This document provides definitions for over 100 business and financial terms, including: - 3rd party - A service provider or partner that is not wholly owned. - AOV – Average Order Value - The average value per order over a period of time. - AR – Accounts Receivable - The department responsible for ensuring all funds owed are received. - Attrition Rate - The rate customers cancel recurring billing or abandon a product/service. - Cash Flow - The flow of revenue into a business on a monthly basis. - COGS – Cost of Goods Sold - The final cost of products when they arrive as finished goods. - Gross Margin - Revenue minus cost of goods

1. Pay Per Call Masterclass
Glossary: Business Terms

2. Glossary: Business Terms
3rd Party - A company or other entity that is a service provider or partner, but not wholly owned. For
instance, we use a 3rd party CRM to track our sales data.
ACH – Automated Clearing House - An electronic funds transfer system in the United States designed
for bulk batch processing of payments. Typically used by companies sending large volumes of regular
payments to vendors. This form of transfer is not immediate and can be recalled.
AI - Artificial Intelligence - The ability of a computer to mimic human cognitive skills such as learning
and understanding.
Analytics - The process of collecting, interpreting and communicating meaningful patterns and actionable
insights from data.
AOV – Average Order Value - The average value per order over a period of time like a week or a month.
This statistic is useful when planning for future sales or working with partners that are performance based.

3. Glossary: Business Terms
AP – Accounts Payable - The department responsible for paying bills and sending payments to clients,
vendors and partners.
API - Application Program Interface - A set of protocols and tools for building software applications.
AR – Accounts Receivable - The department responsible for making sure all funds owed to the
company are received.
Arbitrage - A business practice that involves taking advantage of the price difference between two
markets.
ARR - Annual Recurring Revenue - A measure of how much recurring revenue a business can expect
every year. Typically used by companies that sell software, subscriptions or services.

4. Glossary: Business Terms
Asset - Something that holds value or generates a profit on behalf of yourself or your business. Can also
be a human asset which is a cultivated relationship where value can be extracted.
Attrition Rate - The rate customers cancel their recurring billing, or abandon a product or service.
B2B – Business to Business - When a business sells to another business directly. B2B Campaigns are
typically harder, but also are typically larger.
B2C – Business to Consumer - When a business sells directly to a consumer.
Bi-Weekly Payments - Payments made every two weeks. Typically payments made on a bi-weekly basis
are made as ‘bi-weekly net 7’ which means the funds do for those two weeks will be paid 7 days after the
closing of the billing period.
Big Data - The process of working with large and complex datasets with the goal of finding meaningful
patterns.

5. Glossary: Business Terms
Brand - The overall perception of a company in the eyes of a consumers.
Brokering - A business practice that facilitates a transaction between a buyer and seller in exchange for
a commission.
Business Intelligence - The strategies and tools that a company uses for analyzing business
information.
Cash Flow - The flow of revenue into your business on a monthly basis.
Chargeback - The return of funds to a consumer, initiated by the issuing bank of the instrument used by
a consumer to settle a debt.
Churn Rate - The rate in which users leave a platform or service.
COGS – Cost of Goods Sold - The final cost of your products when they arrive to you as finished goods.

6. Glossary: Business Terms
Collaboration - When two or more parties work together to realize a goal. Sometimes called a “JV” or
“Joint Venture”
Collections - The process of pursuing payment for outstanding debts.
Commission - Compensation based on performance, typically for selling a good or service on behalf of a
company.
Contracts - A formal agreement between two or more companies that is enforceable by law.
CRM - Customer Relationship Management - The software used to manage consumer information and
the sales process.
DBA – Doing Business As - Government registration of a brand or trade name that someone is
operating under.

7. Glossary: Business Terms
eCheck - The electronic transfer of money from one bank account to another.
Feedback - The process of reviewing inputs and their corresponding outputs with the goal of improving
performance.
GDPR - General Data Protection Regulation - Regulation for simplifying data privacy laws in the EU
and protecting consumers with severe penalties for non-compliance.
Going Direct - The process of learning who an advertiser is and cutting out the middlemen in the value
chain. For instance if you are working with an advertiser at an affiliate network and ‘go direct’, you would
cut out the affiliate network and work directly with the advertiser. This typically comes with higher payouts
and more profit margin, but also carries more payables risk. Most upstanding affiliate networks pay their
affiliates even if the advertiser doesn’t pay their invoice. If you go direct to an advertiser you do not have
an affiliate network in the middle guaranteeing your payout. Affiliate networks usually always pay faster
than advertisers do, bearing some of the financial risk in the transaction. By ‘going direct’ you will most
likely have to wait longer for your payment.

