48 Affiliate Marketing Terms Plus Bonuses

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43 Affiliate Marketing Terms: Your Ultimate Affiliate Marketing Glossary

Learning affiliate marketing means understanding a lot of new terms. This detailed affiliate marketing glossary clears up the jargon so beginners can feel confident as they start out. We want you to have every definition and concept at your fingertips to build trust, improve your skills, and avoid confusion.

Introduction

Entering affiliate marketing, like any online business, often feels like learning a new language. The more we understand the words and phrases of this field, the better decisions we make, and the faster we see results. This guide covers 43 must-know affiliate marketing terms, grouped by topic, with simple explanations and real-world context. Bookmark these definitions as your personal glossary for digital marketing. After reading, you'll feel more comfortable using industry terms and strategies.

1. Affiliate Marketing

Affiliate marketing is a performance-based system where we promote another business’s products or services and earn a commission for each sale, lead, or action generated through our unique link. The better we market, the more money we make.

2. Affiliate

An affiliate is anyone (like us) who promotes a merchant’s products in exchange for a commission. Affiliates can be individuals or companies and work in almost any niche.

3. Merchant (Advertiser)

The merchant, sometimes called the advertiser, is the creator or seller of the product. Merchants partner with affiliates to reach more buyers.

4. Affiliate Network

An affiliate network acts as the middleman connecting merchants and affiliates. These platforms host affiliate programs, track sales, and handle payments. Networks like CJ Affiliate and ShareASale are popular examples.

5. Affiliate Program

An affiliate program is a partnership offer from a merchant. It includes rules, commission rates, and promotion terms. Joining a program is how we start earning as affiliates.

Photo by Tobias Dziuba

6. Publisher

Publisher is another name for affiliate. Some networks use “publisher” instead of “affiliate” to refer to people promoting offers.

7. Advertiser

In affiliate marketing, the advertiser is the product owner or business paying commissions. This can be a big company, a small brand, or a solo entrepreneur.

8. Conversion

A conversion is when a visitor completes the desired action, like making a purchase or filling out a form. Our commissions depend on conversions.

9. Commission

The payment we receive for each conversion is called a commission. It can be a fixed dollar amount or a percentage of the sale.

10. Referral Link

A referral link contains our unique affiliate ID. When someone clicks it and converts, we get credit for that action.

11. Cookie

Cookies are small files in a user’s browser that help track actions after someone clicks our affiliate link.

• Cookie Duration: This is the period a cookie tracks conversions for us. If someone buys within 30 days of clicking, and the program has a 30-day cookie duration, we earn the commission.

12. Click-Through Rate (CTR)

CTR is the percentage of people who click our link after seeing it. If 100 people see an ad and 5 click it, the CTR is 5%.

13. Pay-Per-Click (PPC)

PPC means we earn money each time someone clicks our affiliate link, no matter what happens next.

14. Pay-Per-Sale (PPS)

PPS means we only earn commissions when a click leads to a sale.

15. Pay-Per-Lead (PPL)

PPL means getting paid when someone turns into a qualified lead, such as by signing up or filling a form.

16. Earnings Per Click (EPC)

EPC is how much we earn per click on average. If we make $20 from 100 clicks, the EPC is $0.20.

Common Payment Models:

• PPC: Paid for clicks
• PPL: Paid for leads
• PPS: Paid for sales

17. Tracking Software

Tracking software collects data on clicks, conversions, and commissions. Most affiliate networks provide integrated tracking for accuracy.

18. Sub ID (Sub Identifier)

Sub IDs help us track performance by campaign, traffic source, or placement. Adding Sub IDs lets us see which links or content perform best.

19. Conversion Rate

Conversion rate is the number of conversions divided by the number of total visitors. Higher rates mean more effective marketing.

20. Pixel Tracking

A tracking pixel is a tiny image code placed on web pages to track conversions. It sends data to affiliate networks or merchants when someone completes an action.

21. Unique Clicks

Unique clicks count the number of different people who click our link, not counting repeat clicks from the same user.

22. Impressions

Impressions mean the number of times our ad or link is shown, regardless of clicks.

23. Revenue Share

Revenue share means we earn a percentage of the sale amount, not a fixed fee.

24. Attribution Model

Attribution models decide how credit for a conversion is assigned.

