The below is an extract of what I've posted in our VIP Lounge:
Glossary of Online Business Terms
Affiliate A person or business who sells products and services on behalf of merchants. The merchant provides a code, known as an affiliate link, which the affiliate then places on their website. It enables the merchant to track transactions which result from the affiliate's site and pay commission according to a pre-set agreement.
Affiliate marketing A means of monetising a website. The affiliate promotes the merchant's products by various means, including product reviews or by simply adding a merchant's banner to their website, together with an affiliate link.
Backlinks Links to your site from other websites. They can be important because search engines (SE) use the number of good quality backlinks as part of their algorithm to assess a website's authority or usefulness. This in turn pushes the website into a more prominent position in the SE and should therefore result in more traffic to that website.
Bounce rate The percentage of visitors who leave the website after viewing a single page. An important aspect of analysing the value of a website's traffic.
Click fraud (also known as PPC fraud) A method of defrauding pay-per-click (PPC) advertisers. Some webmasters hire low-paid workers, or even use bots, to click on adverts on their own site. The webmaster then charges the advertiser for those clicks, even though there was never any prospect of them generating sales. Most PPC programmes have strict controls to prevent click fraud.
Click-through rate (CTR) The number of times an ad is clicked on divided by the number of times the ad is shown, expressed as a percentage. CTR is often used as a measure of success of online promotions.
Conversion rate The number of website visitors who convert into customers, usually expressed as a percentage. There are various methods to improve a website's conversion rate; analysing traffic is a useful way of identifying the methods most likely to succeed.
Cost-per-action (CPA) A payment model used in online advertising where payment is based on the visitor performing qualifying actions such as registering for or requesting something.
Cost-per-click (CPC) In pay-per-click advertising programmes, a measurement of how much each click costs the advertiser.
Domain name This is your address on the Web, eg MySite.com. To purchase a domain, you will need the services of a domain registrar. An important consideration is the best choice of top level domain (TLD); the generic TLDs such as .com, .net, .org are popular, but country code top level domains (ccTLDs) such as .co.uk., .com.au, .ca can also be good choices for businesses with a particular geographic focus.
Duplicate content This refers to content on a website which is not unique, ie the same content is published on several websites. It can be of importance for search engine optimisation (SEO), because some search engines devalue the worth of duplicate content.
Earnings per click (EPC) A performance measure used in Internet marketing to determine the success of a website in generating revenue for its owner.
Exact-match domain (EMD) A term used to describe a domain which includes the exact keywords which the website is intended to target. For example, if the website is intended to sell bobble hats, then bobblehat.com would be a good EMD.
Flipping Buying a website cheaply, preferably one which is undervalued, improving it and selling it for a profit. Domains can also be flipped. The concept is similar buy cheap, sell for a profit.
Free traffic (organic traffic) Some traffic has to be paid for, such as advertising campaigns. Other traffic is free. It refers to traffic which a website gets from ranking well in the search engines, or from backlinks.
Google AdSense A scheme for website owners to make money by displaying advertising. Website owners (publishers) insert code onto their websites, enabling them to display blocks of ads (ad units). Google delivers targeted ads into these ad units, and the publisher receives a payment each time an ad is clicked on (and, in some cases, for each time an ad is displayed).
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