Affiliate Marketing Affiliate Marketing 2 — Questions and Answers
Question 1: What does 'cookie duration' mean in affiliate marketing?
- The time an affiliate link stays active on a network
- The length of time a tracking cookie follows a referred visitor before it expires (Correct answer)
- How long an affiliate program has been running
- The period during which affiliates can request payouts
Correct answer: The length of time a tracking cookie follows a referred visitor before it expires
Cookie duration is the window of time after a click during which a referred visitor's purchase will still be credited to the affiliate.
Question 2: Which metric measures the percentage of clicks that result in a desired action (such as a sale)?
- CTR (Click-Through Rate)
- EPC (Earnings Per Click)
- CR (Conversion Rate) (Correct answer)
- RPM (Revenue Per Mille)
Correct answer: CR (Conversion Rate)
Conversion Rate (CR) is calculated by dividing the number of conversions by the total number of clicks and multiplying by 100.
Question 3: An affiliate promotes a SaaS product and earns a commission every month a customer stays subscribed. This model is called:
- CPA (Cost Per Acquisition)
- Recurring commission (Correct answer)
- Pay-Per-Lead
- Tiered commission
Correct answer: Recurring commission
Recurring commissions pay affiliates repeatedly for each billing cycle as long as the referred customer remains active.
Question 4: What is a 'super affiliate'?
- An affiliate who promotes more than 10 programs simultaneously
- A high-performing affiliate who drives significantly more sales than average affiliates (Correct answer)
- An affiliate with verified social media credentials
- An affiliate who manages other affiliates in a network
Correct answer: A high-performing affiliate who drives significantly more sales than average affiliates
A super affiliate is a top-tier affiliate marketer who generates a disproportionately large share of a program's revenue.
Question 5: Which FTC guideline is most directly applicable to affiliate marketers in the US?
- Affiliates must disclose their relationship with merchants when promoting products (Correct answer)
- Affiliates must register as licensed advertisers
- Affiliates must limit promotions to a single platform
- Affiliates must obtain written consent from every referred customer
Correct answer: Affiliates must disclose their relationship with merchants when promoting products
The FTC requires affiliates to clearly disclose any material connection to a brand, including receiving commissions, so audiences can evaluate recommendations objectively.
Question 6: What is the primary advantage of a two-tier affiliate program for a merchant?
- It eliminates the need for affiliate tracking software
- It incentivizes affiliates to recruit other affiliates, expanding the network organically (Correct answer)
- It allows merchants to pay affiliates with store credit instead of cash
- It lets merchants avoid paying commissions on repeat purchases
Correct answer: It incentivizes affiliates to recruit other affiliates, expanding the network organically
Two-tier programs reward affiliates for recruiting sub-affiliates, effectively turning top affiliates into unpaid recruiters who grow the merchant's affiliate base.
Question 7: An affiliate notices their EPC suddenly dropped by 50% without a change in traffic volume. What is the most likely cause?
- The affiliate network changed its tracking domain
- The merchant changed the commission structure or the landing page's conversion rate dropped (Correct answer)
- The affiliate's social media following decreased
- Cookie duration was extended by the merchant
Correct answer: The merchant changed the commission structure or the landing page's conversion rate dropped
A sharp EPC decline with stable traffic typically signals a lower commission rate or a deteriorating conversion rate on the merchant's end.
Affiliate Marketing Affiliate Marketing 2
What does 'cookie duration' mean in affiliate marketing?