Affiliate marketing is one of the most popular online business models, allowing individuals and companies to earn commissions by promoting products or services. Whether you are a beginner or an experienced marketer looking to refresh your knowledge, this Affiliate Marketing Glossary explains the key terms you need to succeed.

In this SEO-optimized guide, we break down essential affiliate marketing terms used in CPA networks, advertising platforms, and performance marketing.

What Is Affiliate Marketing?

Affiliate marketing is a performance-based marketing model in which an affiliate earns a commission for promoting a product or service offered by an advertiser (merchant). Payment is typically made when a specific action occurs, such as a sale, registration, or lead submission.

Core Affiliate Marketing Terms

1. Affiliate

An affiliate is an individual or company that promotes a product or service in exchange for a commission on successful conversions.

2. Advertiser (Merchant)

An advertiser or merchant is a business that owns the product or service and pays affiliates for driving traffic or conversions.

3. Affiliate Network

An affiliate network acts as an intermediary between advertisers and affiliates. It provides offers, tracking systems, reporting dashboards, and payment processing.

Popular affiliate networks include:

• ClickBank

• CJ Affiliate

• Rakuten Advertising

4. Offer

An offer is a specific deal provided by an advertiser that includes payout details, traffic requirements, GEO targeting, and payment model.

5. CPA (Cost Per Action)

CPA (Cost Per Action) is a payment model where affiliates earn a commission when a user completes a specific action, such as signing up or filling out a form.

6. CPC (Cost Per Click)

CPC (Cost Per Click) means affiliates or advertisers pay for each click generated.

7. CPM (Cost Per Mille)

CPM (Cost Per Mille) refers to the cost per 1,000 ad impressions.

8. CPS (Cost Per Sale)

CPS (Cost Per Sale) is a commission model where affiliates earn a percentage or fixed amount per completed sale.

9. Conversion

A conversion occurs when a user completes the desired action.

Conversion Rate (CR) is the percentage of visitors who convert compared to the total number of visitors.

10. Tracking

Tracking refers to the technology used to monitor user actions and attribute conversions correctly. It typically involves cookies, tracking pixels, and postback URLs.

11. Cookie Duration

Cookie duration is the length of time after a user clicks an affiliate link during which the affiliate can still earn a commission.

12. EPC (Earnings Per Click)

EPC (Earnings Per Click) measures the average earnings generated per click and helps affiliates evaluate offer performance.

13. ROI (Return on Investment)

ROI (Return on Investment) calculates profitability by comparing revenue to advertising costs.

Formula:
ROI = (Revenue – Cost) / Cost × 100%

14. GEO

GEO refers to the geographic location (country or region) targeted by an offer or advertising campaign.

15. Traffic Source

A traffic source is the platform or channel used to drive visitors to an offer.

Popular traffic platforms include:

• Google Ads

• Facebook Ads

• TikTok Ads

16. Landing Page

A landing page is a dedicated webpage designed to convert visitors into leads or customers.

17. Pre-Landing Page (Pre-lander)

A pre-landing page is an intermediate page used to warm up users before sending them to the main offer page.

18. Smartlink

A smartlink automatically redirects users to the most relevant offer based on factors such as GEO, device type, and performance data.

19. Sub ID

A Sub ID is a tracking parameter added to affiliate links to identify traffic sources, campaigns, or ad variations.

20. Payout

Payout is the commission amount an affiliate earns for each approved conversion.

Why Understanding Affiliate Marketing Terms Matters

Knowing key affiliate marketing terminology helps you:

• Analyze campaign performance accurately

• Optimize traffic and conversions

• Improve ROI

• Choose profitable offers

• Avoid common beginner mistakes

Final Thoughts

Affiliate marketing offers scalable income opportunities, but success depends on understanding performance metrics, tracking systems, and compensation models.

This Affiliate Marketing Glossary provides a strong foundation for beginners and experienced marketers alike. By mastering terms like CPA, EPC, ROI, Conversion Rate, Tracking, and Smartlink, you can make data-driven decisions and scale your campaigns effectively.