Online Marketing Glossary: Cost per Sale
Cost per Sale (CPS):
- The term for advertising in which the advertiser pays only for those clicks where the user clicks through on the banner or ad and actually purchases a product on the advertiser’s site.
This is the model that most retail businesses use in their affiliate programs. Traditionally, LinkShare has been the network most associated with having retail offers, but the game is constantly changing. Many networks have retail offers with CPS models now.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Cost per Order
Cost per Order (CPO):
- The cost metric for each time an order is transacted.
This is what we do at PsPrint. Every time an order is placed, we calculate the commission based off this amount for the affiliate. Many retail programs are similar, putting the onus on the publisher to market the product and assist in making the sale.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Cost per Lead
Cost per Lead (CPL):
- The cost an advertiser pays per qualified leads.
The CPL model is beneficial for merchants with robust inside and outside sales teams that can follow up on the leads collected by their affiliates. The affiliate is only delivering basic information from interested consumers, making it easier for the sales team to close the deal.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Cost per Click
Cost per Click (CPC):
- The cost metric for each click to an advertising link.
I remember this type of advertising was all the rage in the early part of this decade, but has since fallen out of favor since the qualified leads are not as reliable or bountiful.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Cost per Action
Cost per Action (CPA):
- The cost metric for each time a commissionable action takes place.
CPA is a blanket term that describes most of the affiliate structure. There are more specific models with their own descriptions that fall under this term.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Cost per Aquisition
To begin, isn’t it sad that I’ve just NOW got around to reading Issue 22 of Revenue Magazine?! I think our subscription might have run out since I got this copy from the stack that editor Lisa Picarille brought to last week’s BAAMC meeting.
Regardless, I’ve let my glossary series’ go once the link series was done. I just haven’t found another good list of definitions to share with you. But here’s a beauty, all online marketing related terms. So this starts the series, first the term and definition, then how this affects me so far and my take. Let the fun begin!
Cost per Acquisition:
- The cost metric for each time a qualifying action, such as sales and registrations, takes place.
Most affiliate programs use this model. Many retail merchants prefer to pay for performance to guarantee that they’re making money while paying commissions. The frequently used abbreviation CPA, however, doesn’t mean cost per acquisition, so watch out.
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Glossary Definition From ABCs of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
