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Affiliate Marketing Basics · Lesson 2 of 7

Common Affiliate Marketing Terms

There are key terms and phrases that you need to navigate an affiliate program like a professional.

1 Learn the concept

There are key terms and phrases that you need to navigate an affiliate program like a professional. Knowing the vocabulary helps you read agreements, understand reports and talk with partners. This lesson explains the most common terms.

A table of common affiliate terms and their meaningsTERMS TO KNOWTermMeaningCommissionWhat the affiliate earns per sale or actionCookie windowHow long after a click a sale still countsEPCEarnings per 100 clicksConversion rateShare of clicks that lead to a salePayout thresholdMinimum earned before payment
Learn these before you sign any agreement.

2 See it in action

  • Merchant or advertiser: the business that sells.
  • Affiliate or publisher: the partner who promotes.
  • Commission: the payment per sale or lead.
  • Cookie duration and attribution: how long and to whom a sale is credited.

Worked example

Comparing two programs

Program A: 10 percent, 30-day cookie, EPC $40.

Program B: 15 percent, 24-hour cookie, EPC $20.

Choose: A, since the longer window and higher EPC suggest better earnings.

Check: read the terms for payout thresholds and rules for how sales are counted.

3 Study an example

Example scenario

A new affiliate reads that the cookie period is thirty days and the commission is ten percent. She understands that sales made within a month of the click can earn her a commission.

4 Apply it and download

  1. Define ten terms in your own words.
  2. Find them in a sample agreement.
  3. Save them in a glossary.

Worksheet Affiliate program launch checklistOpen, print or save as PDF

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