Module 1 ยท Lesson 2
Mandatory glossary: โโCPA, CPL, RevShare, cookies and more
Before diving deep, you must know the language. Affiliate marketing is full of acronyms and terms in English that are repeated in every conversation, in every report, and on every platform. Here are the terms you must master:
Payment models
| term | full name | explanation |
|---|---|---|
| CPA | Cost Per Action | Payment for an action - usually a purchase in an online store. You receive a fixed amount or a percentage of the sale. |
| Cpl | Cost Per Lead | Payment for a lead (leave details) - common in service businesses: insurance, real estate, education. You receive a fixed amount for each approved lead. |
| CPC | Cost Per Click | Payment for each click on the link. Less common in affiliate marketing, more in sponsored advertising. |
| RevShare | Revenue Share | Revenue sharing - you receive a percentage of the revenue the customer generates over time (common in SaaS software and subscription services). |
| CPI | Cost Per Install | Payment for installing an app. Common in mobile app campaigns. |
Technical terms
| term | explanation |
|---|---|
| Cookie | A small file saved in the surfer's browser when he clicks on your link. The cookie "remembers" that you referred him - even if he purchases a day, a week or a month later. The lifetime of the cookie (Cookie Duration) varies between campaigns: from 24 hours (Amazon) to 90 days. |
| Pixel / Pixel | A small tracking code that is installed on the publisher's website. It "fires" when a conversion occurs and reports to the partner system that the sale came through you. |
| Tracking Link | Your unique tracking link. Every click on it is registered and attributed to you. It is the marketer's most basic tool. |
| Deep Link | A tracking link that points to a specific page (for example, a certain product page) and not just to the store's home page. |
| UTM parameters | Tags that are added to the link to identify where the traffic came from (from which post, channel, campaign). Helping you understand what works. |
| Postback / S2S | A server-to-server tracking method that does not depend on cookies. More accurate and common in advanced networks. |
Performance Indicators (KPIs)
| term | full name | explanation |
|---|---|---|
| CTR | Click-Through Rate | Click-through rate - how many people clicked on the link out of everyone who saw it. A CTR of 2%-5% is considered reasonable. |
| CR | Conversion Rate | The conversion percentage - how many of the clickers on the link actually made a purchase/registration. A CR of 1%-3% is a good average. |
| EPC | Earnings Per Click | Average profit per click. The most important metric for marketers - it tells you how much each click you generate is worth. EPC = total commissions รท total clicks. |
| AOV | Average Order Value | Average order value. The higher the AOV, the higher your commission (if the commission is percentage-based). |
| ROI | Return On Investment | Return on investment. Especially relevant when working with sponsored traffic. ROI = (Profit - Cost) รท Cost ร 100%. |
Additional terms you should know
- Landing page - A targeted landing page designed to make the surfer perform one action (buy, leave details).
- Lead Magnet - A free offer (guide, discount, webinar) that gets people to leave their contact information.
- Funnel / marketing funnel - The route the surfer takes from the first exposure to the purchase.
- Sub-Affiliate - A partner who joined the network through you. In some networks (like Affiracle) you also receive a commission for its performance.
- Chargeback - Canceling a commission that has already been registered, due to returning a product or canceling an order.
- Hold Period - Waiting period between the registration of the commission and its release for withdrawal (usually 30-60 days).
๐ช Tip for beginners
Do not try to memorize all the terms at once. Save this page as a "pocket dictionary" and come back to it every time you come across an unfamiliar term. Within two weeks of practical work, most of the concepts will come naturally.