Free reference

Marketing & Business Glossary

The marketing, business and tax jargon US & Canadian small businesses actually meet — explained in plain English, so nobody can blind you with acronyms.

38 terms

1099-NEC

A US IRS form you send to each independent contractor you paid US$600 or more during the year, and to the IRS.

Skipping it when required can mean penalties, so track contractor payments throughout the year.

A/B test

A test that shows two versions of something (an email, ad, or web page) to different people at the same time to see which performs better.

Lets you make decisions based on real customer behavior instead of guesswork, even on a tiny budget.

ADA (web accessibility)

The Americans with Disabilities Act is increasingly applied to websites, which courts expect to be usable by people with disabilities (commonly measured against WCAG standards).

Inaccessible sites face a growing wave of lawsuits, and accessible design also widens your customer base.

Awareness

How many people know your business exists. It’s the top of the marketing funnel, before anyone buys.

Without awareness, no one can become a customer — it’s the starting point for growth.

BBB (Better Business Bureau)

A private nonprofit in the US and Canada that rates businesses and collects customer reviews and complaints.

A solid BBB rating and resolving complaints there can build trust with cautious customers.

Bounce rate

The percentage of visitors who land on your website and leave without clicking anything or visiting another page.

A high bounce rate often means the page is slow, confusing, or doesn’t match what people expected.

Brand

The overall impression people have of your business — your name, logo, tone, reputation, and how you make customers feel.

A clear, consistent brand makes you easier to remember and trust, which wins repeat business.

Call to action (CTA)

The specific action you ask someone to take, like “Call now,” “Get a quote,” or “Buy today.”

A clear CTA tells people exactly what to do next, which turns interest into actual leads and sales.

CAN-SPAM Act

The US law governing commercial email. It requires honest subject lines, a real physical mailing address, and a working unsubscribe link in every marketing email.

Each violating email can draw fines, so set up proper unsubscribe handling before you send campaigns.

CASL (Canada)

Canada’s Anti-Spam Legislation, which is stricter than the US: in most cases you need a recipient’s consent before sending commercial email or texts.

If you market to Canadians, get consent first — penalties can reach into the millions.

CCPA / CPRA (California)

California privacy laws giving residents the right to know what personal data you collect, to delete it, and to opt out of its sale.

If you have California customers and hit the size thresholds, you may need a privacy policy and a clear opt-out option.

Conversion

When a visitor takes the action you wanted — making a purchase, filling out a form, or calling you.

It’s the moment marketing turns into real business value.

Conversion rate

The percentage of people who take your desired action out of everyone who had the chance. If 100 people visit and 3 buy, that’s a 3% conversion rate.

Improving it means more sales from the same traffic — often cheaper than buying more visitors.

CPC (Cost per click)

How much you pay each time someone clicks one of your ads.

It tells you how expensive it is to get a single visitor, so you can judge whether an ad is worth running.

CPL (Cost per lead)

How much you spend on average to generate one lead (a potential customer who shares their contact details).

Comparing it to what a customer is worth tells you whether your marketing is profitable.

CTR (Click-through rate)

The percentage of people who click an ad, link, or email after seeing it. 1,000 views and 20 clicks is a 2% CTR.

A low CTR usually means your message or offer isn’t grabbing attention.

Economic nexus (Wayfair)

A rule from the 2018 South Dakota v. Wayfair Supreme Court case: you can owe sales tax in a US state where you have enough sales, even with no physical presence there. Thresholds are often US$100,000 in sales or 200 transactions.

If you sell online across state lines, you may need to register and collect sales tax in states you’ve never set foot in.

EIN (Employer Identification Number)

A nine-digit tax ID the IRS issues to a US business, used to file taxes, hire employees, and open a business bank account. It’s the business equivalent of a Social Security Number.

Most banks and clients will ask for one, and it lets you keep your personal SSN private.

