13 Important Affiliate Marketing Terms Every Beginner Must Know
Affiliate marketing has its own special language. If you’ve ever read an article or watched a tutorial, you’ve probably run into confusing words like EPC, cookie duration, or tracking links.
Don’t worry! You’re not alone. Every affiliate (including me) had to start from scratch and learn these terms step by step. Once you get the hang of them, everything about affiliate marketing becomes much clearer.
To make things easier, I’ve put together this affiliate marketing cheat sheet. You’ll find simple explanations, real-life examples, and practical tips for each term.
1. Affiliate (Publisher)
An affiliate (also called a publisher) is anyone who promotes a product or service online in exchange for a commission.
Example: If I write a blog post reviewing a laptop and share a special link to buy it, I’m the affiliate. If someone buys through my link, I earn a commission.
Most affiliates focus on one niche (like fitness, tech, pets, or beauty). Building trust with your audience is key. People buy from affiliates they trust.
2. Merchant (Advertiser or Vendor)
The merchant is the company selling the product or service. They set up the affiliate program, decide the commission rate, and provide the marketing materials.
Example: Amazon is a merchant. When you promote products through Amazon Associates (their affiliate program), you’re helping Amazon sell, and they reward you with a commission.
3. Affiliate Network
An affiliate network connects affiliates with multiple merchants. It acts like a middleman, handling tracking, payments, and reporting.
Example: ShareASale lets you promote hundreds of different brands under one account. This saves you from signing up separately with every single merchant.
4. Tracking Link (Affiliate Link)
This is your special link that tracks sales and clicks back to you. It contains your affiliate ID.
Example: If your link looks like amazon.com/product123?ref=paul123, the part after “ref=” identifies you as the affiliate.
Always use your tracking links, otherwise you won’t get credit for the sale.
5. Commission
Commission is the money you earn when someone buys through your link (or completes another action).
Example: If a program pays 10% commission and someone buys a $50 item, you make $5.
Some programs pay per sale, while others pay per action (like signing up for a free trial).
6. Cookie (Cookie Duration)
When someone clicks your link, a cookie is placed in their browser. This cookie keeps track of them for a set period of time (called cookie duration).
Example: If the cookie lasts 30 days and someone clicks your link today but buys two weeks later, you still get the commission.
Some programs have short cookies (24 hours), while others have long ones (90 days or even lifetime).
7. EPC (Earnings Per Click)
EPC tells you how much you earn, on average, for each click on your link.
Example: If you earn $200 from 100 clicks, your EPC is $2.
EPC helps you compare different offers and see which ones are most profitable.
8. CPA, CPL, and CPS Models
These are different payment models:
- CPA (Cost Per Action): You get paid when someone takes an action (like signing up for a free trial).
- CPL (Cost Per Lead): You get paid per lead, like an email signup.
- CPS (Cost Per Sale): You earn a percentage of the product price when a sale happens.
Example: A fitness app might pay you $1 per email signup (CPL) or 20% per subscription sold (CPS).
9. Conversion Rate
This is the percentage of people who click your link and then complete the action (like buying or signing up).
Example: If 100 people click and 5 buy, your conversion rate is 5%.
Higher conversion rates usually mean the product is attractive and your content is working.
10. Creative
Creatives are the banners, images, videos, or email templates that merchants give affiliates to use.
Example: A travel company might give you ready-made banners like “Book your dream vacation today!” to place on your website.
Creatives save time and often boost results.
11. Payment Threshold
Most programs don’t pay you until you reach a minimum balance.
Example: Amazon requires $10 for gift card payouts, while other programs may need $50 or $100 before releasing your payment.
Be patient at the start, hitting that first payout is a big milestone!
12. Subaffiliate or Two-Tier Program
Some programs let you earn money not just from your sales, but also from affiliates you refer.
Example: If you invite a friend to join Wealthy Affiliate and they earn commissions, you get a small bonus on top (without reducing their earnings).
It’s like building a mini-team that boosts your passive income.
13. Disclosure
You must tell your audience that you use affiliate links. This builds trust and keeps you legal (FTC requires it in the U.S.).
Example: A simple line like:
“This post contains affiliate links. If you buy through them, I may earn a commission at no extra cost to you.”
Being transparent actually makes readers trust you more.
Tips for Affiliate Marketing Success
- Stay updated: Join affiliate forums or communities like Wealthy Affiliate to learn the latest strategies.
- Build trust first: Write honest reviews and guides. Don’t just “push” products.
- Experiment with content: Try blog posts, YouTube videos, email newsletters, or even TikTok.
- Track your numbers: Use Google Analytics and affiliate dashboards to measure clicks, conversions, and commissions.
- Don’t chase everything at once: Start with a few products in your niche and grow slowly.
Learning the lingo is like learning the ABCs of affiliate marketing. Once you understand these terms, you’ll feel more confident when joining programs, creating content, and tracking results.
FAQs
What is an affiliate (or publisher) in affiliate marketing?
An affiliate, also known as a publisher, is anyone who promotes a product or service online in exchange for a commission. Typically, they focus on a specific niche and build trust with their audience.
Who is a merchant in affiliate marketing, and what do they do?
The merchant is the company selling the product or service, setting up the affiliate program, deciding the commission rate, and providing marketing materials for affiliates.
What is an affiliate network and how does it help affiliates?
An affiliate network connects affiliates with multiple merchants, acting as a middleman that manages tracking, payments, and reporting, making it easier for affiliates to promote various brands.
What is a tracking link in affiliate marketing?
A tracking link is a special URL that tracks sales and clicks back to the affiliate, containing their unique ID, ensuring they get credited for the referral.
What does commission mean in affiliate marketing?
Commission is the money earned by an affiliate when someone buys through their link or completes another specified action, often calculated as a percentage of the sale or a fixed amount.
Bookmark this guide. It’s your personal affiliate dictionary. I still use my own cheat sheet whenever I need a quick reminder.
I’ve created a PDF Affiliate Marketing Terms Cheat Sheet with all the key terms and easy explanations.
You can download it here: affiliate_marketing_terms_cheat_sheet.pdf
Remember, affiliate marketing is a marathon, not a sprint. But the more you learn, the faster you’ll grow.
Paul, M. —About Me
