Affiliate marketing is one of the most effective and scalable ways to generate income online. Whether you’re just starting out or looking to optimize your affiliate strategy, understanding the industry terminology is essential.
This Affiliate Marketing Glossary covers all the essential terms you’ll encounter in the affiliate world, from basic concepts to advanced performance metrics.
What Is Affiliate Marketing?
Affiliate marketing is a performance-based marketing model where affiliates (partners) promote a company’s product or service and earn a commission for every specific action — such as a sale, click, or lead — generated through their marketing efforts.
Affiliate Marketing Glossary: 20 Must-Know Terms
1. Affiliate (Publisher, Partner)
A person or business that promotes a product or service in exchange for a commission.
2. Merchant / Advertiser
The company offering a product or service that’s being promoted by affiliates.
3. Affiliate Program
A structured program offered by merchants where affiliates can join, receive tracking links, and earn commissions.
4. Affiliate Network
A third-party platform that connects merchants with affiliates and handles tracking, reporting, and payouts (e.g., ShareASale, CJ, Impact).
5. Commission
The payout an affiliate earns for each conversion (click, sale, lead, etc.).
6. CPA (Cost Per Action)
A pricing model where affiliates earn money when users perform a specific action (e.g., filling out a form, signing up, making a purchase).
7. CPL (Cost Per Lead)
A commission model where affiliates get paid for every lead they generate (usually a completed form or registration).
8. CPS (Cost Per Sale)
A payout model based on completed purchases referred by the affiliate.
9. Conversion
A desired user action (purchase, sign-up, download) that counts as a success.
10. Conversion Rate (CR)
The percentage of users who take the desired action compared to the total who clicked.
11. Click-Through Rate (CTR)
The ratio of users who click on an ad or link to those who viewed it.
12. Cookie Duration
The time frame during which a referral is valid after a user clicks an affiliate link (e.g., 30 days).
13. Landing Page
The web page users are directed to after clicking an affiliate link. Its goal is to convert.
14. Tracking Link
A unique affiliate link that tracks clicks, conversions, and commissions.
15. EPC (Earnings Per Click)
The average commission earned per click. A key metric to evaluate affiliate offers.
16. Payout
The amount of money an affiliate receives after commissions are calculated.
17. Offer
The specific product or campaign affiliates are promoting, often with set rules and commission rates.
18. SubID / Sub Tracking
A parameter affiliates can add to track traffic sources or specific ad placements.
19. Fraud
Any dishonest or fake activity (like bot clicks or fake signups) intended to manipulate affiliate payouts.
20. ROI (Return on Investment)
A metric to measure profitability — the ratio of earnings to the cost of generating them.
Why This Glossary Matters
Understanding affiliate marketing terminology will help you:
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Make smarter decisions with offers and networks
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Improve campaign performance
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Read reports and dashboards more confidently
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Communicate like a pro with advertisers and affiliate managers
Quick Tips for Beginners
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Focus on CPS and CPA models to start earning from actions and sales.
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Choose affiliate programs with long cookie durations and high EPC rates.
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Use SubIDs to track which traffic sources bring the most conversions.
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Keep learning — terms evolve, especially with trends like influencer marketing and AI tools.
Final Thoughts
This Affiliate Marketing Glossary is your quick-reference guide to the language of affiliate marketing. Whether you’re launching your first campaign or scaling your performance, mastering these terms will help you navigate the affiliate ecosystem like a pro.