The basics
Affiliate website

The visitor is interested in a product and clicks the affiliate link to view the product on an advertiser’s website

Affiliate network

We supply the affiliate link and track the referral to the advertiser’s website

Advertiser's website

Makes a purchase on the advertiser’s website within a defined period

Commission

The affiliate receives a commission for the sale

How it works

The affiliate marketing model is a performance based advertising method that enables third parties to earn commission on sales that they initiate.

Affiliate marketing is when a third party (known as an affiliate) promotes an advertiser’s product or service and earns a commission for any sales they generate. An affiliate sends visitors to an advertiser’s website, and if any of these visitors then go on to make a purchase this transaction is then recorded by the network and the network assigns a commission to the affiliate for initiating the sale.

A key advantage of this model, over more traditional promotional channels is that customer clicks and conversions are tracked, so advertisers only pay for actual clicks or sales generated by the affiliate. 
It is free to become an affiliate, and is a great way to monetize an online audience. One of the biggest advantages of becoming an affiliate is you can promote a product without having to own any stock, and if you join a network like SLICE Digital you can access a wide range of advertisers operating in wide range of sectors. 
 

become an affiliate 

Some common terms

Program

Sometimes also known as a campaign or an offer, this is where an advertiser lays out what they are offering affiliates if they promote their brand. e.g, what commissions they offer, are there any exclusions, do they offer voucher codes, etc. plus a bit about who they are.

Dashboard

This is the interface advertisers and affiliates use to review the campaign performance. This is where affiliates can apply for pre-moderation affiliate programs and access tracking links.

Advertiser

Sometimes also known as Merchants. They are brands with transactional websites and who have an affiliate program.

Pre-moderation program

This is when an advertiser either sets a criteria, or asks to review affiliate applications before they can promote their product.

Tracking link

This is a link that can be used by an affiliate, and allows the network to record sales and assign the relevant commission.

Landing page link

These are predefined tracking links which direct to a specific page on the advertisers website.

Cookie period

This is the time between the click and conversion where an advertiser will pay a commission, and is a part of the advertisers affiliate program details.

Conversion rate

This is the ratio between clicks and conversions and can be useful for forecasting earnings. This can also be affected by cookie length as some conversions will automatically decline if outside period.

EPC

This stands for Earnings per Click. If an affiliate knows the average earnings per click they can take this into account for any paid promotions they undertake. For example if an affiliate knows the EPC for a campaign is $2.00 they can budget any promotions accordingly. Unlike the Conversion Rate, this also addresses the number of people clicking through and the likely spend of these referrals.

Pending status

This is when a conversion hasn’t locked so can still be declined or approved by the advertiser.

Approved status

This means the conversion has been invoiced and the advertiser has paid the commission and that you will be included in the next payment run when your balance exceeds the $50.00 threshold.

eDM

This stands for electronic-Direct Mail and is the term used for the email communications we send out on mass to affiliates. This includes the performance stats email and new advertiser program launches and advertiser “deals, discounts and voucher-codes” emails.

Network

This is the platform that is used for recording all affiliate initiated sales, and it is the network that looks after payments.

Affiliate

Sometimes also known as publishers. This is a third party partner who promotes an advertisers product or services, in exchange for commission for sales they have helped drive.

Public program

This is an affiliate program which is available to anyone on the network.

Private program

This is an invite only program which cannot be seen by any affiliates on the network unless invited.

Deeplink

This is a customized tracking link that allows you to send traffic to a specific page on the advertisers’ website, such as a product page or product category.

Commission

This will either be a percentage or a fixed amount, and is the reward offered by the advertiser for driving a sale. This should be balanced against cookie length, conversion rate, and average order values to assess how a program measures up against other programs.

Conversion

This is a goal recorded by the network and will usually represent a sale, but it can also represents other actions such as installing an app, validating an email address, etc. These types of goals will often be unpaid goals but are conditional to a payout. For example if an advertiser only pays out for a new customer they may record a registration goal and a sales goal.

AOV

The Average Order Value is a factor to take into account when picking an advertiser to promote. If an advertiser’s affiliate program has a high conversion rate but a low average order value, it might still only have the same earning potential as an affiliate program with a lower conversion rate but a higher AOV. This is where using earning per click can be useful.

Declined status

This is when a conversion has either been declined by the advertiser, or automatically been declined by the network. It might be declined by the network if it was outside a geographic zone for the advertiser, or outside the cookie period.

Hold status

This means the conversion has locked (cancellation period has expired) and the advertiser has been invoiced.

Payment run

This happens around the 25th of each month and is when we pay affiliates the commissions. We have a threshold of $50.00 so balances below this will carry over until they meet the threshold.

Media deck

Some affiliates will offer additional exposure opportunities in exchange for an increased commission, and some affiliates put together a document to outline the type of exposure (homepage banner, social media shout out, member’s eDM, etc.) and what commission increase they propose for this opportunity. It will also often outline key stats from the affiliate, such as the site visitors, Facebook fans and email subscribers.