Glossary

Essential terms and definitions for affiliate marketing and payment processing

Affiliate

A person or company that promotes products or services in exchange for a commission on resulting sales or actions.

API

Application Programming Interface - A set of protocols and tools that allows different software applications to communicate with each other.

Attribution

The process of identifying which marketing touchpoint or affiliate should receive credit for a conversion.

Click-Through Rate (CTR)

The percentage of people who click on an affiliate link compared to the total number who view it.

Commission

The payment an affiliate receives for generating a sale, lead, or other desired action.

Conversion

When a visitor completes a desired action, such as making a purchase or signing up for a service.

Related:CPALead

Conversion Rate

The percentage of clicks that result in a completed conversion or sale.

Related:CTRROI

Cookie Duration

The length of time a tracking cookie remains active after a user clicks an affiliate link.

CPA (Cost Per Action)

A payment model where affiliates earn a commission when a specific action is completed.

CPC (Cost Per Click)

A payment model where affiliates are paid for each click on their affiliate links.

CPM (Cost Per Mille)

A payment model where affiliates are paid per thousand impressions of an advertisement.

Related:Impressions

Deep Link

An affiliate link that directs users to a specific page or product, rather than the homepage.

EPC (Earnings Per Click)

The average amount an affiliate earns each time someone clicks on their affiliate link.

Impressions

The number of times an affiliate link or advertisement is displayed to users.

Related:CTRCPM

Integration

The process of connecting different software systems to work together seamlessly.

Related:APIWebhook

Landing Page

The web page where visitors arrive after clicking an affiliate link.

Lead

A potential customer who has shown interest by providing contact information or taking a specific action.

Merchant

A business or company that sells products or services through an affiliate program.

Network

A platform that connects affiliates with merchants and manages tracking, reporting, and payments.

Partner

Another term for an affiliate or business relationship in an affiliate program.

Payment Threshold

The minimum amount of commission an affiliate must earn before receiving a payout.

Payout

The payment made to affiliates for their earned commissions.

Publisher

Another term for an affiliate who promotes products or services.

Recurring Commission

A commission structure where affiliates continue to earn from a customer over time, typically for subscription-based products.

Revenue Share

A commission model where affiliates earn a percentage of the revenue generated from their referrals.

ROI (Return on Investment)

A measure of the profitability of an affiliate marketing campaign.

Sub-Affiliate

An affiliate recruited by another affiliate, often earning the recruiter a secondary commission.

Tracking Link

A unique URL that identifies and tracks traffic and conversions from a specific affiliate.

Two-Tier Program

An affiliate program structure where affiliates earn commissions on their own sales and a percentage of sales from affiliates they refer.

Webhook

An automated message sent from one application to another when a specific event occurs.