8. Glossary: Business Terms
Gross Margin - Revenue minus the cost of goods and advertising costs leaves your gross profit, or gross
margin.
Gross Revenue - The total of all funds that came into your business during a specific period of time.
Home Services - Businesses that provide services to homeowners.
HR - Human Resources - The management of staff with end goal of maximizing employee productivity,
satisfaction and performance.
Incentive Alignment - When the goals and objectives between two business are in alignment with each
other in a collaborative way. When incentives align the likelihood for a win-win situation is high.
Incorporation - The process of setting up an independent business entity. In the US these can include “C
Corps”. “S Corps” and “LLCs” (Limited Liability Company)

9. Glossary: Business Terms
Independent Agent - A third party that acts on their own behalf.
Insurance - A guarantee of compensation for specified loss or damage in return for payment of a
premium.
Invoice - A bill sent from one party to another for money due.
Jurisdiction - The official power or authority to make specific decisions in a particular region or industry.
Also used as another way to say a country. “We have entities in a few jurisdictions (countries).”
KPI - Key Performance Indicator (Client KPI) - A single metric used to measure and evaluate the
performance and effectiveness of an organization, project or business activity.
Legal - Anything that is permitted or required by law. Also the department that manages contracts and
legal requests inside an organization.

10. Glossary: Business Terms
Liabilities - The amount of outstanding payables and debt your organization has at any given period of
time.
Licensed Agents - Any call center agent that requires some type of formal licensing through a
governmental body or other institution.
Local - A business that operates in a specific and usually small geographic region.
LTV – Lifetime Value - The average value of a user after they are no longer a customer. For instance,
the LTV of a user that is paying $10 per month for 6 months is $60 if they do not renew their subscription.
Mail Forwarding Service - A mail service that is like an independent post office box. These businesses
are not run by the government and typically provide other services like mail forwarding, email notifications
when mail arrives, scanning and shredding of mail and more.

11. Glossary: Business Terms
Margin - The amount of money in a transaction that is considered profit. For instance if you sell
something for $100 and your cost is $50, you have a 50% margin of $50. To calculate your margin in
dollars, you simply subtract your cost from revenue. To calculate your margin as a percent, divide the
dollar margin by the gross.
Merchant Processor - A business that processes credit card transactions on behalf a business.
MRR - Monthly Recurring Revenue - A measure of how much recurring revenue a business can expect
every month. Typically used by companies that sell software, subscriptions or services.
Negotiation - The process of coming to an agreement over terms between two parties that are entering
into a mutually beneficial relationship.
Net Margin - Net margin is revenue minus the cost of goods, advertising, and any other overhead
required to run your business.

12. Glossary: Business Terms
Net Payment – “Net 7” - Payment terms where one party will pay a specific number of days after a set
pay period. For instance, monthly net 7 payment terms mean whatever amount is due at the end of the
month will be paid 7 days after the closing of that billing period.
Net Revenue - The amount left over after you take the gross revenue and subtract all costs of doing
business.
Non-Payment (Burn) - Money owed to a business that has not been paid.
NPS Scores - Net Promoter Score (Net Promoters) - A method for determining how loyal customers
are to a brand or product.
Onboarding - The process of introducing and familiarizing an employee or client with a company's
products and service.

13. Glossary: Business Terms
Operating Expenses - Expenses required to run a business not including the cost of your goods or
advertising.
Opportunity Cost - When running a business you have to be careful and precise about your time
allocation. Opportunity cost is the cost of your time and energy focused on one task, when it could be
focused on another. For instance, if you are spending 3 hours a day making banners for your advertising
campaign instead of doing business development, you could outsource that function to someone else
cheaply, reclaiming your 3 hours. The time you spend missing out on opportunities because you are too
busy is the opportunity cost.
Outsourcing - The process of finding labor sources outside of your home country, typically avoiding tax
liabilities and government requirements. The global labor force also works at a market rate and is cheaper
than labor in first world countries.
Payables - The amount of money owed from your organization to clients and vendors at any given period
of time.

