Online Marketing Glossary: Compensation Rate
Compensation Rate:
- The rate at which an affiliate receives money in exchange for goods or services. It is how affiliates are paid and should be stated in the affiliate contract.
 
Personally I’ve rarely heard this term actually used, but it basically just means how often are you paying the affiliates.  Most programs and networks pay on a monthly basis, although many super affiliates who are bringing in a large revenue stream prefer to be paid every 2 weeks or every week as a normal job would pay.  Considering this is their full time job for the most part, I don’t blame them for wanting to receive their commissions more often.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Click Fraud
Click Fraud:
- The deceitful practice of posing as pay-per-click traffic for the purpose of generating false revenue by the affiliates serving the ads. In PPC advertising terms, it generates a charge per click without having actual interest in the target of the ad’s link.
 
This, like the click bot, gives black hat affiliates an unfair advantage over the honest affiliates paying for legitimate traffic.  The black hat, or unethical, affiliates click on the links repeatedly or from proxies to pose as interested traffic that boosts the click rates that increases how much the affiliates get paid, but in reality these clicks shouldn’t count because they’re not individual web users interested in the product or service being advertised, which is what the merchant is essentially paying for.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Click Bot
Click Bot:
- A program generally used to artificially click on paid listings within the engines in order to artificially inflate click amounts.
 
This is bad news for anyone engaging in PPC campaigns, affiliate or not.  With inflated click amounts the prices go up, giving the larger companies an unfair advantage in keeping out their competition.  Studies have shown that the users eyes are more drawn to the sponsored listings at the top of the page, so an inflated price puts the smaller businesses and affiliates at a severe disadvantage.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Banner Ad
Banner Ad:
- An electronic ad in the form of a graphical image that is available in many sizes and resides on a webpage. Banner ad space is sold to advertisers to earn revenue for the website.
 
Banner ads are one of the oldest forms of affiliate advertising and direct online advertising.  However, banner ads are falling out of favor.  According to Jupiter Research Internet Advertising Model 6/08, display ad spending will outpace search ad spend to the tune of $16.4 billion by 2013, but search will still win at $20.9 billion by 2013.  However the banner links are still the easiest way for beginning affiliates to get started.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Keyword Density
Keyword Density:
- The number of repetitions of a keyword as a percentage of the total word count of a web page. For example, if a web page has 200 total words on it and 20 of them are keyword advertising, then the keyword advertising has a 10% keyword density on the page.
 
This is key for SEO, as the higher a keyword’s density the more likely you are to get that organic search traffic for that keyword.  There are a number of tools out there to help you analyze your keyword density, such as the one SEO Tools provides.  I’ve heard different people in the SEO world say different things about the number you should aim for, but what I do know is that there’s no formula to pinpoint that number for you.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Keywords
Keyword(s):
- The word (or words) a searcher enters into a search engine’s search box. Also the term that the marketer hopes users will search on to find a particular page.
 
I think keywords are pretty self explanatory and don’t need my take on it :).
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
				