Online Marketing Glossary: Residual Earnings
Residual Earnings:
- A program that pays affiliates not just for the first sale, but all additional sales made at the merchant’s site over the life of the customer.
It’s my understanding that not many programs offer this anymore due to the incredible expense it could lead to if the customer is a good customer. More often programs are offering second tiers and giving commissions to the affiliate on the sales affiliates they’ve referred to the program are making.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Commission
Commission (also Referral Fee, Finder’s Fee, Bounty):
- The income an affiliate receives for generating a sale, lead or click through to a merchant’s website.
AKA, the reason there are affiliates at all. You have to give a person something to motivate them to promote your brand as a merchant. In performance marketing, that “something” is the commission. Without the commission you’d be asking these online advertisers to promote your service just because they like you, and you wouldn’t get a whole lot of response 🙂
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Advertiser
Advertiser (also Merchant or Retailer):
- Any website that markets and sells goods or services. In affiliate marketing programs, advertisers contract with affiliates to get consumers to register for services, purchase products, fill out forms or visit websites.
Basically, the person paying for those leads & sales is the advertiser. In affiliate marketing, the advertiser is responsible for funding the commission pages, providing coupon codes and creative banners, text links, etc. The success of the program rests ultimately on the shoulders of the advertisers. Imaging the pressure on me at PsPrint!
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Pay Per Sale
Pay Per Sale (PPS):
- A program where an affiliate receives a commission for each sale of a product or service that they refer to a merchant’s website. Pay-per-sale programs usually offer the highest commissions and the lowest conversion ration.
This is the most common model of affiliate program. The merchant puts the pressure of generating a sale on the affiliate, but in exchange will give that person a higher commission since it’s a guaranteed sale. Generally commissions I’ve seen range from 5% to 20%, with some exceptions of course. This model of program is the most beneficial for most merchants since they are paying exclusively for the most beneficial form of performance – the sale, which makes them the most money of course in any of the pay-per models.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Pay Per Lead
Pay Per Lead (PPL):
- A program where an affiliate receives a commission for each lead that they generate for a merchant website such as completed surveys, contest or sweepstakes entries. Pay per lead generally offers midrange commissions and midrange-to-high conversion ratios.
Merchants typically use this model when they want to follow up with leads to complete the sale themselves. They take the pressure of conversions off of the affiliate and take it on themselves, usually with follow up via email campaigns or salespeople.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Pay Per Click
Pay Per Click (PPC):
- A program where an affiliate receives a commission for each click they refer to a merchant’s website. PPC offers some of the lowest commissions and high conversion ratio since visitors need to only click on a link to earn the affiliate a commission.
The most common search engine utilizing PPC is Google AdWords, however some PPC affiliates are also fond of Yahoo and MSN due to the lack of saturation of the market there. The downside is that not as many consumers are using Yahoo or MSN to search than Google. Some of the most successful super affiliates are PPC affiliates.
PPC is the core of search engine marketing (SEM).
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
