What is Affiliate Marketing
This is a performance based business where owners of products reward sellers of there products.That is the simple layman’s way of defining what Affiliate marketing is.the beauty of Affiliate Marketing business is that you dont only get paid a certain percentage when people buy the products marketed by you but also when people click on the product to find out details about it
In a simple layman terms the affiliates show case the product of business which he is connected with and he gets commissions based on the agreement with the business. In this business model it is affiliates which have a greater role to play in order to get commission. In order to become more conversant with the terminologies in Affiliate marketing I am going to define some terms that are commonly used in Affiliate marketing
1.PPC .This stands for pay per click
In Pay per Click programs you get paid for all valid clicks that you generate regardless of leads/sales.
2.PPL This stands for Pay per Lead.in this programm the Merchant pays you for the completion of a particular action which ranges from submission of emails,short survey, free trial, installation,, sign up, online form submission,a free download etc .
3.CPA This stands for Cost per action this is an online advertising marketing strategy that allows an advertiser to pay for a specified action from a prospective customer. Doing a CPA campaign is relatively low risk for the advertiser, as payment only has to be made when a specific action takes place. CPA offers are most commonly associated with affiliate marketing. Cost per action is also known as cost per acquisition (CPA).CPA is also known as , pay per acquisition (PPA) and cost per conversion (CPC),
4 Pay Per Sale (PPS)– In Pay per Sale programs the advertiser pays you a percentage of all qualified sales. The most popular Pay per Sale affiliate program is Amazon Affiliate. where you can earn up to 15% depending upon the category of products.others include Jumai ,.Clickbank , JVzoo ,Amazon, Share a sale , etc in my subsequent post I will talk about how to sign up for this programmes and the requirements that you first need to have in place before you sign up as an Affiliate for these Merchants.
5.AFFILIATE NETWORKS This are the intermediaries between the affiliate marketers and the merchants.There are a lot of Affiliate Networks in the internet but in my subsequent post I will take a few of them and explain in detail how to sign up in these networks,.
6.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.
7.CONVERSION – an event generated by a user that an advertiser is willing to pay for.
This is usually a target 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 to affiliates.
8. NICHE MARKETING – a type of marketing focused on a specific group of consumers.
A well-defined niche enables marketers to create more personalized campaigns that will yield better results.
9.LANDING PAGE – a website or web page to which affiliates refer traffic.
For example, when users click on banners, they are redirected to a landing page that provides more information about the product advertised on that banner (usually with purchase options). The main purpose of a landing page is to complete an action. It can be a purchase, service sign-up, download, on any similar action that has a certain value for the advertiser.
10.EPC Earnings per click shows you the revenue you get for each 100 clicks. It’s the average amount of cash you can earn per every 100 clicks on your affiliate link. How to calculate the EPC? Take the amount generated in revenue from an affiliate link, divide it by the total number of clicks on that link, and multiply the value by 100
These are the 10 essential affiliate marketing terms to know for now.