Internet Marketing Glossary: A List Of Digital Terms You Need To Know – 2020 Ready (Part 2: Affiliate)

This Internet Marketing Glossary is a comprehensive digital marketing jargon glossary.

Affiliate

 

Affiliate

In internet marketing, an Affiliate is an individual or company who endorses another brand, business, service and/or product

An Affiliate ID is a unique identifying string (alphanumeric) that is associated with an affiliate. Also known as a Referral ID, the affiliate ID is for the purpose of tracking sales, clicks, visitors and refunds.

Affiliate ID

In internet marketing, an Affiliate is an individual or company who endorses another brand, business, service and/or product.

Affiliate receive a commission identified by the endorsement which is generally in the form of cash, credit or reward. The sellers have control over the sales and pays a commission to the affiliate based on sales generated by the affiliate.

In a link, you’ll be able to recognise the affiliate ID based on the parameters in the URL. Examples of this include:

  • aff_id=XXXXXXXX
  • referral_id=XXXXXXXX
  • afid=XXXXXXXX

Online Companies such as Amazon (eCommerce Shopping), Bluehost (Web Host) and Aweber (Email Marketing Service Provider) utilise affiliate marketing to rapidly grow their business with recurring sales created by affiliates, in order to track the hundreds of thousands of affiliates they have enlisted, each affiliate is provided with a unique affiliate ID.

Affiliate Marketing

Affiliate marketing is the name given to the relationship between an affiliate and brand, business, service and/or product. Affiliate marketing involves the seller sharing a percentage of the value of sale generated by the affiliate.

As a popular sales channel, companies such as Amazon, Bluehost, Aweber and Grammarly are examples of businesses that rely on affiliate marketing to grow sales volume.

Commission

A commission is a remuneration or payment agreed upon beforehand that is given to a person after a specific amount or goal has been achieved.

In terms of affiliate marketing, a commission is given to an affiliate (this can either be a single individual or a company) who promotes a seller/advertisers service or product. For instance, a Seller forms a JV with a Partner by giving the Partner his/her product or service and gets uploaded to the Partner’s site.

Examples of a Commission:

  • Large Commission: 50% commission, $150 per sale
  • Let’s say the service you will promote is $50 monthly and $350 annually. For every sale incurred, you will get $25 per month and $175 per year
  • Recurring Commission: $15 per month
  • This means that is someone signs up through your link and gets enrolled for 6 months, you’ll have $90. If they stay for 2 years, you’ll have $360.
  • Rewards for Results: Trip to Paris!
  • Reach 400 sales and get an all-expense paid trip to Paris!

Cookie

On the internet, a cookie is a tiny data that websites store on your computer, laptop, or smartphone so they can recognize you when you re-visit their site.

A good example of this is Amazon. When you filled up your shopping cart the last time you visited, Amazon will remember the items in your cart when you get back such as login information, searches, recommendations, etc. This is especially useful in increasing the conversion rate of eCommerce platforms as a gentle reminder for new buyers to accumulate their ‘wishlist’ as a shopping cart / list at checkout.

In affiliate marketing, an affiliate cookie is the same as the internet cookie, but instead of auto-filling your login details, it transfers data about your affiliate account to a site. This is so that affiliates will receive credit for the sale when they’ve refer a customer to that site in any case they wanted to purchase a product.

However, an affiliate cookie has a duration which means there’s a limited time that your referrals must make use of. Otherwise, it will time out and disappear on his/her computer. Most affiliate cookie durations last between 30-90 days. However, some sites, like Amazon, have a very short duration of about 24 hours.

There are some, however, who practice black hat techniques such as cookie stuffing which is illegal and a big NO-NO. Cookie stuffing, or cookie abuse, is forcing a cookie onto computers of people who never clicked a single affiliate link on the page.

Earnings Per Click (EPC)

EPC, or Earnings Per Click, is part of a performance metric that is used to determine the average earnings created as a result of 100 clicks on an ad or through an affiliate marketing link.

