As any other field of human activity affiliate industry contains many terms you should understand and use to successfully act as an IB. We gathered all essential definitions of such terms so you may refer to this glossary anytime you need to interpret something for yourself. There are a few sections of terms and we will probably expand and update it from time to time though we do not state this Affiliate Programs Glossary to be complete. Contact us with questions or proposals if you cannot find some important term here or reckon that something should be added to the glossary.
Affiliate Program – popular method of promoting business that is allocated mostly online. In Forex, affiliate programs are widely used for gaining new clients by the brokerage company. Most work for searching new customers is done by affiliates – so called Introducing Brokers or Agents.
Introducing Broker (Agent) or IB – person or firm that participates in the affiliate (partnership) program and introduces particular broker services. IBs attract new clients by means of advertising on their sites and using other various methods of online and offline advertising.
Referral Link – link that contains unique code assigned to every IB (referrer). Applying this link a referrer can send potential clients to the broker’s site as his referral and this is the only way to refer such clients online. Giving every affiliate partner a unique URL, brokers can track who comes to their site from partner sites and other online sources where partners allocate this URL.
Referrer (IB) – affiliate or so called partner who participate in the affiliate program and refer other potential traders and partners to the broker’s site. Visitors attracted in such way are called referrals.
Referral – person attracted to the broker’s site by means of the referral link placed somewhere (on any site, blog, forum, social network, etc.) by the referrer. Referrals can also be attracted offline – in such cases he put in the referrer’s code while registering his trading account.
Unique Referrer’s Code – unique affiliate’s ID that is used to track customers referred by a particular IB. It may be used to anchor customers under a certain IB while offline introducing – every client may enter this code while registering his trading account.
Multi Tier (Level) Affiliate Program – program type according to which affiliates can earn commissions not only from their direct first tier referrers, but also from the referrers of their referrers – second tier and so on up to 5 tiers.
Partner (Affiliate) Website – a website that usually contains promo materials and is used by the IB to attract new referrers to the site of the broker he represents. Such sites must meet the requirements of a particular broker affiliate program and be approved by the broker’s affiliate department.
IB (affiliate) Status – some kind of a rank on which revenue percentage usually depend. The higher status IB obtains the higher revenue he gets from his referrers. As a method of encouragement brokers confer their IBs higher statuses for bringing particular amount of clients on each stage. Requirements for gaining every status are determined in the affiliate conditions exposed on a proper section of the broker’s site.
Revenue Scheme – a model according to which an IB gets his reward for bringing new clients to the broker. Same brokers may offer different options of earning to their partners; revenue schemes may vary depending on the IB status.
Percentage from Revenue Scheme – scheme in which an IB earns a revenue share of the broker’s profit gained from IB’s referrals. According to such revenue model an IB gets his commissions from the same referrer as long as this referrer uses services of the broker.
Cost-Per-Action Scheme (CPA) – a scheme according to which an IB gets an instant payment for every client depositing some funds to the brokerage company. Due to this scheme an IB get his commission only once (usually for depositing every new account).
Members or Partners Area (Back-Office) – online environment specially developed for affiliate partners of different kind to help them in their job. Such areas contain private promo materials, guides, statistics and other marketing and financial data specially developed for a particular IB.
Advertising and Website Promotion
Affiliate (Partner) Website – site that IBs use to attract new clients (referrers). Any site should be approved by the Broker’s partnership department as it must meet the requirements defined in the affiliate program conditions.
SEO – an abbreviation that stands for the Search Engine Optimization. It is a set of methods that are usually applied to the whole site and helps in gaining higher ranks according to various search algorithms. SEO is very important for those who wish take high places in search result of Google, Yahoo, MSN, Yandex and other search engines.
Promotional (Promo) Materials – various materials like text links, graphic banners, promo articles and widgets IBs can use on their and others’ sites to promote the broker’s services. Promo materials are also called webmaster tools – they can be found in the IB’s Back-Office and always contains referral.
Text Ad – simple ad that usually consists of a heading line, few body lines and a referral link. Can be used to attract new customers via advertising platform as Google AdWords or be placed on a partner site.
Promo Article – advertising article that contains referral links and is usually based on review of the particular broker’s advantages and features. It may be placed on the affiliate website or elsewhere in the web.
Widget – a small web-application that is installed and executed on a web-page. In Forex affiliate marketing widgets are part of webmaster tools (promo materials) that are fully supported by the broker and can perform some useful functions or display useful information (various Forex charts, broker’s videos, trading signals, currency pair converters and so on).
Google PageRank (PR) – a link analysis algorithm used by Google search engine that assigns marks from 0 to 10 to every site page depending on the “page weight”. The more qualified backlinks appears in the web the higher page weight value becomes. Note that PR depends on other factors too, but nobody know what exactly as the algorithm is kept in secret.
Unique Visitors – a characteristic that represents the quantity of unduplicated (counted only once) visitors to the website over the course of a specified time frame. Unique visitor are defined with the help of cookies.
HTML Tags – webpage elements which are considered as the basic building-blocks of any webpage. Go to Wikipedia for detailed definitions and examples.
Sitemap – a list of website pages accessible to crawlers or users. It is a file, that lists all the significant site pages and helps search engine bots find pages on the IB website. For details go to sitemaps.org
Web-Directories – categorized listings specially designed to gather and expose specified URLs. Most web-directories are moderated, that means your link can appear in certain listing after approval which can take up to few months.
Documents and Verification
IB Agreement – kind of agreement required to be fulfilled, manually signed and submitted for gaining the IB status. To become an IB the one usually have to fulfill both IB and Client Agreement and sometimes also other documents the list of which depends on the particular brokerage firm.
Disclaimer – a decree that officially denies legal claim and refuse from particular liability. In brokerage market, disclaimer is a statement applied by the broker to free himself from a particular responsibility.
Risk Disclosure – in brokerage market it is a document or statement (often included into the IB or Client Agreement) that emphasize the risks involved in trading on financial markets, such as that one may partly or entirely lose his/her investment.
Copyright – a set of exclusive rights granted by a state to the creator of any unique labor (e.g. article or any other type of web content). In the whole it protects the physical expression of any ideas.
ID (Passport) Verification – one of the most important verification procedures usually required for gaining higher IB status. To perform such procedure an IB is asked to send a scanned copy of his ID (passport, driving license, etc.) to the broker representative.
Account Number – unique number that is assigned to every trading account. One trader can have multiple accounts and each of them always has its unique digital number. It is often used as a login to the broker’s web-site.
Definitions exposed in this affiliate programs glossary are used to explain terms related to Forex partnership programs and are composed using various sources. Feel free to contact us in case of any misunderstandings, mistakes or if you consider some of this content to be misleading or false. We will gladly examine all your reprimands and offers regarding the above-mentioned statements and definitions.