Making money online terminology
The following are terms used in the online money making world. Know them.
- Affiliate - An individual that promotes a company's product on their own website or somewhere else on the internet and earns a commission for every sale they make.
- Affiliate Marketing - The system by which a company's products are promoted and sold by individuals (affiliates) who earn a commision for every sale they make.
- CPA - Cost Per Action. A user clicks on an ad on a site, is taken to the advertisers site and ends up performing some action such as signing up for a trial membership or requesting information for something in the mail. The advertiser pays a set fee for each of these actions.
- CPC - Cost Per Click. Refers to how much an advertiser will pay for every time their ad is clicked on a webpage. CPC can vary greatly. You can pay 5 cents for a click on ad or 5 dollars for a click on another ad, for example.
- CPM - Cost Per Thousand Impressions (M is the Roman numeral for 1,000). Refers to how much an advertiser will pay for every 1000 times their ad is viewed on a webpage.
- CTR - Click Through Rate. A percentage that refers to the number of times an ad has been clicked out of the number of times it has been viewed. Example: an ad is viewed 500 times and it is clicked 25 times, the CTR is 5 percent.
- Monetization - The process by which you turn a regular website into a money making website. If you run a website that makes you no money and you add a few ads and then a few weeks later you are generating a weekly profit then you have monetized your website.
- Niche - A specific portion of a broad market that can be targeted based on certain demands. Example: books is a broad market, while computer programming books for beginners is a niche. Niche's are a very important concept in Affiliate Marketing.
- SEM - Search Engine Marketing. The practice of promoting websites by including them in paid advertisements on search engines that appear on the top or the right side of search engine result pages.
- SEO - Search Engine Optimization. The process by which websites are altered in certain ways so that they receive higher search engine rankings (ideally the #1 spot). SEO involves things like setting a relevant title for the page, using keywords in text links, and adding new content on a regular basis.
