Know These Affiliate Marketing Terms Before You Start Your Online Career

It is vital that you understand the language of affiliate marketing. It is important that you know what it means in order to sign up for programs that are worth your time.

Also read the terms and conditions for affiliates because not knowing these can bring you in serious trouble. You should at least understand the following terms and abbreviations.

Super Affiliate: This refers to anyone who is making a lot of money in affiliate marketing, if you are an affiliate. However, if you have an affiliate program for your own product, this refers to your top affiliates: the ones who are making the most sales for you.

Opt-In: This refers to ezine subscriptions, newsletter subscriptions, or email lists in general. Basically, it means that the subscribers on any email list have chosen to receive the information the list owner is sending. Typically, they have confirmed their email address and their request by clicking on a link in a confirmation email, which is known as double opt-in.

1st Tier and 2nd Tier: If you are signing up for an affiliate program, directly through the company, you are first tier. If you are signing up under someone else, you are 2nd tier. However, when someone signs up under you, you are first tier, and they are your 2nd tier. Each tier gets a different commission rate for sales. In other words, when you sign up under someone else, when you make a sale, you get a full commission, and the person you signed up under gets a partial commission.

Joint Ventures: Joint ventures are similar to affiliate programs, but they operate a bit differently. The concept is the same: one person promotes another person’s product for a commission. However, usually the commissions are bigger, and the person doing the promoting is working directly with the owner of the product.

Direct Mail: This refers to advertising that is done via postal mail. There are strict laws about direct mail, and many affiliate programs will have terms and conditions relating to direct mail to promote their product.

Cookies: A cookie is a piece of code that is written to the cookie file on a person’s computer when they click on an affiliate link or when they visit sites that use cookies, such as sites that require a login. The cookie does not harm your customer’s computer at all, and is simply there to make sure that you get credit for the sale if they come back later to make a purchase.

Affiliate Agreement: The agreement that usually lists the terms and conditions related to an affiliate program. In most cases, you will agree to the affiliate agreement by checking a box when you fill out an online form to join the program. Some affiliate programs, however, will require you to print out, sign, and fax the agreement. Make sure you read these agreements.

Conversion Rate: This is the number of sales in relation to the number of clicks received. Usually portrayed as a percentage.

Commission: The amount of money that you as an affiliate will receive per sale. Some companies will list this as a percentage, such as 50%, while others will list it as a dollar figure.

Associate or Associate Program: This is the same as an affiliate program.

Banner Ad: A graphic that is placed on your website and linked with your affiliate link.

If at any time you come across other terms or abbreviations of which you don’t know the meaning then try to find out what they are about. This may avoid problems later on.

Direct Marketing VS Bigger Signage

Often I am ask by marketing students to compare different types of advertising a marketing. Once, I was ask a Case Study Question; Which is better Direct Mail Marketing or a Bigger Sign on your business? Well, I said I will answer your question if you give me more details.

Such as where would I be sending these direct mail pieces? Was my business on a major thoroughfare? Where did my customer base currently come from? What is my target market? What type of signage is out there now and what is the sign made out of?

Well the student who asked the question gave up and withdrew they question so I began to carefully construct a creative scenario. Okay, my business is a car wash on the busiest street in town and 80% of my customers come from a 10-mile radius, which spans 20,000 people in two zip codes plus one more zip code of PO Boxes.

My current sign is wood and decaying, the new city sign ordinance implemented last year due to lobbying by the Chamber of Commerce allows for triple the size and a higher pole out front. The new sign I want costs $4,000 and I get no trade in value for the old sign, its basically fire wood.

In this case I choose to cut down my direct mail for the year by 4 mailings. Currently I do eight per year of the 10-mile radius at $1,000 each. Instead I will do only 4 mailings and build my sign. So what does this say about, which is the better way to advertise? It says they are both good and you should consider this in 2006.

5 Ways to Customize Your Marketing to Directly Reach Prospects Most Likely to Buy

1. Direct mail: This is a common and well-known form of direct marketing and is employed in for-profit businesses, charities, non-profits and other organizations. The term “direct mail” refers to communications sent to potential customers or donors via delivery services (such as the postal office). Direct mail includes: advertising circulars, catalogs, free-trial CDs, pre-approved credit card applications, and other unsolicited merchandising invitations. Advertisers find direct mail appealing because it sends their message directly to the consumer. Another advantage is that their message is sent as narrowly or broadly as desired, with the convenience of bulk mailing rates.2. Door hangers: For businesses, door hanger marketing offers enormous value and has great potential to gain clientele. Door hangers are automatically set apart from other junk mail because they are near impossible to ignore, while at the same being extremely cost-effective to print and distribute. Not surprisingly, door hangers often achieve a high response rate. It is important to make sure that the advertisement look professional and that your printer offers quality results, as customers associate the quality of a door hanger with the quality of a company’s products, services and customer support team.3. Email marketing: This form of direct marketing uses electronic mail as a means of communicating commercial or fund-raising messages to an audience. Email marketing involves sending email messages with the purpose of enhancing the relationship of a merchant with its current or previous customers. This is an effective way to encourage customer loyalty and repeat business, as well as the potential to gain new customers. Advertisers can reach substantial numbers of email subscribers who have opted to receive email communications on subjects of interest to them and thus is considered the most effective online marketing method.4. Text campaign: An important way to customize your marketing directly to those who want to buy and allow you to communicate with your customers in real-time is through text messaging. The benefit of text campaign marketing is that it makes advertising more personal, tells your customers more about your product and stimulates spending. Through the use of a computer or cell phone, you can compose and send a text marketing message anytime, anywhere, as well as set-up recurring messages for certain days or times. Furthermore, by addressing your customers by name you add a personal element, which increases your response rates.5. Calling: This form of communicating with your prospective customers enables you to talk to them directly about your products and services. Moreover, you can get direct and detailed feedback. Calling allows you to tell them what your purpose of calling is and makes for stronger relations. There are less chances of delayed feedback, and when you call you actively motivate interest and spending.With these methods of marketing you have a much greater chance to increase customer loyalty and spending.