Affiliate Marketing Basics

May 19th, 2009Comments Off on Affiliate Marketing Basics

With the economy changing every day, more people are turning to affiliate marketing.  Below are some basic terms to help those interested in affiliate marketing better understand the industry.

Affiliate – the publisher in an affiliate marketing relationship.

Affiliate Directory – a listing of affiliate programs.

Affiliate Fraud – fraudulent activity generated by an affiliate in an attempt to generate illegitimate, unearned revenue.

Affiliate Marketing – revenue sharing between online advertisers and online publishers. Compensation is based on performance measures, typically in the form of sales, clicks, registrations, or a hybrid model.

Affiliate Network – a value-added intermediary providing services, including aggregation, for affiliate merchants and affiliates.

Exclusivity – contract term in which one party grants another party sole rights with regard to a particular business function.

Payment Threshold – the minimum accumulated commission an affiliate must earn to trigger payment from an affiliate program.

Cookie Duration – the number of days an affiliate can earn commission on a conversion.

Super Affiliate – an affiliate capable of generating a significant percentage of an affiliate program’s activity.

Two-Tier Affiliate Program – affiliate program structure whereby affiliates earn commissions on their conversions as well as conversions of affiliates they refer to the program.

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