ADSSystem

Marketplace, Affiliate and Partner Economics glossary

In one line

95 terms from Marketplace, Affiliate and Partner Economics, each defined in a sentence or two, with a link to the calculator that works the number out where one exists.

A27
ACoS

Advertising cost of sale. Ad spend divided by the revenue those ads produced, expressed as a percentage. It is ROAS inverted, and the two say the same thing in opposite directions.

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Affiliate Advertiser

The brand paying for results.

Affiliate CAC

Acquisition cost through the affiliate channel.

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Affiliate Click

A click through a tracked partner link.

Affiliate Commission

The same, from the advertiser point of view. A variable cost, so it belongs inside contribution margin.

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Affiliate Conversion Rate

Conversion rate on affiliate traffic.

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Affiliate Deduplication

Stopping affiliates claiming sales another channel already produced.

Affiliate Economics

Whether the commission you pay leaves enough margin after everything else.

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Affiliate EPC

Earnings per hundred clicks, the metric publishers judge you on.

Affiliate Fraud

Any scheme claiming commission for results that were not produced.

Affiliate Impression

An ad view on a partner property.

Affiliate Lead

A lead attributed to a partner.

Affiliate LTV

Lifetime value of customers arriving through affiliates. Often lower, especially from coupon sites.

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Affiliate Margin

What is left after commission.

Affiliate Marketing

Paying partners a commission for sales or leads they send you.

Affiliate Network

A middleman connecting advertisers with publishers and handling tracking and payment.

Affiliate Order

The order itself, as recorded in the network.

Affiliate Partner

Either side of that relationship, depending on who is speaking.

Affiliate Payout

What you actually pay out after reversals.

Affiliate Publisher

The partner sending the traffic.

Affiliate Revenue

Revenue attributed to the affiliate channel.

Affiliate ROAS

Revenue over commission paid. Looks excellent, and ignores incrementality.

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Affiliate ROI

Return on affiliate spend after commission and margin.

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Affiliate Sale

A sale attributed to a partner.

Affiliate Tier

The same in affiliate programmes.

Affiliate Tracking

How a click is connected to a later sale.

Approval Rate

The share of submitted conversions the advertiser accepts.

Attribution Override

A rule forcing credit to one channel regardless of the path.

B1
Brand Bidding

Partners bidding on your brand name and claiming credit for demand you created.

C14
Break-Even ACoS

The advertising cost of sale at which a sale contributes nothing and costs nothing. It equals your contribution margin percentage, and spending above it buys volume at a loss.

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Channel Conflict

Two channels competing for the same customer and both charging you.

Chargeback Rate

The share of transactions disputed by the cardholder.

Click Fraud

Automated or fake clicks generated to earn payment or drain a competitor budget.

Click Injection

Firing a fake click at install time on mobile to steal attribution.

Commission Cap

A ceiling on what a partner can earn per sale.

Commission Floor

A minimum payout per result.

Conversion Fraud

Faked or hijacked conversions.

Coupon Attribution

Crediting a sale to whoever supplied the discount code.

Coupon Cannibalization

Coupon sites taking commission on sales that were already happening. The oldest problem in affiliate.

Coupon Code Attribution

The same mechanism, spelled out.

CPA Commission

Payment per acquisition.

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CPL Commission

Payment per lead delivered.

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CPS Commission

Payment per sale, usually a percentage of order value.

D1
E4
Earnings Per Click

What a publisher makes per click sent. Your offer competes against every other offer on their site.

Earnings Per Lead

What a publisher makes per lead delivered.

Earnings Per Sale

What a publisher makes per completed sale.

EPC

Short for earnings per click.

F2
First Click Affiliate

Crediting the partner who introduced the customer. Favours content sites.

Flat Commission

One rate regardless of volume or product.

G2
GMV

Short for gross merchandise value. A scale number, not a revenue number.

Gross Merchandise Value

Total value of goods sold through a marketplace, before fees and returns.

H1
Hybrid Commission

A mix of fixed fee and revenue share.

I3
Incremental Affiliate Profit

The same after commission and margin. The only number worth managing to.

Incremental Affiliate Revenue

Affiliate revenue that would not have arrived otherwise. Always lower than attributed revenue.

Incremental Partner Revenue

Genuinely new revenue from a partnership.

L2
Last Click Affiliate

Crediting the final partner touch. Favours coupon sites that appear at checkout.

Lead Fraud

Fabricated or recycled contact details submitted as leads.

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M3
Marketplace AOV

Average order value on a marketplace. Often lower, because comparison is easier.

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Marketplace Conversion Rate

Conversion rate on marketplace traffic, usually higher than on your own site because intent is stronger.

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Marketplace Margin

What is left after marketplace fees, fulfilment and advertising. Frequently thinner than sellers expect.

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N4
Net Merchandise Value

GMV after returns and cancellations.

Network Fee

What the network charges on top of commission, usually a percentage of payout.

New Customer Bonus

A higher rate for genuinely new customers. The cleanest fix for coupon cannibalisation.

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NMV

Short for net merchandise value. Closer to reality than GMV.

P15
Partner Acquisition Cost

What it costs to recruit and onboard a partner.

Partner Cannibalization

A partner taking credit for sales another channel already produced.

Partner Channel Mix

The balance between content sites, coupon sites, loyalty apps and creators.

Partner Deduplication

The same across all partner types.

Partner LTV

Total contribution a partner produces over the relationship.

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Partner Margin

Margin on business coming through partners.

Partner Payout

The same for non-affiliate partnerships.

Partner Profitability

Whether a partner earns more than they cost to support.

Partner Tier

A grouping used to set commission or support level.

Performance Bonus

Extra payment for exceeding quality or conversion targets.

Postback

A server call confirming a conversion back to the partner.

Publisher Commission

What the partner earns per result.

Publisher Conversion Rate

The same measured per publisher. The spread between publishers is usually enormous.

Publisher Margin

What the publisher keeps after their own costs.

Publisher Quality

How good the traffic from a given publisher actually is.

R3
Retention Bonus

Payment tied to customers staying rather than just buying once.

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Reversal Rate

The share later cancelled, usually for returns or fraud.

RevShare

A share of the revenue rather than a fixed fee.

S3
S2S Tracking

Server-to-server tracking, independent of the browser.

Server-to-Server Tracking

The full term. Survives cookie loss and ad blockers.

SubID

A parameter partners use to label their own traffic sources. Essential for spotting which sub-source is fraudulent.

T6
TACoS

Total advertising cost of sale. Ad spend measured against total revenue rather than only ad-attributed revenue, which shows whether paid activity is lifting organic sales or replacing them.

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Tiered Commission

Rates that rise with volume. Aligns incentives, and squeezes margin exactly when volume is highest.

Tracking Fee

A charge for the tracking infrastructure itself.

Tracking Parameter

A value carried in the URL so a conversion can be traced back.

Trademark Bidding

The same, described in the contract clause that forbids it.

Traffic Quality

Whether the visitors behave like real prospects.

Traffic Validation

Checking traffic for bots and fraud before paying for it.

V1
Volume Bonus

Extra payment for hitting a volume threshold.