responsible for paying the affiliates for generating demand for his product. While affiliate marketing may seem more profitable for the merchant, an affiliate marketer can also generate a lot of income by carrying out a successful campaign.
I hope these terms help you. I know when I started out in this industry I didn't know any of these terms. However knowing these words will give you a good basic understanding of how this industry works.
Two terms not mentioned so far are the cost to acquire a customer (CTA) and the average customer lifetime value (ACTV). Just like any business you need to know your cost to acquire a customer. When you know what it takes to acquire your customer and what the average customer lifetime value is, you can budget your time and money accordingly.
Thank you for reading this article on affiliate marketing terms. I hope and trust you found this useful.
Conversion Rate: This is the rate or percentage of customers who take an action that will result in earning a commission for you. This can happen from clicking on a banner, entering a lead, or actually making a purchase. To increase the conversion rate is one of the primary objectives of affiliate marketing.
Click through ratio: The click through ratio refers to the percentage of visitors who are directed to the merchant's site through a link. As with the conversion rate, affiliate marketing aims to improve the click through ratio by the means of various tools and elements, like web banners, text links, and lead capture forms.
Affiliate Agreement: It is a contract between the affiliate and the merchant that defines the terms of service based on which the affiliate will be rewarded for guiding traffic to the merchant's site. The affiliate agreement lays down the tools available at the affiliate's disposal, any restrictions, and the payment terms, among other things.
Affiliate Code: A unique code or link that is provided to the affiliate in order to better track the business results directly generated from the affiliate's marketing efforts. It is important for merchants who have multiple affiliate partners to implement this, as it becomes easier to track which affiliate networks are the most profitable for them.
Cookies: They are tiny text files that are captured on the customers' computers, which contain vital information for the company. For an affiliate marketer, cookies are important as they not only link back to the referring site, but also can track the time of entering a lead or clicking on a banner, to learn more about the time it takes them to convert to real customers.
Cost Per Click / Cost Per Action: These are methods of measuring the cost of your marketing efforts. Whereas cost per click refers to the amount of money that is invested every time the customer clicks on a particular link, cost per action means the amount of cost for a customer's action, such as making a purchase or entering a lead.
Merchant: The person who's product or brand the affiliate marketers are selling is known as the merchant. The merchant is responsible for paying the affiliates for generating demand for his product. While affiliate marketing may seem more profitable for the merchant, an affiliate marketer can also generate a lot of income by carrying out a successful campaign.
I hope these terms help you. I know when I started out in this industry I didn't know any of these terms. However knowing these words will give you a good basic understanding of how this industry works.
Two terms not mentioned so far are the cost to acquire a customer (CTA) and the average customer lifetime value (ACTV). Just like any business you need to know your cost to acquire a customer. When you know what it takes to acquire your customer and what the average customer lifetime value is, you can budget your time and money accordingly.
Thank you for reading this article on affiliate marketing terms. I hope and trust you found this useful.
I promote an affiliate program with 100% commissions. If you
would like to find out more information how you can start earning today,
go to www.ezonlinemoney.us. Please do not hesitate to ask any questions. I'm here to help.
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