Affiliate marketing glossary
Fifty terms you will meet in program agreements, network dashboards and partner calls, defined in plain English.
A
- Advertiser
- The business that runs an affiliate program and pays commission. Also called the brand or merchant.
- Affiliate
- A person or company that promotes another business’s products in exchange for commission. Also called a publisher or partner.
- Affiliate agreement
- The contract that sets commission, payment terms, allowed promotion methods and disclosure rules. Read it before promoting.
- Affiliate manager
- The person at a brand or agency who recruits, supports and pays partners. A responsive one is worth a slightly lower rate.
- Affiliate network
- A platform that tracks sales, pays partners and gives brands access to its publishers, such as Awin, CJ or Impact.
- Attribution
- The rules that decide which partner gets credit for a sale when several were involved.
- Attribution window
- How long after a click a purchase still counts. See cookie window.
- Average order value (AOV)
- Total revenue divided by number of orders. Percentage commissions scale with it.
B
- Bounty
- A fixed amount paid for each qualifying customer or signup, regardless of order size.
- Brand bidding
- Buying search ads on a brand’s name and sending the clicks through an affiliate link. Most programs prohibit it.
C
- Cashback site
- A publisher that shares part of its commission with shoppers. Useful for conversion, but often credited with sales other partners created.
- Chargeback
- A payment reversed by the customer’s bank. The related commission is usually reversed too.
- Clawback
- Recovering commission already paid when a sale is later refunded or found to be fraudulent.
- Click-through rate (CTR)
- The share of readers who click a link: clicks divided by views.
- Commission
- What a partner earns for a qualifying action: a percentage, a fixed bounty or both.
- Conversion rate
- The share of clicks that become sales or signups.
- Cookie
- A small file in the browser that records which partner referred a visitor.
- Cookie stuffing
- Fraud that drops affiliate cookies on people who never clicked a link.
- Cookie window
- How long a referral stays valid after a click, from 24 hours to the life of the account.
- Coupon site
- A publisher that lists discount codes. Programs often set special rules or rates for them.
- CPA (cost per action)
- Paying a fixed amount when a defined action happens, such as a sale or trial.
- CPC (cost per click)
- Paying per click rather than per sale. Rare in affiliate marketing because it invites fraud.
- CPL (cost per lead)
- Paying a fixed amount for each qualified signup or enquiry.
- CPS (cost per sale)
- Paying commission only when a purchase is completed.
D
- Deep link
- An affiliate link to a specific product or page rather than the homepage. It usually converts better.
- Disclosure
- A clear statement telling readers you may earn from a recommendation. Required by the FTC and most programs.
E
- EPC (earnings per click)
- Total commission divided by clicks. The fairest single number for comparing programs. Try the EPC calculator.
F
- First-click attribution
- Giving credit to the partner who introduced the customer, rather than the last one clicked.
H
- Hybrid commission
- A mix of models, such as a bounty for the first sale plus a smaller recurring percentage.
I
- Incrementality
- Whether a partner created a sale that wouldn’t otherwise have happened. Brands increasingly pay more for incremental partners.
- In-house program
- A program run on the brand’s own affiliate software instead of a network.
L
- Last-click attribution
- The industry default: the last affiliate clicked before purchase gets all the credit.
- Lead
- A potential customer who has shared contact details or requested information.
- Lifetime commission
- A recurring commission paid for as long as the referred customer keeps paying.
- Link cloaking
- Hiding a long affiliate URL behind a short, clean one on your own domain. It never replaces disclosure.
- Locking period
- The date after which pending commissions can no longer be changed and are approved for payment. See validation period.
M
- Material connection
- Any relationship that could affect how people view a recommendation, such as payment, free products or employment. It must be disclosed.
- Merchant
- Another word for the advertiser or brand.
N
- Network fee
- What a network charges a brand on top of commission, as a percentage of sale value or of commission, plus any monthly fee.
O
- Override
- A network’s cut calculated as a share of the commission a brand pays partners.
P
- Payout threshold
- The minimum balance you must reach before a program pays you.
- Postback
- Server-to-server tracking that reports a sale directly from the brand’s system to the platform, without relying on browser cookies.
- Publisher
- A site, creator or company that promotes products as an affiliate.
R
- Recurring commission
- Commission paid on every renewal of a subscription, for a set period or for life.
- Referral program
- A program that rewards customers for recommending a product to people they know, usually with credits or discounts rather than cash.
- Revenue share
- Commission as a percentage of the revenue a customer generates.
- Reversal
- A commission cancelled because the sale was returned, refunded, unpaid or invalid.
- RPM
- Revenue per thousand pageviews. Useful for comparing affiliate income with display ads.
S
- Server-side tracking
- Tracking that records clicks and sales on servers rather than in the browser, so privacy tools and blockers lose fewer sales.
- SubID
- An extra tag you add to an affiliate link to see which page, button or campaign produced a sale.
- Sub-affiliate
- A partner recruited by another partner, who may earn a share of their commissions in two-tier programs.
T
- Tracking link
- A link that carries your partner ID so the program can credit you.
- Two-tier program
- A program that also pays you a share of commissions earned by partners you referred.
U
- UTM parameters
- Tags added to a URL, such as utm_source and utm_campaign, that tell analytics tools where a visit came from. Build them with the link builder.
V
- Validation period
- The time a brand takes to confirm sales before approving commission, often 30 to 90 days.
Missing a term? Suggest one, and see the Academy for the concepts in context.