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Affiliate Marketing Fundamentals
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Affiliate
A person or company that promotes products or services for a business in exchange for commission on resulting sales.
Conversion Rate
The percentage of visitors who take a desired action, crucial for determining the success of affiliate marketing efforts.
Landing Page
A standalone web page created specifically for marketing or advertising campaigns, where visitors 'land' after they click through from an affiliate link.
Pay Per Click (PPC)
An online advertising model in which advertisers pay a fee each time one of their ads is clicked, indirectly related to affiliate marketing.
Two-tier Affiliate Marketing
A structure where affiliates earn commissions on their sales as well as sales generated by other affiliates they have recruited.
Cookies
Small data files used to track the referral source of a sale or lead, playing a key role in affiliate attribution.
Affiliate Marketing
A performance-based marketing strategy where a business rewards affiliates for each customer brought by the affiliate's own marketing efforts.
Affiliate Link
A unique URL provided to affiliates, used to track the traffic sent to the merchant's website and attribute sales.
Earnings Per Click (EPC)
A metric that calculates the average earnings generated by an affiliate for every click to the merchant's site.
Affiliate Network
A platform that connects merchants with affiliates, providing tracking technology and often handling payment and reporting.
Commission
The earned amount paid to an affiliate based on a predefined rate or percentage for sales or leads generated.
Cost Per Action (CPA)
A pricing model where the advertiser pays for a specific action, such as a sale or a form submission, often used in affiliate marketing.
Cookie Duration
The time frame in which a cookie will track a user's actions and attribute sales to the affiliate, typically ranging from 24 hours to 90 days.
Return on Investment (ROI)
A measure of the profitability of an affiliate marketing campaign, calculated by dividing the net profit by the total cost of investment.
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