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)

  1. 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.

  2. 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.

  3. Accounts Payable - money your business owes.

  4. Accounts Receivable - money owed to your business.

  5. Accrual Basis - accounting method of recording income and expenses as they occur.

  6. Accruals - expenses that have happened but haven't been recorded yet. The most common example is payroll taxes.

  7. Affiliate - gets a kickback every time someone makes a purchase with their assigned link.

  8. Asset - anything owned by your business that has value.

  9. Balance Sheet - snapshot of essential information of the companies net income. Summary of your business assets and liabilities.

  10. Bookkeeping - a method of accounting that involves the recording of all financial transactions for your business.

  11. Capital (fixed capital) - The wealth of your business refers to the long-term worth of your business.

  12. Engagement - the way people interact with you online. ei. Likes, comments, clicks, shares, opens

  13. 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.

  14. 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.

  15. Gross Profit - calculated as total sales minus the costs related to sales.

  16. Handle - social media "username" preceded by an "@" sign for example @Wix.

  17. (I)deal(C)lient (A)vatar (AKA Target Market) - a group of consumers at which a product or service is the best fit for.

  18. Lead - a person or company that has shown interest in a product or service.

  19. Net Worth- business's total value. Determined by your total current assets minus the current liabilities owed by your business.

  20. Opt-in form - online form used for visitors to sign up for an email list. Usually baited with a "freebie".

  21. Profit & Loss Statement - Addresses the bottom line, how much the business has earned and spent over a period of time.

  22. Profit Margin - percentage pocketed from a sale after expenses

  23. Prospect - a possible client or customer of a company. Usually simply looks and act like the company's target market.

  24. Qualified Lead - someone who has opted to receive communication from a company.

  25. Revenue - income

What terms would you like to see come out next?

"My mission is to shine my light brightly, so that others may see it and strive to turn up the brightness on their lights too"
-Rae #ShineBright

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