Here’s a glossary of Internet Marketing terms that you may need to familiarize yourself with. I’ll keep adding more IM terms in the future.
Affiliate Marketer – it’s someone who promotes another persons business and gets rewarded for their successful efforts. Online it’s known as affiliate marketing. All you do is go signup for an affiliate program and you’ll get an unique url for their website. Then you send traffic to the site using your unique url (affiliate link) and you’ll get credited for each sale or lead. Commissions are usually 50% or higher so you can make as much as the actual owner and this is why affiliate marketing is so popular.
Reverse Engineer – I also like to call this process (to deconstruct) or even dissect. For us internet marketers this is the process of taking or looking at something – a website, seo, online methods and etc.. and breaking it down into sections to see how and why it works. i.e. For seo, you Google a site and see it’s on the first page. Then you study and see exactly why the site is on the first page. Look at it’s optimization, page layout, where the links are coming from, how many links and etc. Now you’ve just learned how to compete or even takeout a competitor and you got all the information on how to do this in the shortest amount of time and all in one place. The smart marketers do this for just about everything and then dominate their niches.
Arbitrage – buying low and selling high. It’s when you take advantage of the price differences between 2 or more markets usually with ZERO risk involved or losing money. Example: remember them good ol days when eBay was just getting HOT? You could easily buy discounted electronics somewhere else and sell them on eBay for twice the price – all day everyday. There was no risk involved cause you either sold them on eBay for profit or could return the electronics back to the original seller and get your money back. – risk free profit at zero cost.
Paid to Click (PTC) – get paid a few cents or less for viewing offers and other sites. Also can be a good cheap reliable source of traffic for advertisers and publishers to get traffic to their offers.
Pay Per Click (PPC) – this is a form of paid traffic. You’re only charged whenever someone actually clicks on your contextual or image ad.
Cost Per Milli (CPM) – milli stands for impressions, usually 1000 impressions equals to a milli. This term is used for banner or website impressions for paid traffic.
Angel investor – a single person who has the money and invest in startups and other investments and businesses.
Venture capitalist (VC) – corporations and groups that invest in other businesses and startups.
Solo ads – One of the most effective ways to build your list. You pay the owner of the email list to send your offer, squeeze page down through their list of subscribers. Some of the best sites to meet others with lists; directory of ezines, solo ad directory, safe-swaps. It’s a great way to get targeted traffic for your offer and increase your list with actual interested buyers.
Ad Swaps – you send your offer down someone else’s list and they send an offer down to your list.
One time offer (OTO) – This is an offer you present to someone right after they purchase something from you, and you offer it them at a discounted rate or they’ll have to pay the regular price if they pass.
media buying – a sub function of advertising management, is the procurement of media real estate at optimal placement and price. The main task of media buying lies within the negotiation of price and placement to ensure the best possible value can be secured. Wiki says it best. Basically means looking at all aspects of the media, mostly websites, for places for you to get attention and traffic to your sites. Could be a banner ad placed on a relevant blog, and etc….
ad space – advertising spots on a website. You could sell ad space on your site like a banner, and charge them so much per month to leave their ad on your site.
Virtual Assistant – (VA) is someone who internet and affiliate marketers hire to do tasks for them. They can be someone from a whole nother country, and you actually may never really meet them accept through maybe phone, emails, skype and IM. Hence the word virtual cause it’s almost like they are there in your office or home working for you. Many people like hiring from the other countries (like the Philippines) since they are usually much cheaper and highly skilled and motivated. You can hire them part or full time, or for only certain tasks. VA’s are usually considered free lancers and are used by just about every seasoned internet marketer out there.
Customer Acquisition Costs – the total cost of convincing a person to become a customer and make a purchase of your product or service. This includes the total amount it takes to achieve the final purchase including product costs, marketing, research and etc. How much does it cost to find a customer and how much profit after all the costs to acquire that customer is what it basically comes down to.
Retention – keeping your customers once you get them.
Due Diligence – doing the proper steps in order to fulfill a legal requirement. Like asking questions, researching and knowing all the facts before you make a final transaction whether you’re buying or selling a business or becoming a partner.
Thanks for stopping by and checking out my glossary of internet marketing terms.