• First-click: The first affiliate to refer wins the commission.
• Last-click: The last affiliate (most common) who refers before the conversion gets paid.
• Multi-touch: Splits the commission between several affiliates.

25. Fraud Detection

Fraud detection tools help networks and merchants spot fake clicks, leads, or sales to prevent unfair payouts.

26. Link Cloaking

Link cloaking masks our long, complex affiliate URL, making it look cleaner and sometimes improving trust.

27. Content Marketing

Content marketing is using blog posts, videos, and other content to attract potential buyers to our affiliate links.

For a deeper dive into affiliate content creation, check out these Affiliate Marketing Tips for Beginners.

28. SEO (Search Engine Optimization)

SEO is the practice of optimizing our content so it ranks higher in search engine results, increasing organic traffic.

29. PPC Advertising

PPC advertising is paying for ads that charge us per click often used to drive faster results to our affiliate offers.

30. Email Marketing

Email marketing sends targeted emails to subscribers to promote products, drive traffic, and earn commissions.

31. Landing Page

A landing page is a dedicated page designed to convert visitors into leads or buyers, usually focused on one offer.

32. Call-to-Action (CTA)

A CTA tells visitors what to do next, such as “Buy Now”, “Sign Up”, or “Learn More”.

33. Lead Generation

Lead generation is attracting people who may become customers, often by offering something in exchange for their info.

34. Influencer Marketing

Influencer marketing uses social media personalities to promote products via affiliate links.

35. Banner Ads

Banner ads are clickable image ads placed on websites to encourage visitors to click affiliate links.

36. Native Advertising

Native advertising blends paid promotion into regular content, making it look less like an ad and more like helpful info.

Common Affiliate Marketing Channels:

• Content websites and blogs
• Social media platforms
• Email newsletters
• YouTube videos
• Online courses
• Forums and communities

37. Two-Tier Affiliate Program

A two-tier program pays us for direct conversions, plus a percentage of sales made by affiliates we refer to the program.

38. Multi-Level Marketing (MLM)

MLM means earning through product sales and from the team of affiliates we recruit. Not all affiliate programs use MLM.

39. Recurring Commission

Recurring commission pays us repeatedly (often monthly or yearly) as long as the referred customer keeps paying the merchant, common with subscription services.

40. Lifetime Commission

Lifetime commission grants us a share of every purchase a customer makes, not just the first sale.

41. CPA (Cost Per Action)

CPA pays us when a visitor completes a specific action, like signing up or downloading an app.

42. CPL (Cost Per Lead)

CPL programs pay per qualified lead, perfect for campaigns where getting contact info is the main goal.

43. CPS (Cost Per Sale)

CPS means getting paid whenever a click from our link results in a completed sale.

44. Flat Rate Commission

Flat rate means a set payout for each conversion, no matter the purchase size.

45. Performance-Based Marketing

Performance-based marketing focuses on paying for real results—leads, sales, or actions—rather than impressions or clicks alone.

For a deep glossary of affiliate marketing terms, compare our guide to the Ultimate Affiliate Marketing Glossary by Rewardful.

Legal and Compliance Terms

46. FTC Disclosure

The Federal Trade Commission (FTC) requires us to disclose affiliate relationships, ensuring transparency for readers. Proper disclosures build trust and keep us compliant.

47. GDPR (General Data Protection Regulation)

GDPR is a European law that regulates data privacy and protects users in the EU. We should learn the basics if marketing to Europe.

48. Terms of Service ## Terms of Service (TOS)

Terms of service are the official rules and agreements provided by merchants, affiliate networks, or platforms. Following TOS keeps us safe from account bans and helps us know the boundaries for promotions.

BONUS TERMS BELOW

Affiliate Agreement

This is a legal contract between us and the merchant or network. It outlines our rights, responsibilities, and commission structure. Reading the affiliate agreement avoids misunderstandings.

Payment Threshold

A payment threshold sets the minimum amount we must earn before getting paid. For example, if the threshold is $50, we won’t receive a payout until we reach that amount.

Chargeback

Chargebacks happen when a customer reverses a payment after a purchase. These can reduce our commissions, so spotting patterns is important.

Fraudulent Activity

Fraudulent activity means using dishonest methods like fake clicks or leads to trigger commissions. Networks track this closely, and most ban anyone caught cheating.

