Affiliate Marketing Terms I-V
Impression: advertising metric that indicates how many times an advertising link is displayed.
In-house: alternative to using an affiliate solution provider; building affiliate program architecture within a company.
Lifetime Value of a Customer: the amount of sales in dollars that a customer in his lifetime will spend with a particular company.
Manual Approval: affiliate application approval process where all applicants are manually approved for an affiliate program.
Media Metrix: measures traffic counts on all the web sites & digital media properties on the Net. They regularly publish the names of the Top 50 sites in the US, the Global Top 50, and the Media Metrix Top 500 web sites.
Merchant: an online business that markets and sells goods or services. Merchants establish affiliate programs as a cost effective method to get consumers to purchase a product, register for a service, fill out a form, or visit a Web site.
Mini-site: prefabricated HTML page for affiliates that displays new or specialized products with integrated affiliate links.
Pay-Per-Sale: program where an affiliate receives a commission for each sale of a product or service that they refer to a merchant's web site. Pay-per-sale programs usually offer the highest commissions and the lowest conversion ratio.
Pay-Per-Lead: program where an affiliate receives a commission for each sales lead that they generate for a merchant web site. Examples would include completed surveys, contest or sweepstakes entries, downloaded software demos, or free trials. Pay-per-lead generally offers midrange commissions and midrange to high conversion ratios.
Pay-Per-Click: program where an affiliate receives receive a commission for each click (visitor) they refer to a merchant's web site. Pay-per-click programs generally offer some of the lowest commissions (from $0.01 to $0.25 per click), and a very high conversion ratio since visitors need only click on a link to earn the affiliate a commission.
Residual Earnings: programs that pay affiliates not just for the first sale a shopper form their sites makes, but all additional sales made at the merchant's site over the life of the customer.
ROAS: stands for 'Return on Advertising Spending'. This is the amount of revenue generated for every dollar spent on advertising. For instance, a ROAS of $1 means you're generating $1 in sales for every $1 in advertising spend, and a ROAS of $5 means you generate $5 in sales for every $1 in spending.
ROI: stands for 'Return on Investment'. This is what all marketing managers want to see from the money they spend on their marketing and advertising campaigns. The higher the sales, the large the number of shoppers and the greater the profit margin generated by sales – the better the ROI.
Server: a computer, or a software package, that provides a specific kind of service to client software running on other computers. The term can refer to a particular piece of software, such as a WWW server, or to the machine on which the software is running, e.g."Our mail server is down today, that’s why e-mail isn’t getting out." A single server machine could have several different server software packages running on it, thus providing many different servers to clients on the network.
Spam (or Spamming): electronic junk mail or junk newsgroup postings, generally e-mail advertising for some product sent to a mailing list or newsgroup.
Storefront: prefabricated HTML page for affiliates that displays new or specialized products with integrated affiliate links.
Super Affiliates: those small percentage of sites - the top 1% of affiliates, based on performance and earnings - that generate the lions share of the revenue for your program. They are born marketers and are very successful with the affiliate program they promote from their sites
Targeted Marketing: offering the right offer to the right customer at the right time.
Tracking Method: the way that a program tracks referred sales, leads or clicks. The most common are by using a unique web address (URL) for each affiliate, or by embedding an affiliate ID number into the link that is processed by the merchant's software. Some programs also use cookies for tracking.
Text Link: link that is not accompanied by a graphical image.
Two-tier: affiliate marketing model that allows affiliates to sign up additional affiliates below themselves, so that when the second tier affiliates earn a commission, the affiliate above them also receives a commission. Two-tier affiliate marketing is also known as MLM (Multilevel Marketing).
Viral Marketing: the rapid adoption of a product or passing on of an offer to friends and family through word-of-mouth (or word-of-email) networks. Any advertising that propagates itself the way viruses do.
Regards,
Kevin

