Affiliate Marketing is the process of selling other people’s products, for a certain amount of commission. It can also be seen as a business model for delivering goods and services.
Terms in affiliate marketing.
Affiliate: An affiliate is an individual or a company that sells a product or service for a commission.
Affiliate marketing – a type of marketing that is based on performance.
In affiliate marketing, affiliates are paid for successfully promoting a product or a service.
For example, a person running a food blog can be an affiliate of an health company that wishes to advertise their products on that blog.
Advertiser: A person or organization that owns a business and offers services or products to customers.
Advertisers are willing to pay affiliates for each new client or lead they bring.
Affiliate Program: a model in which the advertiser pays commissions to affiliates.
The commission model is usually based on actions performed by users. It usually involves lead generation, subscription to a service, cost per action, pay per sale, cost per mile, etc.
Offers: are the products or services promoted and details of the products/services created by advertisers with the details given to the affiliate managers and they usually contain all relevant information about the payout model and marketing prices.
Affiliate Network – acts as an intermediary between affiliates and advertisers.
Affiliate networks allow affiliates to easily find and participate in affiliate programs which are suitable for their various niches.
OFFER URL – the final URL where the visitor will land after clicking the promotion link or banner.
CONVERSION – an event generated by a user that an advertiser wants to pay for.
This is usually a targeted action of the end user, defined by the advertiser. It can be a subscription to a service, lead generation, sale of a product, installation of a mobile application. Conversion is the final goal of advertising for which advertisers pay affiliates.
TRACKING LINK: also called click tracking link or affiliate link, it is a unique URL to which a certain affiliate sends clicks for a particular offer. This is the advertised link, e.g. link behind the banner. When users click the banner, they go to that specific URL.
AFFILIATE MANAGER – a person who communicates with affiliates.
Affiliate managers take care of maximizing performance of the affiliate program.
COST PER ACTION (CPA): A payment model according to which advertisers pay their affiliates for conversions only.
COST PER CLICK (CPC) : A payment model according to which advertisers pay their affiliates for each click their online ads receive.
LEAD: a contact that has the potentials to become a customer.
SEARCH ENGINE OPTIMIZATION (SEO): the process of getting a better ranking on the result of search pages like Google search, Yandex, Yahoo, Baidu, Bing e.t.c. The purpose is to achieve higher visibility and attract more traffic (web visits) to a website, resulting in more sales or leads.
CREATIVE – advertisement, ad, or banner.
There are many types of banner ads. Choosing the right type depends on the advertising channel, target audience and ad copy.
CLICK-THROUGH RATE (CTR): the percentage of clicks for the number of advertising impressions displayed to visitors or bought from other networks.
NICHE: An affiliate niche is simply a product or service that you can offer based on your field of business.
Affiliate Marketing Niches:
- Gadgets & Technology.
- Beauty & Skincare.
- Health & Wellness.
- Engineering e.t.c.
Disclaimer: All niches listed are not arranged in an order of profitability all niches are good to work with, it all depends on your abilities and area of interest.