14. Glossary: Business Terms
Payment Terms (Terms) - The criteria that must be met in order to receive payment.
Payout Bump – “Bump” - Asking an affiliate network or affiliate manager to ‘bump’ your payout up when
you want more money for each conversion. You should always ask affiliate managers to raise or ‘bump’
your payouts for any campaigns you plan to run for long periods of time, or that have substantial volume.
Affiliate managers will typically bump up any payout when asked without much resistance, but won’t do it
unless prompted. A good way to get them to raise your rates is to compare with another Affiliate Network,
or to let them know that you have existing traffic to the campaign.
PCI Compliance - (PCI DSS) Payment Card Industry Data Security Standard - A set of standards that
were created to increase controls around credit card holder data and to reduce credit card fraud.
Platform Fees - The costs associated with using a platform.
PO Box – Post Office Box - A mailbox setup to receive mail at a government post office that can be
used for personal or business uses.

15. Glossary: Business Terms
PR – Public Relations - Using the press to distribute information about your business driving customers
and name recognition. PR Is not a marketing plan unless you have a background in it and are extremely
experienced. Today’s media cycles run in periods of hours not days and it is complicated to hold their
attention long enough to get repeated exposure.
Pre-paid - The practice of paying for a service or product before receiving or using it.
Privacy - The right to withhold or provide personal information.
Profit - The money left over when all business expenses have been paid.
Rates - The cost of using a product or service.
Receivables - The amount of money due to your organization at any given period of time.

16. Glossary: Business Terms
Registered Agent - A responsible party registered with a government office responsible for receiving
communication about a corporate entity.
Retention - The ability to retain customers over some specified period.
Revenue - The gross amount of money you receive whenever a criteria is met.
Revshare - When revenue generated from a sale is split between 2 parties based on the total dollar
volume spent. For instance if you received a 10% revenue share for whatever products you sold on a
website, when you sell $100 worth of goods, you receive a $10 commission.
ROI – Return on Investment - A marketing campaign’s main purpose is to generate a profit for the
company, client, product or service being promoted. It is important to calculate that profit regularly
throughout the process and monitor it on an ongoing basis by determining the campaigns ROI, or return
on investment. ROI can be calculated by subtracting the advertising costs from the gross revenue and
dividing the difference by the original advertising cost and multiplying by 100 for the percentage ROI.

17. Glossary: Business Terms
SaaS - Software as a Service - A business model for software companies that charge customers on a
recurring basis for access to their technology.
SEPA - Single Euro Payments Area - An initiative in the European Union for integrating payments and
simplifying banks transfers in euro.
Service - The business practice of providing specialized work in exchange for payment.
Slack - A cloud-based tool for communicating and collaborating with teams.
SMB - Small to Medium Business - Established businesses that are limited in scope and resources due to
their size and requirements.
Spread - Another term for margin.
Start-Up - A newly established business.

18. Glossary: Business Terms
Tax Liability - The amount of money owed to the government for taxes during a specific taxable period of
time.
Trade Show - An event for businesses and individuals involved in a particular industry to network.
Transparency - The practice of operating in a way that it is easy for others to see what actions are
performed.
Upsell - An additional offer presented to a user during or after the checkout process to increase the
average order value.
Vertical Integration - The process of cutting out all of the vendors, manufacturers and service providers
in a value chain to control the entire process and reap the rewards of lower costs and higher margins
every step of the way.

19. Glossary: Business Terms
Weekly Payments - Payments made on a weekly basis. Typically payments on a weekly basis are made
as ‘weekly net 7’ which means the funds due for that week will be paid 7 days after the close of the billing
period.
Whitelabel - A business practice where a product or service is created by one company and then re-
branded by another to make it look like their own.
Wholesale - The price of bulk goods directly from a manufacturer, broker or importer.
Wire Transfer (TT - Telegraphic Transfer) - A telegraphic encrypted transfer of funds using the global
banking system. This is the safest and fastest form of funds transfer the banking system offers and
cannot be reversed once processed unless there are extreme circumstances.