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Affiliate Dictionary


2-TIER
a type of affiliate or associate program where you earn commissions off sales from members that you referred to the affiliate or associate program. For example, if you go from this site and join the One & Only associate program and then earn $3000 in commissions, I will make $1000 for referring you to the One & Only associate program.

AFFILIATE
a member of an affiliate program. For example, if you join the Contact Any Celebrity affiliate program then you would be an affiliate of the Contact Any Celebrity affiliate program.

AFFILIATE PROGRAM
a program set up for individuals to advertise products or services on their web sites for which they receive monetary compensation. For example, if you join the Asia FriendFinder affiliate program then you will make $1.00 to $2.00 every time someone goes from your site and signs up for a free Asia FriendFinder membership.

ASSOCIATE
a member of an associate program. For example, if you join the A Pretty Woman associate program then you would be an associate of the A Pretty Woman associate program.

ASSOCIATE PROGRAM
a program set up for individuals to advertise products or services on their web sites for which they receive monetary compensation.

CONVERSION RATE
measures the percentage of visitors to your site that convert to a sale or other action.

COST PER ACTION (CPA)
1. an affiliate program that pays you a commission for every action, generally a sale, that results from your promotions.

2. measures how much it costs to generate an action or marketing objective, such as a click, when advertising.

For example, if you paid for advertising and received 1000 visitors to your site and 100 purchased an item, then your CPA is .

CPA = Total Ad Cost / Total Number of Actions

PAY-PER-CLICK
getting paid for every unique click-through you refer to an affiliate or associate program's web site. For example, if you join the Adult FriendFinder Click-Thru affiliate program then you will make up to 65 cents per unique click.

PAY-PER-LEAD
getting paid for every qualified lead that you refer to an affiliate or associate program's web site. For example, if you join the CarPrices.com affiliate program then you will make $3.50 every time someone goes from your site and requests a free new car price quote.

PAY-PER-SALE
getting paid for every sale that you refer to an affiliate or associate program's web site. For example, if you join the Nothing But 'Net affiliate program then you will make 25% of the book's price each time someone goes from your site and buys the book.

RETURN ON INVESTMENT (ROI)
calculates your amount of profit based on your advertising costs per dollar.

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