10 Metrics Typical for Affiliate Marketing

10 Metrics Typical for affiliate marketing

 

This blog post belongs to series about affiliate marketing, created by clickBakers team to help affiliates and affiliate marketers better understand the complicated world of affiliates as well as the importance of affiliate tracking software on the successful journey to commissions. Today we look at the 10 metrics typical for affiliate networks.

 

A List of 10 Metrics Typical for Affiliate Marketing

Clicks/CTRs

Click-throughs – unique clicks sent by affiliates, i.e. how many users clicked on affiliate links placed and landed on merchant’s offer. The main goal of affiliate activities is to lead users to click on the buy/register button.

CTR

Click Through Rate – A ratio comparing viewers, to those who have clicked on an advertisement. The goal is to increase the likelihood that users who come across an affiliate link click on it.

Impressions

A metric reflects how many times a user sees an affiliate link placed within an advertisement. Comparing impressions to other metrics, affiliates can evaluate the effectiveness of their advertisements.

Traffic/Visitors

A number of users/visitors visiting affiliate website/blog/social media page. The greater the traffic, the higher chance an affiliate has to send visitors to a merchant’s website and convert them. Affiliates focus on producing high-quality content and thus attracting a significant number of visitors to their sites.

Affiliate Commission Ratio

The amount received by an affiliate/publisher for generating a sale or a lead for an advertiser. Affiliates always gravitate toward offers that provide the most per conversion/ higher commission. But they should also take into account the likelihood of conversions, i.e. how attractive product/service is for customers.

Gravity

High gravity of a product means a lot of affiliates make money selling this product. This metric simply shows how hot a product is at the moment.

Refunds

This metrics shows how many commissions an affiliate loses in case of a refund from a customer coming from an affiliate link. Refunds are commonly handled by the merchants.

Reversal Rate

Measures the percentage of reversed commissions by a merchant usually because of a disapproval. A good rule of thumb for affiliates is to avoid merchants with the high Reversal rate.

Active Affiliate Ratio 

This metrics is useful especially for affiliate managers. It shows how many affiliates/publishers inside a network are actually active on a regular basis and perform.

Commission Models

Affiliate programs follow different commission models. Related metrics are:
CPS – Cost Per Sale
The most popular of the commission models. An advertiser pays the publisher a percentage or agreed upon fee for the sale of a product or service. Also, know as CPO – Cost per Order

CPA – Cost Per Action 
This model pays for specific actions such as form submissions, downloads, surveys. Also known as CPI – Cost per Install, CPF – Cost per Form, CPD – Cost per Download

CPL – Cost Per Lead
The model pays for leads usually, a “signup” that involves email or credit card verification

If you are looking for another source to learn more about Affiliate marketing, here are our tips:
A few tips for affiliate marketing success
A Guide to Affiliate Marketing – Core Players

 

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