FTC (and the Endorsement Guides)

The US Federal Trade Commission polices deceptive advertising. Its Endorsement Guides require that paid reviews, influencer posts, and testimonials clearly disclose the relationship.

If you pay or gift people to promote you, they must disclose it — undisclosed endorsements can trigger FTC action.

Funnel

The journey a customer takes from first hearing about you (awareness) to becoming a paying customer, often pictured as a narrowing funnel.

Knowing where people drop off tells you exactly what to fix to win more sales.

GEO (Generative Engine Optimization)

Optimizing your content so AI tools like ChatGPT, Gemini, and Google’s AI answers recommend or cite your business when people ask questions.

More people now ask AI instead of searching, so showing up in those answers is becoming as important as ranking on Google.

Google Business Profile

A free Google listing that shows your business on Google Search and Maps, with your hours, location, reviews, and photos.

For local businesses it’s often the single most valuable free marketing tool — it’s how nearby customers find and call you.

Impressions

The number of times your ad, post, or listing was shown — whether or not anyone clicked.

It measures reach, but remember impressions alone don’t prove anyone acted.

Landing page

A standalone web page built for one purpose, usually where people arrive after clicking an ad, focused on a single offer and action.

A focused landing page converts far better than sending ad traffic to your general homepage.

Lead

A person or business that has shown interest in what you sell, usually by sharing contact details like an email or phone number.

Leads are your pipeline of future customers — without a steady supply, sales dry up.

Lifetime value (LTV)

The total profit you expect to earn from a customer over the entire time they do business with you, not just their first purchase.

Knowing LTV tells you how much you can afford to spend to win a customer.

LLC

A Limited Liability Company — a popular US business structure that separates your personal assets from business debts and lawsuits, with simpler rules than a corporation.

It helps protect your house and savings if the business is sued or can’t pay its debts.

Organic

Traffic, reach, or results you earn for free — through search rankings, social posts, or word of mouth — rather than paid ads.

Organic results compound over time and keep working after you stop paying.

PIPEDA (Canada)

Canada’s federal privacy law for personal information collected in commercial activity, requiring consent and reasonable safeguards.

If you handle Canadians’ personal data, you’re expected to get consent and protect that information.

Positioning

How you define what makes your business different and why a specific type of customer should choose you over competitors.

Clear positioning helps the right customers pick you instantly and lets you avoid competing on price alone.

Retargeting

Showing ads to people who already visited your website or interacted with you, reminding them to come back.

These people already know you, so retargeting is usually one of the cheapest ways to win a sale.

Retention

Keeping existing customers coming back rather than constantly chasing new ones.

Keeping a customer is almost always cheaper than finding a new one, and loyal customers spend more over time.

ROAS (Return on ad spend)

How much revenue you earn for every dollar spent on advertising. Spend US$1 and earn US$4 back, and your ROAS is 4:1.

It’s the fastest way to tell whether an ad campaign is making or losing you money.

ROI

Return on investment — the profit you make compared to what you spent, across any activity, not just ads.

It keeps you focused on what actually grows the business rather than vanity metrics.

Sales tax

A tax added at the point of sale on many goods and some services, set by US states and localities (Canada uses GST/HST/PST instead).

You may be legally required to collect and remit it, and the rules vary by state — getting it wrong creates real liability.

SEO

Search engine optimization — improving your website so it ranks higher in Google and other search engines for free.

Most buying journeys start with a search, so ranking well brings a steady stream of customers without ad costs.

Sole proprietor

The simplest business structure, where you and the business are legally the same person, with no separation between personal and business liability.

It’s easy and cheap to start, but your personal assets are exposed if the business runs into trouble.

W-9

A US IRS form a business or contractor fills out to give their taxpayer ID to a company that pays them.

If you hire US freelancers, collect a W-9 before paying them so you can report what you paid.

No term matches that — try a different word, or ask Bea.

Can’t find a term, or want this applied to your business? Build a package with Bea →