Affiliate marketing, also referred to as "performance marketing," is a type of advertising in which a company rewards its partners for generating specific levels of engagement from their audience. Brands and agencies provide publishers with affiliate possibilities, and publishers become market representatives for brands by signing up as affiliates. Here are 20 explanations of key phrases commonly used in affiliate marketing.

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The advertiser is the firm that either makes the goods or provides the services that the affiliates promote (in which case they are also known as the Merchant) or is paid by the brand to advertise on its behalf. Brands pay affiliates and networks to drive visitors to their websites in the hopes of generating sales and leads.


An individual or business that advertises another business's goods or services in exchange for a cut of the profits made from any new customers or clientele brought in as a result of their efforts. There are two names for affiliates: affiliate marketers and publishers.

Manager of Affiliates

Manager of a retailer's affiliate program. They bring on new publishers, keep an eye on affiliates, and work to boost revenues for the advertiser as a whole. A merchant's affiliate program is overseen by an affiliate manager, who may be an in-house employee or an outside vendor (OPM; see below) hired by the advertiser.

Affiliate Network

An independent firm that manages affiliate marketing programs for a variety of different companies. Affiliate networks typically employ their own team of affiliates, to whom they supply tracking software in order to compile data on traffic, conversions, and new leads. Assuming their network consists of trustworthy publications with excellent traffic, they provide marketers the chance to reach a wider audience.

Click-through-Rate (CTR)

When a customer clicks on an affiliate link, they are sent directly to the merchant's website. CTR is the ratio of the number of times a link is clicked to the total number of times it is displayed in an online resource's search results. The percentage rate is calculated by taking that figure and multiplying it by 100.

Conversion Rate

The term "conversion" refers to any action taken by a visitor or customer that results in a sale at the predetermined point of sale agreed upon by the advertiser and the affiliate. A click, submitting a credit card number during a purchase, or registering for an email list are all examples of possible actions. Your affiliate link's conversion rate is the ratio of the number of times the link was visited to the number of times a preset conversion occurred. Conversion rates are determined in the same way as CTR: by dividing the total revenue earned by a link by the total number of times that link was displayed, and then multiplying the result by 100.


To remember a user's preferences and actions over several visits, websites often utilize "cookies," which are little text files added to a user's browser. Cookies are used instead of tracking pixels in affiliate marketing. If a visitor visits a merchant's website via an affiliate link, they'll be tracked for a certain amount of time using that user's unique ID. If the user completes a conversion after clicking on the affiliate link, the affiliate will receive credit for the sale based on the cookie's identification of the user's previous activity.

Cost Per Action (CPA)

The term "Cost Per Action" (also known as "Cost Per Acquisition") describes the monetary outlay required to achieve a certain result, such as a closed transaction or new subscriber.

Cost Per Click (CPC)

The term "Cost Per Click" describes how much an online business must pay whenever one of its links is clicked on by a potential customer. This is determined by dividing the total cost of the campaign by the number of clicks it produced.

Cost Per Thousand (CPM)

The CPM measures how much it costs to show an advertising to one thousand people.


A banner ad, text link, or other promotional material the affiliate might use to spread the word about the affiliate program.

Earnings Per Click (EPC)

Each time a visitor clicks on one of your affiliate links, you make a percentage of what they spend. EPC is calculated by dividing the total number of clicks on an affiliate link by the total amount of commissions earned from those clicks. This means that the EPC for a campaign that makes $2,000 through an affiliate link and the link receives 7,000 hits is $.29.

Order of Insertion

Advertisers and affiliates enter into a terms and conditions agreement before beginning to work together, and insertion orders describe campaign details on top of that. Affiliate compliance, reward levels per conversion, permitted traffic sources, and campaign duration are all regulated by IOs.

Outsourced Program Manager (OPM)

To identify affiliates and guarantee the success of a campaign, advertisers often hire third-party account representatives known as Outsourced Program Managers. OPMs offer the same services as affiliate managers, saving advertisers the overhead of hiring full-time employees to handle their affiliate marketing.


Conversion tracking pixels are snippets of HTML code placed on a confirmation page. Java script, an embedded frame, an image, and a postback are the four most used pixel formats (or server2server). Each of these pixels is made to report back to an advertiser or network when a conversion has occurred, at which point a commission will be due.

Tracking Link

Each affiliate or network that works with an advertiser receives a tracking link from the advertiser that includes a special code for that account. By clicking on this link, marketers and networks will be able to see how many customers a given affiliate has successfully persuaded to make a purchase.

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Unique Click

Instead of simply viewing the overall number of clicks (raw clicks), unique clicks allow you to know how many distinct users have clicked on an affiliate link. If a user clicks on an affiliate link three times in a row, only the third click will generate revenue. If the same visitor revisited the site more than 24 hours later and clicked the affiliate link again, the system would record two unique clicks and four raw clicks from that user.

White Label

With white labeling, an affiliate is given permission to sell a merchant's goods under their own brand name without attribution to the original retailer. Many times, the affiliate promoting the deal will not even be mentioned in the ads, as they are tailored just for the affiliate. By making customers feel that they can only get the product or service from the publisher, this can boost conversions. White labeling is usually reserved for the most successful and reliable affiliates of an advertising or retailer.SEO experts in Mumbai.