Payment and Financial Terms

Payment Methods

Affiliate programs pay us through various methods such as PayPal, wire transfer, direct deposit, or checks. Choosing the right one affects how quickly and easily we get our money.

Payment Frequency

Payment frequency is how often we get paid monthly, bi-weekly, or even weekly. We’ll need to check program details, as some pay faster than others.

Minimum Payout

The minimum payout is the lowest amount we need to earn before payment is released, often tied to payment thresholds.

Hold Period

The hold period is the time a network waits before paying, used to process refunds or chargebacks. For example, a 30-day hold means faster access to real earnings.

Negative Balance

A negative balance can happen after chargebacks or reversals, putting our account below zero. This must be made up before earning more.

Reversal

A reversal is when a sale, lead, or action counted as a conversion is later marked invalid, resulting in lost commissions.

EPC (Earnings Per Click)

EPC measures how much, on average, we earn per click, handy for comparing program profitability.

Advanced Affiliate Marketing Terms

A/B Testing

A/B testing means comparing different versions of content, ads, or landing pages to see which one performs better. This helps us keep improving our results.

Lifetime Value (LTV)

LTV is the total revenue a single customer brings during their lifetime as a paying user. Programs with higher LTVs often pay more in commissions.

Native Integration

Native integration lets affiliate links or widgets blend seamlessly into a product or platform, making promotions feel natural.

API (Application Programming Interface)

APIs help platforms share data, like real-time stats or conversions, directly with affiliate dashboards or websites.

SaaS Affiliate Programs

Promoting Software-as-a-Service (SaaS) products often pays recurring or lifetime commissions and requires understanding unique buyer journeys.

White Label Affiliate Program

White label programs let us rebrand and resell a product or service as our own, earning an affiliate commission or margin on every sale.

Affiliate Manager Role

The affiliate manager helps partners succeed, answers questions, and keeps relationships healthy. A good manager helps grow our revenue.

Funnel Marketing

Funnel marketing is guiding prospects step-by-step from awareness to action to improve conversions and commission rates.

Terms Related to Affiliate Communities and Support

Affiliate Forum

Affiliate forums are online communities where affiliates share tips, troubleshoot problems, and swap insights. They’re perfect for learning new strategies.

Affiliate Summit

Affiliate Summit is a popular industry event for affiliates and networks to learn, network, and discover new offers. There are dozens of affiliate conferences held yearly.

Affiliate Support

Affiliate support teams answer program questions, solve payment issues, and help troubleshoot. They’re essential for smooth business.

Affiliate Training

Affiliate training includes courses, webinars, guides, and coaching from experienced marketers. Training helps us master the basics and move to advanced methods.

Miscellaneous Affiliate Marketing Terms

Geo-Targeting

Geo-targeting means showing offers to users in specific locations, improving relevance and conversions for region-specific campaigns.

Link Rotator

A link rotator cycles through multiple affiliate links each time someone clicks, helping us split-test offers and optimize performance.

Incentivized Traffic

Incentivized traffic is when visitors are offered bonuses (like rewards or points) to click affiliate links. Most programs restrict this traffic because it can lower lead quality.

Two-Step Opt-in

This method requires users to take two actions (for example, clicking a button and then entering their email) to confirm interest and boost lead quality.

Click Fraud

Click fraud involves generating fake clicks to inflate stats. Networks continually work to detect and stop this practice.

Wrapping Up This Gift

Affiliate marketing comes with its own language. Knowing these 43+ key affiliate marketing glossary terms helps us stay clear, communicate better with merchants and networks, and avoid rookie mistakes. When we speak the industry’s language, we build trust, make smarter choices, and grow our commissions faster.

For those wanting more, compare this glossary with the Ultimate Affiliate Marketing Glossary by ClickBank or the Target Circle Affiliate Marketing Dictionary. Learn what works, stay active in forums, and keep this glossary handy for reference.

Affiliate marketing success starts with understanding the basics. Master these terms, and we’re already a step ahead.

Additional Resources

• See the Ultimate Affiliate Marketing Glossary for another detailed list.
• Discover more affiliate program strategies in our own Affiliate Marketing Tips for Beginners.
• For personal insights, don’t miss Lessons from a Campground Meltdown on Affiliate Marketing.

Feel free to revisit this glossary as you grow. We’re confident you’ll see more success and clarity by using these definitions daily.