Affiliate marketing has its own language. When you start researching tracking platforms, reading affiliate program agreements, or talking to potential partners, you will encounter terms like CPA, EPC, cookie duration, and attribution models — and if you do not know what they mean, you will struggle to make informed decisions about your program.
This glossary covers every key term a business owner needs to understand before launching and managing an affiliate program. It is organized by category so you can find what you need quickly, or read straight through for a complete overview of the affiliate marketing vocabulary.
Core Concepts
These are the foundational terms you will encounter from day one. If you are brand new to the topic, start here before diving into anything else.
Affiliate — A third-party partner who promotes your products or services to their audience in exchange for a commission. Affiliates can be bloggers, content creators, media sites, email marketers, coupon sites, or even other businesses.
Merchant — The business that sells the product or service and runs the affiliate program. Also referred to as the advertiser, brand, or retailer. As the business owner launching a program, this is you.
Affiliate program — The structured system a merchant creates to recruit, track, and pay affiliates for driving conversions. It includes the software, commission structure, terms and conditions, and creative assets. For a deeper look at what goes into building one, our guide on how to create an affiliate marketing program covers the full process.
Affiliate network — A platform that acts as an intermediary between merchants and affiliates. Networks like ShareASale, CJ Affiliate, and Impact handle tracking, payments, and provide a marketplace where affiliates can discover and join programs.
Affiliate link — A unique URL assigned to a specific affiliate that tracks any clicks and conversions they generate. When someone clicks this link and makes a purchase, the sale is attributed to that affiliate.
Affiliate dashboard — The interface affiliates use to access their tracking links, view performance data (clicks, conversions, earnings), download creative assets, and manage their account settings.
Commission Models
These terms define how affiliates get paid. Understanding each model is essential because the one you choose shapes your entire program economics.
CPA (Cost Per Action) — A broad term for any commission model where you pay the affiliate when a specific action is completed. The action can be a sale, a lead, a signup, or any other trackable event you define. CPA is often used interchangeably with Pay Per Sale, but technically it covers any defined action.
CPC (Cost Per Click) — A model where you pay the affiliate for every click they drive to your website, regardless of whether the visitor converts. Less common in affiliate marketing because it does not guarantee results, but used in some brand awareness campaigns.
CPL (Cost Per Lead) — A model where the affiliate earns a commission for each qualified lead they generate, such as a form submission, free trial signup, or demo request. Popular with service businesses and B2B companies where the sales cycle is long and a direct sale through an affiliate link is rare.
PPS (Pay Per Sale) — The most common affiliate commission model. The affiliate earns a percentage of the sale price or a flat fee for every completed purchase they drive. This is the lowest-risk model for the merchant because you only pay when revenue is generated.
Recurring commission — A commission structure where the affiliate continues to earn a percentage of revenue for as long as the customer they referred remains a paying customer. Common with SaaS and subscription products. Attractive to affiliates because it creates ongoing passive income.
Tiered commission — A structure where commission rates increase as an affiliate hits higher performance thresholds. For example, 10% for the first 50 sales per month and 15% for everything above that. Designed to reward and motivate top performers.
Tracking and Attribution
These terms cover the technology and methodology behind tracking affiliate activity and assigning credit for conversions. Understanding how tracking works will help you choose better software and set fairer program rules. For a complete walkthrough of the tracking process, our guide on how affiliate marketing works for businesses explains each step in detail.
Tracking cookie — A small piece of data placed in a visitor’s browser when they click an affiliate link. The cookie stores the affiliate’s ID and allows the tracking software to attribute a sale back to the affiliate even if the visitor does not buy immediately.
Cookie duration (cookie window) — The length of time a tracking cookie remains active after a visitor clicks an affiliate link. If the cookie duration is 30 days and the visitor purchases on day 25, the affiliate still gets credit. Longer cookie windows are more attractive to affiliates. Common durations range from 24 hours to 90 days.
