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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.

The act of showing an advertisement to a user. There can be several impressions shown on one page (if there is more than one ad unit on the page).

Pageview  – The amount of pages that a user views when on a website.

The amount of revenue generated from a web site or a web page. For example “You can monetize this website in several different ways”.

SEM (Search Engine Marketing)
This is the practice of purchasing keywords from a search engine such as Google or Yahoo! Advertisers pay in exchange for preferential placement in search engine results.

SEO (Search Engine Optimization)
This is the practice of optimization of a web site for certain keywords so when users ping search engines, a web publishers results come back above other results. Search Engine Optimization has no cost to the web publisher, although advisory services are available from SEO experts.

Traffic Exchange
Can take the form of any exchange of traffic on the Internet including, link exchanges, banner exchanges, photo exchanges, etc. The basic premise is that you send a user away from your site in exchange for receiving a user at a later time period. If you can control when the user moves away from your website, traffic exchanges can be great tools (opposed to just loosing the user to another website, you can control where they go to and receive a user back). When entering into a traffic exchange always be on notice as their are several dishonest traffic exchange providers out there. Click here for a traffic exchange provider for blogs. Here is a post on two services that can help to boost your traffic.