Making Money Online, Terms Introduction

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Understanding the TERMS

Well, you have to agree that to understand how to make money online, you have to know the rules and the terms. So my first step is to understand the terms first. I did some research and find this at cwire. Hopefully it will help Beginner Blogger like me.

CPA (cost per action)
Advertisers pay once an action that has been previously defined occurs. Depending on the action, this can be the riskiest for a publisher and holds the least amount of risk for the advertiser (since it knows exactly what it is paying for and only pays for specific actions). Commission Junction connects advertisers and web publishers together and provide a platform for them to interact on a CPA basis.

CPC (cost per click)
Advertisers only pay when a user clicks on an ad. CPC campaigns shift risk to the publisher, as the publisher only receives payment when a user clicks on an advertisement. A publisher may have to show millions of impressions without receiving payment if users do not click on the advertisement. An example of a good CPC campaign is Google’s Adsense or Bidvertiser or Ad Brite. .

CPL (cost per lead) – See CPA definition.

CPM (cost per thousand)
The most basic way of measuring internet display advertising. Advertisers purchase impressions from publishers and pay on a “per thousand” basis. For example an advertiser may purchase 1,000,000 ad impressions at a $10 CPM, the total ad buy would be for $10,000. CPM campaigns benefit the publisher the most, as they have no risk, all of the risk lies with the advertiser (they are paying regardless of whether or not an action by a user occurs). An example of a network that pays affiliates on a CPM basis is Ad Brite.

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