Business terms used in the online world that make you think
Anyone just entering into the business world, can easily feel like a deer in the headlights while speaking to other business owners. Even if you're a vet. Here's a glossary to help be a part of the conversation! (Because there are so many we will take this about 10 at a time)
A/B Testing (AKA split test) - testing out the copy (or wording), look, or imagery of a website, ad, or email to see which preforms/converts better. It's best to test 1 or the other at a time. That way you aren't confused about what works and what doesn't work.
Abandonment Rate (AKA bounce rate) - the percentage of people that come to a site without exploring past the initial page or the seconds someone spends on a page before leaving.
Accounts Payable - money your business owes.
Accounts Receivable - money owed to your business.
Accrual Basis - accounting method of recording income and expenses as they occur.
Accruals - expenses that have happened but haven't been recorded yet. The most common example is payroll taxes.
Affiliate - gets a kickback every time someone makes a purchase with their assigned link.
Asset - anything owned by your business that has value.
Balance Sheet - snapshot of essential information of the companies net income. Summary of your business assets and liabilities.
Bookkeeping - a method of accounting that involves the recording of all financial transactions for your business.
Capital (fixed capital) - The wealth of your business refers to the long-term worth of your business.
Engagement - the way people interact with you online. ei. Likes, comments, clicks, shares, opens
Freebie - a piece of content that a company uses for themselves or a client that is given free of charge or in exchange for an email.
Funnel - refers to the different stages of a website visitor's journey before they make a decision to buy a product or service. However, for most online businesses is the different stages of services a customer is will commit to before reaching the highest level of support.
Gross Profit - calculated as total sales minus the costs related to sales.
Handle - social media "username" preceded by an "@" sign for example @Wix.
(I)deal(C)lient (A)vatar (AKA Target Market) - a group of consumers at which a product or service is the best fit for.
Lead - a person or company that has shown interest in a product or service.
Net Worth- business's total value. Determined by your total current assets minus the current liabilities owed by your business.
Opt-in form - online form used for visitors to sign up for an email list. Usually baited with a "freebie".
Profit & Loss Statement - Addresses the bottom line, how much the business has earned and spent over a period of time.
Profit Margin - percentage pocketed from a sale after expenses
Prospect - a possible client or customer of a company. Usually simply looks and act like the company's target market.
Qualified Lead - someone who has opted to receive communication from a company.
Revenue - income
What terms would you like to see come out next?