Tuesday, 3 December 2013

Affiliate Marketing

As you get into the territory of affiliate marketing, there are a few terms you will hear frequently. You need to understand what these mean because they can make a difference in your income potential.
CPC
Compensation Per Click. You are paid each time someone clicks on the link you advertise for the company.
CPA
Cost Per Action or Acquisition. Revenue is earned each time a specific action is taken. This may be a sale, registration or other type of lead as per the affiliate agreement.
Lead
Revenue is earned each time a lead occurs. This may be a new signup to a newsletter.
PPS
Pay per sale. Revenue is earned each time a sale is made per the affiliate agreement. This may be something unique where you get one amount for any new customers, and existing customers you receive a commission payout.
Commission
Revenue is earned each time a sale occurs. The commission is agreed upon in the advertiser terms.
Creative
These are the banners, widgets or displays that you may use in advertisements. Pay close attention to which creatives are approved for promotion. Also be mindful of how you may promote each creative. Newer stipulations are restricting the use of promotion directly on Facebook.
Cookies (Web)
Cookies are placed on a computer during the visit to an affiliate site. If a visitor clicks and does not make a purchase or finish a lead, you may still have potential to earn from their visit down the road. These web cookies stay tied to that visitor for a period of time. If they come back the next day, and your affiliate agreement has the web cookies expire in 48 hours, you can still earn from that sale or lead.
Check your affiliate terms to determine how long cookies are set for each visit.
Conversion
A conversion is getting the desired action.  If you are running a CPC ad, it’s getting that click. If it’s a commission based ad, it’s getting a reader to make a purchase.
Often times you may hear others say “this offer converts well.” This means, the offer has a high success rate for obtaining leads, commission or clicks.

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