Attribution — The process of determining which affiliate gets credit for a conversion when a customer may have interacted with multiple affiliates or marketing touchpoints before buying.
Last-click attribution — The most common attribution model in affiliate marketing. The affiliate who generated the last click before the conversion receives the full commission, regardless of how many other affiliates the customer interacted with earlier.
First-click attribution — The affiliate who first introduced the customer to your brand receives the full commission, even if the customer later clicked a different affiliate’s link before purchasing. This model rewards affiliates who create awareness.
Multi-touch attribution — A model that splits the commission across all affiliates who contributed to the customer journey. Fairer than single-touch models but more complex to implement and manage.
Server-to-server tracking (postback tracking) — A tracking method where your server communicates directly with the affiliate platform’s server to record conversions. More reliable than cookie-based tracking because it is not affected by ad blockers, browser privacy settings, or cookie restrictions.
Tracking pixel — A small piece of code (usually JavaScript) placed on your conversion page, typically the order confirmation or thank you page. When the page loads, the pixel fires and sends conversion data back to the affiliate tracking platform.
Deep linking — The ability for affiliates to create tracking links that point to specific pages on your website, such as individual product pages or landing pages, rather than just your homepage. This improves conversion rates because visitors land directly on the most relevant content.
Performance Metrics
These are the numbers you will use to evaluate how well your affiliate program is performing and which affiliates are delivering the most value.
Conversion rate — The percentage of clicks on affiliate links that result in a completed conversion. Calculated as conversions divided by total clicks, multiplied by 100. A higher conversion rate means your landing pages and offers are performing well.
EPC (Earnings Per Click) — The average amount earned per click across all affiliate links. Calculated by dividing total commissions by total clicks. Affiliates use this metric to compare the profitability of different programs. A higher EPC makes your program more attractive to quality affiliates.
AOV (Average Order Value) — The average dollar amount of orders placed through affiliate links. A higher AOV means more commission per sale and generally indicates that affiliates are attracting quality buyers rather than bargain hunters.
CTR (Click-Through Rate) — The percentage of people who see an affiliate’s promotional content and click on the affiliate link. A low CTR may indicate that the affiliate’s content or your creative assets need improvement.
ROI (Return on Investment) — The overall return your affiliate program generates relative to the total cost of running it. Calculated as (revenue from affiliate sales minus total program costs) divided by total program costs. This is the ultimate measure of whether your program is worth the investment.
Reversal rate — The percentage of affiliate commissions that are reversed due to refunds, chargebacks, or fraudulent transactions. A high reversal rate may indicate problems with product quality, misleading affiliate promotions, or fraud.
Program Management
These terms relate to the ongoing operations of running an affiliate program — the processes, policies, and tools you will use day to day.
Affiliate agreement (terms and conditions) — The legal document that defines the rules governing the relationship between you and your affiliates. It covers commission rates, payment terms, acceptable promotional methods, brand guidelines, FTC disclosure requirements, and termination clauses.
Creative assets (creatives) — The promotional materials you provide to affiliates for use in their marketing. Common creatives include banner ads, product images, text links, email templates, social media copy, and video clips.
Payout threshold (minimum payout) — The minimum commission amount an affiliate must accumulate before they can request or receive a payment. Common thresholds range from $25 to $100. Setting this too high can discourage new affiliates.
Holdback period (lock period) — The waiting period between when a conversion is recorded and when the commission becomes payable. This protects you against refunds and chargebacks. Typical holdback periods range from 15 to 60 days.
Chargeback (commission clawback) — When a previously approved commission is reversed because the customer returned the product, disputed the charge, or the sale was flagged as fraudulent. Your affiliate agreement should clearly define how chargebacks are handled.
FTC disclosure — A legal requirement in the United States that affiliates must clearly and conspicuously disclose their financial relationship with your brand whenever they promote your products. Failure to enforce this can create legal risk for both you and your affiliates.
Fraud and Compliance
As your program grows, these terms become increasingly important. Knowing what to watch for protects your budget and your brand reputation.
