101 affiliate Marketing

Invented by CDNow.com at the end of 1994 and pioneered by Amazon.com in 1996, "affiliate programs", also known as Associate Programs or Partner Programs, are a simple way for Web sites to generate revenue by directing traffic toward other sites and a great way for the operating site to increase its traffic and revenue.
Because affiliate programs are so convenient and work so well, they have become the industry's dominant method of online Marketing.
There are 4 different kinds of affiliate programs to compensate "Affiliates" (or referring sites) for generating traffic to the Affiliate Program operating Website: Pay-Per-Impression, Pay-Per-Click, Pay-Per-Lead and Pay-Per-Sale.
Pay-Per-Impression (CPM)
Pay-Per-Click (CPC) Model
Contextual Advertising
Search Engine Marketing (SEM)
Pay-Per-Call
The Pay-Per-Lead (CPA or CPL) Model
The Pay-Per-Sale (CPS) Model
CPA or CPS?
If you want to use an Affiliate Program as an Online Merchant for the whole purpose of customer acquisition, consider the CPA Model and pay a flat commission for new customers referrer by affiliates. Do the math to come up with a Flat Commission that makes it worthwhile for affiliates to promote you. Affiliates are not waiting for you, the next Merchant that has a Program is only one click away.
Important Abbreviations
• CPA - Cost per Action
• CPC - Cost per Click
• CPL - Cost per Lead
• CPM - Cost per (Mil) Impression (1000 Impressions)
• CPS - Cost per Sale
• CR - Conversion Rate
• CTR - Click through rate
• DRM - Dynamic Rich Media (type of Ad, technology). It has nothing to do with DRM as in Digital Rights Management
• EPC - Earnings per Click / Earnings per 100 Clicks
• OPM - Outsourced (Affiliate) Program Management
• PPC - Pay per Click
• ROI - Return of Investment
• SE - Search Engines
• SEM - Search Engine Marketing
• SEO - Search Engine Optimization
• SERP - Search Engine Result Page
• SID - URL Parameter the Affiliate can pass to get tracked with Sales and Leads
Abbreviations of Websites you will come across
• ABW - ABestWeb - Affiliate Marketing Forum
• CJ - Commission Junction - Affiliate Network
• LS - Linkshare - Affiliate Network
• MyAP - My Affiliate Program - In-House Program Solution
• PF - Performics - Affiliate Netwok
• SAS - ShareASale - Affiliate Network
• SEW - Search Engine Watch - News and Resources
• SR - Share Results - Affiliate Network
• TW - Thread Watch - Internet Marketing News Discussions
• WW - Webmaster World Forums

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