Industry Definitions used in Home Business
When you are starting out in a home business industry jargon and a lack of resources to convert this seemingly covert language into layman’s terms can lead to confusion, frustration and occasionally people give up before they even get started because of this. Fact is those of us doing this business for a few years to a decade plus like me, have a tough time remembering what it was like to be a newbie starting out in online marketing with our first home business opportunity.
So here is a list of some terms to help you on your way and be sure to ask in the comments about any others we don’t cover.
WAHM – Work at Home Mom
PPC – Pay Per Click. A click is a mouse click on an advertisement such as Adsense that in turn pays a sum of money offered by the advertiser.
PPA or CPA – Both Pay Per Action and Cost Per Action refer to a form of advertising where the advertiser pays for an action such as filling out a form, joining a mailing list, or getting a free account.
Affiliate – A online marketer or home business owner who offers the products of others for sale in return for a commission when the product sells.
Commission – A commission is a percentage or flat fee paid as a reward for referring a sale.
Referral – When you send someone to view a sales page and they buy/join the product or program.
Network Marketing – A system that no only awards affiliate commissions for personally referred sales but also allows you to refer other affiliates and earn income when they make a sale as well.
MLM or Multi Level Marketing – The core difference between MLM and Network Marketing is that with MLM you agree to a set minimum purchase each month of product and the focus of the program is recruiting other buyers willing to join the auto-ship program. MLM done wrong can quickly turn into what is called a ponzi scam when the program focuses too much on selling the business opportunity instead of the product, requires purchase of more product than can be personally used in a month’s time, or demands a price for the product well above it’s realistic retail value.
Ponzi Scam – A Cash for Cash program where no product of real value is offered or product is not the focus of the program and sales of product do not generate the commissions of the program participant. A Ponzi Scam also known as a HYIP or High Yield Investment Pool, Cycler, or Cash Gifting program depends on people buying into the sale’s funnel and referring more business opportunity seekers regardless of product or value creating a unrealistic expectation of earnings. Sorry 9.5 of every 10 programs offering $10,000 in 30 days or I made $3,000 over night etc.. are Ponzi scams and have a very short shelf life because eventually they run out of new victims and thousands will earn nothing or even lose money.
Banner – A graphic or picture advertisement.
Autoresponder – An email software that will send automatic messages at specific times to anyone who has subscribed to a double opt in mailing list.
Double Opt In Mailing List – A process where the list subscriber must first fill out a form requesting commercial e-mails from the sender and then must click a confirmation link sent to their registered e-mail address to confirm that it is really them asking to subscribe and receive these commercial e-mails.
Opt Out Mechanism – A link or action inside a commercial e-mail that allows a person receiving the e-mail to have their e-mail address removed from the sender’s mailing list. One is required in all commercial mailings and once the unsubscribe process has been completed you must stop sending commercial mails to the party who opted out.
SPLOG – A weblog or blog if you will that is compile of Advertisements or links and offers no content of value to the reader. If your blog is noting but advertisement after advertisement or you blog only to build inbound links for search engine marketing you are likely a sploggers and may see your site blocked or penalized by major search engines.
SPAM – Unsolicited commercial communications including but not limited to E-mail messages, SPAM blog comments, SPAM Groups, Messenger SPAM, Chat box SPAM, Forum SPAM, and Search Engine SPAM such as scraped content mini sites and splog networks. If communications are commercial in nature and delivered digitally there must be a provable existing business relationship, the contact must not be prohibited by the website it takes place on, and there must be a means for the receiving party to opt in and opt out of the contact. Examples of Blog and forum spam include commercial advertisements in the place of post or legitimate comments. Or commenting with the sole intent of leaving a link back to your own website or program without adding real value to the conversation.
WARNING!!! Those Facebook Groups with names like, “Advertise Here” are in direct violation of Facebook’s terms of service. Using them for non approved content such as commercial advertising is not just grounds for account termination but has also resulted in people facing massive fines and jail time. Facebook is famous for making an example of one Canadian SPAMMER, when all was done he faced over $1 million dollars in fines and over 30 years in prison. Don’t let that be you!