Top 10 Common Affiliate Marketing Terms

Aug 16, 2016 | Affiliate Marketing

Terminology is half the battle. It's important to understand the affiliate marketing lingo and key terms before diving in.

Affiliate Marketing Terms

Terminology is half the battle. It's important to understand the affiliate marketing lingo and key terms before diving in. Here is a list of the 10 most common terms to help you get started.

1. Advertiser

An advertiser is a company or organization that has a product to sell. This could be a department store with a large inventory of products to choose from. An advertiser could also be a company with a niche product that is trying to grow sales.

The advertiser is responsible for paying a commission for the sale of their products.

2. Affiliate Link

A link will be provided by the advertiser which includes a unique tracking code specific to that advertiser. This tracking code allows the publisher to obtain credit for sales on the advertiser’s website. These tracking code links will be generated within your affiliate network.

3. Affiliate Network

An affiliate network is a third party that connects the publisher and advertiser together. By utilizing an affiliate network, multiple publishers are available in one place. In addition you can manage all promotions, commission rates and much more in one location.

4. Commission

Each advertiser will pay money to an affiliate publisher for purchases. The commission amount is determined by the advertiser and they can change this amount at any time.

5. Consumer

A consumer is the person buying a product. These individuals may already know about your products and are looking for a discount. Or they could be prospective individuals interested in your products but not familiar with your company.

6. Merchant

A merchant is the same as an advertiser. They have product to sell and will pay a commission to an advertiser for that sale.

7. Merchant Page

A merchant page is the advertiser’s page. This page will include the company name, logo and the latest promotions. Not all publishers will offer a merchant page but when they do it’s a great way to promote your company and deals.

8. Placement

A placement is additional exposure on a publisher’s website. This could be a feature on the homepage, newsletter, social media or elsewhere. A placement often comes with an added expense but hopefully will result in more sales.

9. Promotions

A promotion is a deal or offer that an advertiser provides to a publisher.

This promotion could be a %/$ off, free shipping or free product with a purchase. The most popular promotion is a %/$ off the entire website.

10. Publisher

A publisher is a company selling multiple products and brands. Some publishers may focus on a specific industry such as electronics, travel or high fashion. While other publishers are virtual malls which means they offer a wide variety of products or services.

There are thousands of publishers online so make sure to partner with the one that targets your ideal customer.

If you have additional questions on Affiliate Marketing, contact Informatics today.

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