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Affiliate Glossary

Date Added: June 05, 2011 08:22:25 PM
Author: Mick
Category: PPC Programs
 

CPA -- This stands for Cost or Commission Per Action, or Cost Per Acquisition. Generally means that you get a commission whenever a visitor does something: fills out a form, provides an email address, answers a question, or clicks  when directed to -- all of which indicate the visitor is interested in the product or subject. Interested visitors are high-quality traffic, so the advertiser wants to give money when you send him such traffic. They are potential buyers.

 

CPS --  This stands for Cost  or Commission Per Sale. In such a payment arrangement, the advertiser pays you only for completed sales. Usually they pay you a percentage of the dollar amount they sold to your visitors, or a percentage of the net revenue you generated. Sales coming from your website are traced to you by a unique referral code within the link on your page. 

 

CTR --  Click-through rate. This is obtained by dividing the number of people clicking on an ad by the number of times the ad was shown. For example, if an ad is seen 100 times and 5 people click  on it, it has a CTR of 5 ÷ 100, or 5%.

 

PPL -- Pay Per Lead. This means an advertiser will pay a certain amount for each "captured" viewer; the affiliate agreement should specify whether this simply means the person went to the site,  or if it means a visitor who performs a specified action, such as downloading a free software trial, or providing their name and address, email, phone number, etc., so that the advertiser may contact them with further sales pitches. Sometimes a lead may be defined as an actual sale.

 

RPM --  This stands for Revenue Per Mille (revenue per thousand impressions. "mille" does not mean million.) Publishers calculate a website's RPM in order to evaluate the earning potential of the ads currently on it. You'd calculate it by taking the daily revenue and multiplying it by the page views for one day, (or monthly revenue and multiplying it by the page views in one month), and dividing it by 1,000.  

 

Residual Income -- This is an advantageous payment plan offered by some affiliate programs. It means they installed a cookie on a customer's computer so they can track when that customer returns and buys again, and they'll give you a commission on every sale that is made to the customer who originally came from your site.

 

RevShare -- be careful when you read this term in the payment description of an affiliate program, because it is used to mean different things. For the most desirable programs, "Revenue Share" is what it's called, and sometimes shortened to "RevShare" and it means you are signing up for a straight percentage of the net revenue a company earns, OR a straight percentage of the gross revenue a company takes in from that visitor. It is usually coupled with "for the lifetime of the customer," meaning that anytime this customer returns to the site (on his computer which has their trackable cookie, so they know who it is) and makes further purchases, you get the percentage from those sales too. This is also called Residual Income, (which see).

 

Other companies call it "RevShare" but do not mean the above arrangement; they simply are indicating that they are splitting their earnings from a particular customer (who has clicked somewhere on your site), or advertiser (whose ad appears on your site),  with you in some way. 

We have seen companies call CPA and PPC income "revshare." 

 

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