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: Targeted Marketing
Targeted Marketing:
- The act of making the right offers available to the right customer at the right time.
So, I added “available” to the definition, although I think that might just have been a typo from the original article online. Like visitor segmentation, targeted marketing will boost conversion rates by giving the visitors what they want.
I’ll take a minute to talk about the ills of NOT using targeted marketing. If you have a website about memorials for lost loved ones, don’t serve ads for dating services. If your website is about international delicacies, don’t serve ads for pet adoption – it sends the wrong message.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Multilevel Marketing
Multilevel Marketing (also Two-Tier Marketing):
- Affiliate program structure whereby affiliates earn commissions on their conversions as well as conversions of webmasters they refer to the program.
This is a pretty sweet deal, and encourages influential bloggers and other publishers that are happy with your program to become evangelists and in turn encourage the people who pay attention to them to pay attention to your program. There are not many affiliates out there that can successfully parlay this deal into a profitable one, so it’s a relatively easy feature a merchant can add to their program to increase their attractiveness to the publishers.
Although I have to admit that I’ve been using the term two-tier wrong for a couple of years! Did anyone else think two-tier was when you offered different commission rates to publishers driving sales in different brackets (i.e. 8% for sales <$10k/mo, then 10% for sales >$10k/mo)? I know someone had to have taught me that, so shame on them! 😉
But now we all know, and knowing is half the battle!
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Gateway Page
Gateway Page (also Doorway Page):
- A webpage created in hopes of ranking well for a term in a search engine’s nonpaid listings.
These gateway pages uses organic search and SEO to their advantage, trying to make the most money as possible off affiliate links on the page without paying for traffic. Often these pages are created without a full website behind them, garnering the term “thin affiliate” sites.
Lately what I’ve been seeing is a lot of affiliates using Blogger to set up these pages. Instead of setting up a traditional blog in the true sense of the term, these affiliates create one long, keyword laden post and then put affiliate links in the sidebar. It doesn’t require any money to set up – no coding knowledge necessary, no domain name purchased, and no PPC campaigns to drive traffic. These affiliates are relying purely on the organic search results to drive traffic and are hoping to drive sales.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Bid
Bid:
- The maximum amount of money that an advertiser is willing to pay each time a searcher clicks on an ad. Bid prices can vary widely depending on competition from other advertisers and keyword popularity.
Clearly this is not the ONLY definition of the word “bid”, just the definition most associated with online marketing. Anytime you vie for position within the search engines with paid campaigns, you’re bidding on that position via the keyword.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Revenue-Sharing Program
Revenue-Sharing Program:
- A program that allows merchants and website owners to increase sales. The host site links to the merchant with a banner, button or text link, for a fee. The merchant pays the website owner for increased traffic, sales and leads from the host site.
This seems like the less guaranteed way to go about performance marketing. I don’t have a lot of experience with this either, so someone out there that does… school us in what the benefit of this would be over pay per impression (PPI) models?
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