This metric deals with the amount of earnings that is expected to be earned and is usually showed by affiliate marketing networks to aid publishers in analyzing and differentiating the earning potential of various merchants.

The formula to determine an EPC is = Affiliate earnings / Number of clicks from affiliates x 100. EPC is a great performance metric to analyze which offer works better with various payouts. Let’s say an affiliate is making two offers, one with a payout of $50 and another with a $60 payout. At a quick glance, the $60 payout looks better. Having a good grasp of EPC will reveal which method earns best.

The first offer gained 50 leads with a total of 500 clicks. The affiliate then earned $2,500 with an EPC of $5. The second offer gained 40 leads with a total of 500 clicks. The affiliate then earned $2,400 with an EPC of $4.8.

This reveals that the higher payout is not always a better choice. Using the above example, the affiliate earned $0.2 per click more with an extra revenue of $100.

Evergreen

Evergreen content (some people call it epic content), is a niche that people demand year in and year out. In other words, evergreen content is always relevant.

It is not news updates, events-based articles, product launch updates, trending articles, award announcements, or anything that is limited to a certain period like holiday seasons (Halloween, Christmas, New Year, etc.).

Evergreen contains broad niches like health (dietary supplements, skin care, weight loss pills, diet plans, etc.), money (stocks, investments, insurances, bankings, business transactions, etc.), and self-improvement tips (relationship, career, public image, marriage, school grades, etc.), to name a few.

It helps your readers solve a problem like the ones mentioned above. It is something that they naturally search for and share via social media (think of the things you see in your feed like the Myers-Briggs Personality Test articles, 10 Ways to Watch Game of Thrones, How To Find the Right Job for You – literally everything that is relevant in their daily lives).

For us marketers, we call them their “pain points” where we gain a deeper understanding of the reader.

Joint Venture

A Joint Venture, or widely known as JV in the marketing world, is a business arrangement between two or more entities for the specific aim of attaining a particular goal, agreed upon by both parties.

In layman’s terms, it’s better known as a strategic “alliance” that gives both entities a share of the gains, losses, and costs related to it.

For a JV to be formed, only a written arrangement is required. This agreement requires:

  • The particulars of the venture (start/end date, use of intellectual property, submission of periodic reports, etc.)
  • The partition of share in profits, losses, and costs
  • The role of each entity with regards to making decisions, rendering services, etc.
  • A JV is not:
  • A merger because there is no shift of ownership in the deal.
  • A partnership because, strictly speaking, a partnership involves two or more people. A JV involves two or more entities.

Once the legal structures have been set in stone, a JV is now official. This means that there are now certain legal ramifications involved.

  • If all entities are from the U.S., at least one document is required, a Joint Venture Agreement.
  • If one entity is not in the U.S., at least two documents are needed, a New Legal Entity and Joint Venture Agreement.

However, a legal definition of JV vary from country to country and is not all subject to governance, for example – Australia has no legal meaning when it comes to “joint venture/s.”

Product ID

A Product ID is a uniquely identifying string (alphanumeric) that is associated with eCommerce. As a uniquely identifying string, a Product ID (PID for short), is also used in affiliate marketing to help assign and track sales created by affiliates.

Good practice of using Product ID’s include repurposing the original SKU codes on eCommerce products, or alternatively ensuring that they are easy to comprehend.

Tracking Link

A tracking link is a link with specific parameters attached. Tracking links are created for the purposes of analytics and tracking. With a tracking link, you can identify where sales are made, how traffic has been acquired and much more.

Generally, a tracking link will utilise UTM (Urchin Tracking Module) parameters in the URL.

Tracking links can be identified either with a parameter added to the URL or; created using a URL link shortener service such as Bit.ly and Goo.gl. With parameters, marketers can leverage on Google Analytics to track page statistics inclusive of acquisition, user behaviours and source of traffic.

Originally posted 2019-03-14 21:07:40.

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