Common terms about Affiliate Programs
Posted by Fione Tan, head internet marketing coach
During my coaching discussion with one of my DVD internet marketing home study coaching student, she raised these common questions that you too, might also face when intending to join affiliate programs.
1. What is the meaning of pay per sale and pay per lead?
Pay per sale means you refer sale fo US$100 & if commission is 15% then you earn US$15. Pay per lead is more popular for B2B or the sales cycle that are longer (eg require many follow up etc). Pay per lead eg can be US$2 per form filled or the US$3 per free member recruited
2. What is the meaning of cookies?
Cookie means they track when the customer you refer came back & make the first purchase. You refer Mary but she clicked & didn’t buy today, but came back 3 weeks later so you will still get paid. 1 year means if user come back within 1 year from the day she clicked.
- cookie is a code that is installed into the client’s pc when they visited the merchant’s site. So if user use another pc or clicked on another resellers link or formatted the pc, then the cookie won’t matter anymore
3. What is the meaning of 2 tier affiliate program?
2 tier means if you get a client who buy , then you get the commission. If the person you refer didn’t buy BUT joined the affiliate program then you will also get to override on this affiliate’s sale. This means that whether you refer a sale and refer another affiliate (reseller), you can get to earn the direct commission on sales, or to earn the over-riding commission on what your other referred affiliates are making.
Basically, it is free to join affiliate program, if you are an affiliate but if you want to start this affiliate program & become a merchant then you need to pay.
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August 29th, 2007 at 12:53 pm
Fione,
Thank you for keeping the KISS principle for those people who are not as smart.
I like this simple Q&A explanation.
Basil
August 30th, 2007 at 12:44 pm
Simplicity is good
May 11th, 2008 at 12:15 pm
We learned much skill about Affiliate program, its very useful for us to start about this program in our website. We impressed about this course.The skill will assist us to make more money.