Cookie stuffing — A fraudulent practice where an affiliate secretly places tracking cookies on a user’s browser without their knowledge, attempting to claim credit for sales they did not actually drive. Good tracking software includes detection mechanisms for this.
Click fraud — Generating fake or artificial clicks on affiliate links to inflate traffic metrics or, in CPC programs, to generate unearned commissions. Bots, click farms, and automated scripts are the most common methods.
Self-referral — When an affiliate uses their own tracking link to make a personal purchase, earning a commission on their own transaction. Most affiliate agreements prohibit this practice.
Brand bidding — When an affiliate runs paid search ads targeting your brand name or trademarked terms, effectively hijacking traffic that would have come to you organically. Most programs explicitly prohibit this in their terms.
Affiliate Types
Affiliates are not a monolithic group. Understanding the different types helps you recruit the right partners for your specific program and set appropriate expectations for each.
Content Affiliates
Bloggers, YouTubers, podcasters, and journalists who create original content — reviews, tutorials, comparisons — and embed affiliate links within it. They drive high-quality, intent-driven traffic through search and social channels.
Coupon and Deal Affiliates
Websites that aggregate discount codes, deals, and promotions. They drive high-volume traffic from price-sensitive shoppers. Tend to have higher conversion rates but may attract lower-value customers.
Email Affiliates
Partners with established email lists who promote your products through newsletter recommendations and dedicated email campaigns. Effective for reaching engaged audiences who have opted in to receive product recommendations.
Comparison and Review Sites
Dedicated sites that compare products within a category, such as “best project management tools” or “top CRM software.” These affiliates capture high-intent search traffic from buyers who are ready to make a decision.
Loyalty and Cashback Sites
Platforms that pass a portion of the affiliate commission back to the consumer as cashback or reward points. They drive volume but the traffic is primarily motivated by the discount, not by brand preference.
Super Affiliates
High-performing affiliates who generate significantly more volume than the average partner. They typically have large audiences, sophisticated marketing operations, and negotiate premium commission rates or exclusive deals.
Promotion and Strategy Terms
These terms come up when you are planning how to grow and optimize your affiliate program over time.
Affiliate recruitment — The ongoing process of finding, vetting, and onboarding new affiliates into your program. Active recruitment through outreach, directories, and networking is far more effective than passively waiting for affiliates to find you.
Onboarding — The process of getting a newly approved affiliate up to speed on your program. Effective onboarding includes a welcome guide, access to creative assets, product information, and clear instructions on how to generate links and track their performance.
Link cloaking — The practice of disguising long, complex affiliate tracking URLs behind shorter, cleaner links. For example, turning “yourstore.com/?ref=aff123&campaign=spring” into “blogname.com/recommends/yourstore.” Cloaked links look more professional and can increase click-through rates.
Landing page — The specific page on your website where affiliate traffic is directed after clicking a link. A well-optimized landing page is critical because no matter how much traffic your affiliates send, conversions happen on your site, not theirs.
Two-tier affiliate program — A program structure where affiliates earn commissions not only on their own sales but also on sales generated by affiliates they recruit into the program. The recruiting affiliate earns a smaller secondary commission on their sub-affiliates’ performance.
Affiliate manager (OPM) — The person responsible for running your affiliate program day to day. OPM stands for Outsourced Program Management and refers to hiring an external agency or specialist to manage your program on your behalf, as opposed to handling it in-house.
Keep This Glossary Handy
You do not need to memorize every term before getting started. But as you set up your program, recruit affiliates, and start analyzing performance reports, you will encounter these concepts regularly. Having a clear understanding of the vocabulary helps you make better decisions at every stage — from choosing software to negotiating with partners to optimizing your commission structure.
If you are still building your foundational understanding of how this channel works, our guide on what affiliate marketing is for businesses provides the complete overview. And when you are ready to put these terms into practice, the step-by-step process for building your program from scratch is covered in our complete affiliate marketing program guide.
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