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
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.
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.
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.
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.
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.
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.
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.
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
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