15 Terms You Must Know When Doing Affiliate Marketing

  1. Affiliate Network (Affiliate Marketing Network):
    Also known as affiliate marketplace, these are companies that act as a bridge between publishers (we - who promote products) and advertisers (who own products and have advertising needs). There will be many products with different categories for you to choose from when participating in an Affiliate network.

There are many affiliate networks like ClickBank, CJ.com, ShareAsale

  1. Affiliate Program (Affiliate marketing program):
    This is an affiliate marketing program run by the companies themselves

For example, Amazon has an Affiliate Marketing program managed by themselves

  1. Affiliate link (Product link/Deep link):
    A unique affiliate link for each publisher, to track the number of clicks on the affiliate link & statistics on the number of orders sold.
  • Affiliate ID:
    Similar to an affiliate link, but the difference is that you will have a unique ID (usually a sequence of numbers or characters). With this ID you can create any affiliate link just by attaching this ID code to the end of the product link
  • Commission (Commission):
    Publisher will receive a commission when a customer takes an action through the Publisher’s affiliate link. This commission will be different for different programs, can be percentage or specific amount.
  • Payment method:
    Is the payment method that the Advertiser or Affiliate network will use to pay you.

You will only need a bank account if doing Affiliate Marketing in the country. And if you do Affiliate for overseas networks, you will usually use 2 types of payment Payoneer or Paypal.

Example: Get commission from Clickbank or Commission Junction (CJ) from Payoneer

  1. Coupon:
    This is a discount code, many affiliate programs often offer discount codes for a certain period of time to increase sales.
  • Landing page:
    Called landing page, can also be called lead page, sale page, money page. This is a product introduction page, the landing page can be separate with its own domain name or it can also be located in a website or blog.

The publisher’s job is to generate a lot of traffic (traffic) to the landing page to call for potential customers to take action (CTA - Call to action). It could be the act of making a purchase, or the act of signing up for an email.

  1. Link Cloaking:
    Affiliate links look very ugly and unfriendly. Link cloaking was born as a way to shorten and beautify the link, making users feel confident to increase the click rate.

However, not all programs allow you to shorten or “beautify” links. Amazon’s Affiliate Marketing program is an example, you will have to keep the affiliate link so that Amazon can check and measure your customers from which page to come.

  1. Cookies:
    Is a file that is automatically generated to save browsing information every time a customer clicks on an affiliate link. How long cookies are stored will depend on the policies of each affiliate program.

For example, if the cookie retention policy is 45 days, today customers click on the affiliate link but they do not buy right away. However, during the next 45 days, if they use the same computer and browser to make a purchase, the commission will still be charged to you.

  1. Conversion Rate (CR):
    That is, the conversion rate is in %. For example, there are 100 customers who click on your affiliate link and there are 20 people who complete an action such as making a purchase, now your conversion rate is 20%. The higher the conversion rate, the greater the effectiveness of your product promotion and vice versa
  • Search Engine Optimization (SEO):
    Method or algorithm for increasing the quantity and quality of traffic to your Web site by ensuring that online content shows up in search engines such as Google, Bing, etc.
  • SEM (Search Engine Marketing) or Paid Search:
    Is the process of gaining website traffic by buying ads on search engines.

Examples are Google AdWords, Bing Ads, and Yahoo ads (Search Ads).

  1. Free traffic:
    Is how you bring traffic to your website naturally without paying fees through building quality content, SEO right method. Free traffic requires a lot of time and effort to build, but is sustainable and brings a long-term, passive income source for website owners.

Examples of popular ways to deploy Free traffic are:

Selling on Facebook fanpage, personal Facebook, Group good Instagram
Website building and SEO to the top of Google
Build a Youtube channel…

  1. Email Marketing:
    Is a way to approach customers for the purpose of introducing, marketing, selling a product or service through the medium of email. This is a very effective and economical form of product promotion, if applied in the right way and with the right product type.

  2. Advertiser:
    People who have advertising needs, or people who have products and services and are willing to spend money on advertising to sell products

  3. Publisher:
    Individuals or companies that participate in product promotion and receive commissions from Advertiser

  4. Affiliate network (Affiliate network):
    The bridge between those who have advertising needs (Advertiser) and us - the people who promote the product (Publisher).

  5. Adnetwork:
    An ad network is a technology platform that mediates the sales of ad inventory between publishers and advertisers. It is a term used exclusively for digital media and online ads. Ad networks are responsible for helping advertisers buy ad space from online publishers, and they aggregate ad inventory from sources on the supply-side of an ad exchange and match them with sources on the demand-side looking for ad slots.
    Ad networks are generally well-received by both advertisers and publishers, as they provide a convenient way to buy and sell ad space. Ad networks have been around since the mid ‘90s when online advertising first began, and they have since become an integral part of the digital advertising landscape.
    Overall, ad networks are a great way for businesses to buy ad space third-party websites, and they provide a convenient way for publishers to monetize their websites.
    For example: TaroAds

Above are 15 terms that you will surely encounter when making money with Affiliate Marketing. Are there any other terms you use often that I forgot to mention?