Affiliate Marketing will grow more and more, its potential opportunities will increase. If you have a good mindset and try to act, more or less you will achieve results.
And once you have the results, you will know how to scale the system up. However, you are new to the “world” of Affiliate Marketing (also known as “affiliate marketing”) and you do not know where to start learning?
To make your learning journey easier, Ola City will gather to help you with the following top 15 basic Affiliate Marketing terms that you need to grasp when starting to do Affiliate Marketing!
Advertiser is commonly referred to as “advertiser” or “vendor”. This is one of the most basic affiliate marketing terms that you will come across over and over again. They can be individuals or organizations selling products/services. This audience often has the need to promote their products / services to customers thanks to the form of Affiliate Marketing. Advertisers can use the “Affiliate Network” or operate their own “Affiliate Program” system.
Publisher is also known as a “distributor”. Publisher’s mission is to promote products by attracting traffic from free sources. For example, email marketing, website SEO, social networks and paid advertising (paid traffic) such as Facebook Ads, Google Ads, etc. Publishers can post product review articles on Facebook and place Affiliate Links at the end of the article to earn money. attract clicks.
When customers visit the link to the product you promote and buy the product, you will receive a commission. However, for the promotion to have a high conversion rate, the product you promote needs to meet the needs of the person you promote. Therefore, you need to find the “Affiliate Program”/”Affiliate Network” with suitable products.
3. Affiliate Program
Affiliate Program is an affiliate marketing program launched by the provider itself to promote that Advertiser’s products. Advertisers use their own Publisher management system and track the purchasing behavior of customers that Publishers attract. Commissions will be paid to the Publisher when a customer performs the behavior that the Advertiser wants to target. For example: ordering products, filling out registration forms, etc.
4. Affiliate Network
Affiliate Network appears more and more when the heat of Affiliate Marketing increases. Affiliate Network is the affiliate network between Publisher and Advertiser. These networks make it easy for publishers to find products that are relevant to the market they want to promote. This helps Advertisers reach more Publishers and do not need to spend a lot of resources in managing their own Affiliate system.
The revenue of Affiliate Networks comes from the difference between a certain percentage of the revenue per order that the Advertiser receives and the amount of commission (“Commision”) that the Publisher is paid on each successful order. In Vietnam, the reputable Affiliate Networks we can mention are Rentracks, MasOffer, Adflex, Accesstrade, …
Campaign or Offer are campaigns to promote products. You will select the appropriate products from these campaigns to promote and receive a commission on each successful conversion.
You will have to come across this term very often when stepping into Affiliate Marketing. Commission – ie “commission” – is the amount you get divided from the revenue of successfully converted orders. Commission is expressed in units of %. Commission usually depends on two main factors: Advertiser’s Offer and Charge Model.
7. Affiliate Link/Tracking Link
Affiliate Link or Tracking Link is a term that refers to a tracking link created specifically for each Publisher. When the customer clicks on this link (the link can also be placed under the banner or text), the customer will be taken to the advertiser’s product page.
Although the final destination is the same, the Tracking Link contains the ID of the Publisher. Thanks to that, the Advertiser/Affiliate Network can record the user’s traffic and the number of successfully converted orders via the Link.
8. CVR – Conversion Rate
CVR (Conversion Rate) is your conversion rate per 100 customers.
For example: Your product review article Dielac Alpha Gold IQ Milk powder attracted 100 customers to click on the link to the supplier’s product website and 5 of them successfully placed an order. At that time, your CVR = 5/100 = 5%.
9. CTR – Click-through Rate
CTR (Click-through Rate) refers to the percentage of clicks per 100 people reached. Click-through Rate is a number that helps you measure the effectiveness of the content you use to promote a product.
Example: You run an ad on Facebook and your ad reaches 100 people (also known as the amount of “Impression” – the term I will talk about next), of which 10 people click on the call button. call “See more”. Your CTR now = 10/100 = 10%.
Impression is the term for the number of times a link is displayed in a visitor’s browser. Link efficiency or not can be judged by this number.
Traffic is the number of people visiting any website or landing page. You may come across this term when you run Facebook Ads or Google Ads ads. Like Click-through Rate or Impression, Traffic is a number that helps you measure the effectiveness and attractiveness of the content you write for customers.
Cookie is the 12th basic Affiliate Marketing term that I want to mention. Although cookies are not in the top 10, it is still something you should look into because “Cookies” are quite confusing.
Perhaps you are too familiar with pop ups asking you about keeping cookies when visiting certain websites? Cookies are a type of file created by Affiliate Programs or Affiliate Networks with the feature of storing customer browsing information.
Cookies may be kept for 30 to 60 days depending on the Advertiser. After the customer has clicked on your link to the provider’s website, the cookie will be saved. Even if they don’t make a purchase immediately after clicking, if they come back and successfully complete the order within the cookie period, you will still be charged a commission.
13. CPA – Cost Per Action
CPA (Cost Per Action) is the form that advertisers are willing to pay you based on user behavior/actions. Depending on the difficulty of the action, the cost an advertiser accepts can range from low to high. It can be entering the registration email, completing the survey form, installing the application, etc.
14. CPS – Cost Per Sale
CPS (Cost Per Sale) is a form where Advertisers only pay you a commission when you have a successfully converted order.
15. CPO – Cost Per Order
CPO (Cost Per Order) is similar to CPS. However, in the form of CPO, you will be paid flowers as soon as the customer completes the order confirmation without having to wait for the customer to pay for the product.
Above are the top 15 basic Affiliate Marketing terms that you need to know before starting this job. As a newbie when starting with Affiliate Marketing, you will surely have a lot of confusion or confusion with English terms or abbreviations (mostly English). Therefore, please carefully refer to the content that Ola City has shared in the article above! Wish you success!