Affiliate Model

Terms – Need to Know

A few terms that are key to know are:

Advertisement Costs

·        CPC/PPC – Cost per click or pay per click.  A good example of this is Google Adwords.  Every time someone clicks on your ad you a cost.  Therefore it is referred to as ‘cost per click.’

·        CPA – Cost per action.  You pay each time a particular action is taken.

·        CPM – Cost per thousand.  You pay this amount every one thousand impressions.

Affiliate Terms

·        Affiliate Link – also known as a ‘Referral URL’.  This is the link that you want others to click on.  The program that you sign up under will track how many times that link is clicked and the number of sales.

·        Charge Back – if a customer returns the product, the credit card company will reverse the charges and you lose a sale.

·        Conversion Rate – this number is usually a percentage showing the number of sales in relation to the number of clicks.

·        Cookies – a piece of code that is placed on a person’s computer when they click on an affiliate link. (NOTE: The cookie does not harm the computer. It simply makes sure you get the credit for the sale.)

·        Tiers – some affiliate programs have two tiers which means that if you recruit other affiliates under you, you get a percentage of their sales as well as your own

·        Tracking – different programs provide different levels of tracking.  Some will just track sales while others will track impressions and clicks.

Wanting you to succeed,

Linda

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