2. Terms you need to know

  • AM – Affiliate Manager
    An employee of an affiliate network who manages publishers and the relationship of those publishers with advertisers

  • C&D – Cease and Desist
    A notice from the affiliate network or advertiser to a publisher requesting that they discontinue a current advertising method

  • CR – Conversion Rate
    A ratio of sales to leads on your offer to total traffic. The total number of conversions divided by total number of clicks. Total conversions / total clicks. If you made 10 sales and you had 100 clicks, your conversion rate is 10%.

  • Conversion: A conversion occurs when a user performs a desired action determined by the advertiser. For example, a visitor purchasing the product you are selling or entering their contact information (a lead).

  • CPA – Cost-per-Action
    A no risk marketing method for companies selling products. In this setup an advertiser will only pay when a product is sold (or a lead generated).

  • eCPC – Estimated Cost-per-Click
    The true value of a click, calculated by dividing your total revenue in a set timeframe by the number of clicks your ad received in that same time period(ie, John earns $134 a day from his ad and he receives 100 clicks. John’s eCPC is $0.74.

  • CPC – Cost-per-Click
    The average amount you are currently paying for a click. This will vary between keywords and ad groups. The total cost divided by total number of clicks. Formula: Total cost / total clicks.

  • CPL – Cost-per-Lead
    A type of relationship in which the advertiser pays you every time a user submits their information. This model typically implies that a purchase is not being made, so expect your CPA to be lower.

  • CPM – Cost-per-Thousand
    A type of relationship in which the advertiser pays a fixed rate for every thousand views of a particular ad. Some publishers or advertising networks charge on a CPM basis. For example, my ad may be charged $5 CPM, or $5 for every one thousand times my ad is displayed. It also refers to the average cost paid per thousand impressions for a PPC campaign. Formula: (Total cost / total impressions) x 1,000.

  • CTR – Click-Through Rate
    The percentage of people who click through your ad and end up on your landing page. Calculated by dividing total impressions received (amount of times the ad has been shown) in a fixed period of time by the number of clicks the ad has received in the same time period. The number of times an ad is clicked divided by the number of times it’s displayed. Formula: Total clicks / total impressions.

  • Geo-targeting: Targeting a specific geographic region by restricting the ad display to a particular country, state, city, area, etc.

  • EPC: Earnings per click. It doesn’t matter if an offer pays a  thousand dollars per lead or per sale. If the offer you are running doesn’t convert, your earnings are $0.00, and your EPC is $0.00.  A lot of newbies will look only at higher payouts not realizing that the offer may convert worse and end up generating them less profits per click than an offer that is paying less per lead or per sale. The only way to do this is test offers and run offers with a network you can trust, like Banana Ads.
  • FTP – File Transfer Protocol
    The way in which you will be transferring files from your computer to your webhost.

  • Incentivized Offer
    Offering users something in return for completing an affiliate offer.

  • LP – Landing Page
    The destination page where a user arrives after clicking on an advertisement. The page the user is taken to after clicking on the advertisement.

  • NDA – Non-Disclosure Agreement
    A legally binding contract which limits your ability to share certain information. If you outsource any of your work, you will want to make every consultant sign an NDA.

  • Organic
    Anything that relates to traffic received by your site that is not paid for.

  • PPC – Pay-per-Click
    An advertising model in which you pay only when a user clicks on your advertisement and follows through to your page. PPC refers to pay-per-click advertising, also called paid search marketing. When a user performs a search and clicks on a sponsored ad listing, the advertiser is charged by the search engine for the click. Formula: Total revenue / total cost.

  • PPV – Pay-per-View
    An advertising model in which you pay for every time someone sees your ad.

  • QS – Quality Score
    A score on AdWords and Yahoo SEM which effectively determines the quality of your landing page/offer and sets a minimum bid based on relevancy.

  • ROI – Return on Investment
    A percentage calculated by dividing your total ad spending in a set time period by your revenue in that same timeframe (ie, John spends $500 on PPC advertising and makes $750. He has a ROI of 50%).

  • SEO – Search Engine Optimization
    The process of modifying your site to better rank in organic search results.

  • SERP – Search Engine Results Page
    The page users see after searching for a term on a search engine.

  • Vertical – An industry term in which there are multiple affiliate offers (i.e., Mobile, Diet, Dating, Beauty, etc…).
  • ROAS (return on ad spend): The number of times the ad spend is returned.
  • Impression: Each time an ad is displayed, is it called an impression.
  • Pixel tracking: A method for tracking actions in which the advertiser places an image tag representing a 1×1 pixel on the page that is displayed immediately after the action being tracked. Click here for more info.
  • “Running” an Offer/Campaign – Industry slang that refers to driving traffic to an offer via any traffic source
  • Local Lead Gen – refers to generating leads for local small businesses, such as dental offices, etc.  Affiliates typically must contact these businesses directly and setup an
    agreement with them in regards to the payout per lead generated, etc.  For a tutorial on local lead gen, I recommend purchasing a program called Local Lead Plan.
  • Advertising Network: A service where ads are bought centrally through one company and displayed on multiple websites that contract with that company for a share of revenue generated by ads served on their site.
  • Content Network: A group of websites that agree to show ads on their site, served by an ad network, in exchange for a share of the revenue generated by those ads.
  • Contextual Advertising: Advertising that is targeted to a web page based on the page’s content, keywords, or category.  Ads in most content networks are targeted contextually.
  • Ge0-Targeting: Delivery of ads specific to the geographic location of the visitor.
  • GoogleBot: Google uses several user-agents to crawl and index content in the google search engine.
  • Inbound Link: An inbound link is a hyperlink to a particular web page from an outside site, bringing traffic to that web page.  Inbound links are an important element that most search engine algorithms use to measure the popularity of a web page.
  • Meta Tags: Information places in the HTML header of a web page, providing information that is not visible to browsers, but can be used in varying degrees by search engines to index a page.  Common meta tags used in search engine marketing are title, description, and keyword tags.
  • Quality Score: A score assigned by search engines that is calculated by measuring an ads CTR, analyzing the relevance of the landing page, and considering other factors used to determine the quality of a site and reward those of higher quality with a top placement and lower bids.
  • ROI: Also known as Return on Investment.  Its the amount of money an advertiser earns from their ads compared to the amount of money the advertiser spends on their ads.  A 100% ROI would mean a person spent $100 on advertising and brought in $200 in revenue ($100 profit).
  • Spider: A search engine spider is a program that crawls the web, visiting web pages to collect information to add to or update a search engine’s index.  A spider is also known as a crawler or a bot.
  • Title Tag: An HTML meta tag with text describing a certain web page.  The title tag should contain strategic keywords for the page, since many search engines pay special attention to the title tag when indexing pages.  The title tag should also make sense to humans, since it is usually the text link to the page displayed in search engine results.
  • Web 2.0: A term that refers to a supposed second generation of internet based services.  These typically include tools that let people collaborate and share information online, such as social networking sites, wikis, communication tools, etc.
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