CPA Marketing, sometimes referred to as Pay Per Performance Marketing isn’t much different than affiliate marketing, except for some minor exceptions. As the name implies, there is a cost and there is an action. The “Cost” refers to the amount of commission that the Advertiser is willing to pay for a particular “Action” to an affiliate (sometimes referred to as a publisher). That action could be:
Clicking on a Link Referred to as Cost per Click (CPC)
The advertiser pays the affiliate a per click commission not unlike Google’s AdSense model. Usually the click commission is less than $.10, so it takes a lot of these actions to earn much money for the affiliate.
Filling Out a Form Referred to as Cost per Lead (CPL)
The advertiser pays the affiliate a commission for an end user filling out a form that the affiliate has directed the end user to through their affiliate link.
Buying Something Referred to as Cost per Sale (CPL)
The advertiser pays the affiliate a commission when the end user they have directed to the advertiser’s site through their affiliate link buys a product or service and pays for it with a credit card.
Making a Phone Call Referred to as Cost per Call (CPC)
This is a fairly new concept and a bit more complicated to figure out. The majority of time, Cost per Call is compensated only if the operator at the call center makes a sale, then the affiliate is credited with a commission. With the rise of mobile advertising, this option will more than likely gain a lot more traction over the next few years. Presently, only a small proportion of advertisers pay this way.
The benefits of CPA marketing is higher conversion rates. There are a higher percentage of prospects that will visit your CPA offer and follow through with a corresponding ‘action’, than prospects that would actually buy a product.
Thusly, you would get paid EVERY time the ‘action’ is completed.
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- How To Promote CPA Offers (cpawealthblueprints.com)
- CPA Network Secrets (cpawealthblueprints.com)
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