The technique of purchasing cheap traffic and driving it to a landing page optimized for displaying expensive Adsense ads. Here’s a quick example to illustrate this further: Someone purchases inexpensive pay-per-click traffic centering around the keyword ‘inexpensive toys’ for a mere 7 cents per click. The ads in this campaign direct a user to a website (eg: expensivetoys.com) that displays Adsense ads targeting a more high-paying keyword such as ‘expensive toys’ for 7 dollars per click. If even a fraction of users landing on this site click on the ads, the owner stands to generate a reasonable profit, as he will have earned more than he had spent.

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Denotes the percentage of the sales price an affiliate earns if a customer referred by him goes on to purchase a product/service via his link. Affiliate commissions vary greatly, depending on the type of product/service being sold. For example, you can expect to earn between 25% and 75% commission on downloadable digital items such as ebooks or software. In some instances, you may even get paid 100% in commission direct to your PayPal account! As for physical products, commissions usually range from 4% – 15%, mostly because these items need to be manufactured offline, stored and then shipped. That’s not to say you’ll earn more promoting digital items; selling physical products via your affiliate link can easily add up if they are high-ticket items. For instance, it would be better to promote a vacuum cleaner priced at $500 with an 8% commission (you’d pull in $40) than it would be to promote a $47 ebook with a 50% commission (you’d earn $23.5).

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Also known as ‘ACT’ (ad click through), this simply refers to the number of times your ad was clicked on by potential customers.

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Refers to a set of advertisements within a single campaign. The term also has a very specific meaning when used in context with pay-per-click advertising models on search engines such as Google and Microsoft Bing.

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The number of times an ad is displayed on a user’s screen. If for some reason, a user does not view the ad (for eg: it might be placed at the bottom of a web page), a single impression is still counted. Another point worth noting is that more often than not, advertising is sold and paid for based on the number of ad impressions being offered.

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Run by search engine giant Google since 2004, the Adsense program enables website owners from all over the world to profit from their content by publishing relevant ads pulled from the Google Adwords system (big G’s pay-per-click platform for advertisers) on their pages and generating an income if visitors click on the ads.

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Google’s paid program for website owners wanting to advertise their products and services to the search engine’s massive user base. The platform allows advertisers to determine the exact keyword phrases he wants his ad to be shown for, as well as the maximum fee he’s willing to pay for each click. And every time someone clicks on their ad, the advertiser pays Google this fee. Furthermore, the position of his ad in the search results is based on the number of advertisers bidding on the same keyword and how much they are willing to pay per click.

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A 3rd party that promotes and markets a vendor’s products or services. An affiliate is paid a commission (either a flat fee or a percentage of the sale) each time a user purchases the merchant’s product via his affiliate link.

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A unique link provided to the affiliate by the merchant to promote a product or service. This link contains the name/user id of the affiliate and is used to keep track of all the sales he generates, so commissions can be paid out accordingly.

Here’s an example of an affiliate link: expensivetoys.com/userid=joe176

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