Advertise use sophisticated method to reach people. Internet uses can identify a banner or text ad, but many can’t tell about performance marketing also known as affiliate marketing.

Affiliate Marketing is the marketing of products and services online. It includes a retailer and a publisher, also known as an affiliate.

Publisher is an independent party who promotes the products or services of an advertiser and in return, he gets the commission on leads or sales. He does this by displaying ads, text links, or product links on its Web site, in email campaigns, or in search listings. Advertiser pay him when a visitor takes a specific action, such as filling out a form, making a purchase or subscribing to a service.

A  merchant, also known as an advertiser or retailer, that sells a product or service online, accepts payments and completes orders. If you place an ad or link f merchant’s products and/or services on your web site, the merchant pays you a commission for every lead or sale generated through your site.

If you want to be a publisher you have a web site designed for a specific niche of consumers or audience. You should also have basic HTML skills to insert and track advertisements such as banners, buttons and links.

Common terms use in affiliate marketing.

Commission Payout

This is the amount received by a publisher for some quantifiable action such as selling an advertiser’s product and/or service on the publisher’s web site.

Click Through Ratio (CTR)

It’s the action taken by the consumer when they are referred from a web site through a link or advertisement and is taken to another web site. It is the percentage of click for the number of advertising impressions displayed.

Cost Per Action (CPA)

It is also known as pay for performance. It’s a metric for online advertising where a rate is set for every action that is taken by an end-user.

Cost per thousand impressions (CPM)

A metric for online advertising where a rate is set for every thousand impression.

Conversion Rate

It’s the percentage of visitors who take a desired action. It can be a sale on the advertiser’s web site, completing a lead form, or another action.

Impression

It’s the view of an advertising banner, link, or product when a user visit website.

Search Engine Marketing (SEM )

It means marketing a web site through search engines. It can be paid or free.

Search Engine Optimization (SEO)

The process of increasing the traffic to a Web site by ranking high in the search results of a search engine. This can be done by optimization a website and through various other methods.