Understanding affiliate marketing becomes much easier once you know the basic terms. Most beginners get overwhelmed because every video, blog post, and training throws jargon at them without explaining what anything means.
This affiliate glossary breaks everything down in simple, beginner‑friendly language so you can learn faster, take action sooner, and avoid confusion as you build your online business.
Essential Terms
Affiliate
A person who promotes a product or service and earns a commission when someone buys through their link. If you’re brand new, start by learning what affiliate marketing is.
Merchant
The company or individual who owns the product being promoted.
Offer
The specific product, service, or program you’re promoting.
Landing Page
A focused page designed to get someone to take one action — usually entering their email or buying something.
Funnel
A step‑by‑step process that guides someone from visitor → lead → customer. For a simple breakdown, see how the affiliate process works.
Conversion
When someone takes the action you want (email signup, purchase, etc.).
Commission
The money you earn when a conversion happens.
Cookie
A small tracking file that tells the merchant who referred the customer.
Cookie Duration
How long the cookie stays active. If someone buys within that time window, you get credit.
Traffic Source
Any place where visitors come from — email, YouTube, Pinterest, paid ads, etc.
Tracking Terms
Click‑Through Rate (CTR)
The percentage of people who click your link after seeing it.
Earnings Per Click (EPC)
How much money you earn on average for every click you send to an offer.
Conversion Rate (CR)
The percentage of people who take the desired action after clicking.
Unique Clicks
The number of individual people who clicked your link (duplicates removed).
Raw Clicks
Total clicks including duplicates — useful for measuring engagement.
Tracking Link
A special link that tracks clicks, leads, and sales back to you.
Pixel
A small piece of code used to track behavior, conversions, and retargeting.
Attribution
How a sale is credited — first click, last click, or multi‑touch.
Split Testing (A/B Testing)
Testing two versions of a page, email, or ad to see which performs better.
Payment Terms
Payout
The amount you earn per sale or action.
Recurring Commission
Ongoing monthly commissions from subscription‑based products.
One‑Time Commission
A single payment for a single sale.
Net‑30 / Net‑15
How long you wait to get paid.
Net‑30 = paid 30 days after the sale.
Net‑15 = paid 15 days after the sale.
Threshold
The minimum amount you must earn before you can withdraw your commissions.
Rebill
A recurring payment from a subscription — often your most profitable income source.
Refund Rate
The percentage of customers who request refunds.
Chargeback
When a customer disputes a charge with their bank — this can reduce your commission.
Affiliate Marketing Acronyms Explained
CPA
Cost Per Action — you get paid when a user completes a specific action (email signup, form fill, etc.).
CPC
Cost Per Click — how much you pay for each click when running ads.
CPM
Cost Per Mille — cost per 1,000 impressions.
CTR
Click‑Through Rate — percentage of people who click your link after seeing it.
EPC
Earnings Per Click — average amount earned per click you send.
AOV
Average Order Value — the average amount a customer spends per purchase.
LTV
Lifetime Value — how much a customer is worth over their entire relationship with the business.
ROI
Return on Investment — how much profit you make compared to what you spent.
Frequently Asked Questions
What is an affiliate glossary?
It’s a simple list of terms and definitions used in affiliate marketing. Beginners use glossaries to understand the language of the industry faster.
Why is it important to learn affiliate marketing terms?
Because understanding the terminology helps you make better decisions, track your results, and avoid confusion when following tutorials or training.
Do I need to memorize all these terms to get started?
No — you’ll learn them naturally as you take action. This glossary just speeds up the process.
What’s the difference between a lead and a conversion?
A lead is someone who enters their email.
A conversion is when someone completes the action you want — often a purchase.
What is a good conversion rate for beginners?
Anywhere from 1% to 5% is normal. As your skills improve, your conversion rate increases.
How do affiliate programs track my sales?
They use cookies, tracking links, and pixels to credit you for the traffic and sales you generate.
What’s the best payment type for beginners?
Recurring commissions are the most powerful because they pay you every month for work you did once.
How do I know if an affiliate program is legit?
Look for:
- Clear commission structure
- Real support
- Transparent tracking
- Positive reviews
- A real company behind it
Can I do affiliate marketing without a website?
Yes — but having a website gives you more control, more authority, and better long‑term results.
Additional Resources
If you’re choosing your first niche, explore:
- The Most Profitable Affiliate Marketing Niches for Beginners in 2026
- How to Validate an Affiliate Marketing Niche as a Complete Beginner
- How to Choose a Niche for Affiliate Marketing (Beginner‑Friendly 2026 Guide)
- Affiliate Marketing Niches to Avoid in 2026
- How to Choose a Niche for Affiliate Marketing (Beginner‑Friendly Guide)
If you want a smarter long‑term strategy, read the hybrid affiliate model guide.
And if you want to understand the full flow from visitor → lead → sale, see how the affiliate process works.
Frederick Croniser shares practical tips, tools, and resources to help make building income online simpler and more approachable. Through this website, Frederick provides helpful content and recommendations, including the Plug-In Profit Site, a system designed to help beginners get started online with a website, step-by-step training, and built-in income streams. Learn more about getting started with Plug-In Profit Site here.