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

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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

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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

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