While most people have heard of affiliate marketing, many people are not aware of CPA marketing. CPA, which stands for Cost per Action or Cost Per Acquisition, is basically a form of affiliate advertisement that is used by almost all companies throughout the world in order to generate leads for their products. This advertising is done by affiliates who work through their own websites in order to send traffic back to the advertiser’s website to sell a product of the company.
The basic idea of CPA marketing is to gain useful information from potential consumers and convert the information into profitable leads for future sales generation. This information can be of various kinds: telephone number, residential address, email address, social security number, credit or debit card number, zip code, etc. The importance of the information gathered by a CPA marketer will determine what the marketer will get paid. Basically, if a visitor to your website clicks on an advertisement, downloads a newsletter, signs up for a regular subscription or buys the product, you get paid a commission. All that you need are visitors to come to your website and submit crucial information about themselves that the company that you are working for can use in future marketing campaigns.
Sometimes the pay for a single bit of this crucial information can be as little as 70 cents. At other times, it can be as high as $50! For this reason, CPA marketing has gained in popularity and is favored by many marketers. They are more likely to be paid higher commissions by being paid by the action and not by a percentage of the sale of an item. And, since there is no returning of funds in this business model, getting paid is much quicker. When the entire action is completed by a customer, the lead is generated which means the affiliate is eligible to be paid. This is a big advantage for CPA marketers . They don’t need to wait until the product has sold in order to get a paycheck. This makes it easier and simpler for affiliates to work for their advertisers.
Who Uses CPA Marketing? Companies that sell insurance, credit and/or debit cards, public bonds, ring tones for cell phones, or even candy and coffee use CPA networks to build their leads. Although Google used CPA networking as a major part of their advertising campaign until June 2008, eBay has now taken up this form of marketing and calls it “AdContext.”
CPA marketing works through a network which acts as the mediator between advertisers of companies that want high lead generations for their websites and affiliates who do the marketing job for this purpose. “CPA networks” provide advertisers with a wide range of affiliates who have signed up with them so that various companies can choose the best affiliates for their campaigns. Unlike affiliate marketing, CPA marketing requires the marketers to receive the approval the network. Otherwise they are not accepted or registered and cannot market through the network. The approval process can be a challenge, especially for very new marketers. If you would like to apply you must undergo an interview and have a website which can be inspected for suitability. Since affiliate managers in a CPA network are interested in earning high commissions, they will carefully scrutinize the skills of the affiliates who apply. This helps them pick the most qualified applicants to help market the products and build leads for their clients. Affiliate managers are determined to find the best suited marketers for each project that they manage.
As a CPA marketer, you are hired to generate traffic to the advertiser’s website. You are allowed to use various forms of advertising such as banner ads, pop up ads, email, keywords, article submissions, pay per click or pay per view ads, video ads and social networking to attract more traffic to the advertiser’s website. Sometimes marketers in CPA networks use zip code submission options in order to generate action from individuals who visit the website. This can pay up to $60 per action. There may be a considerable amount of work involved for the affiliate to generate leads depending on the product being marketed. Sometime affiliates will be paid $30 or less for each generated lead which may seem like a very small amount for all the work needed to get results. However, if the affiliate has a robust customer list (400 to 500 prospects), then he can multiply his commissions quickly into a hefty paycheck per month. Affiliate marketing and CPA marketing are alike in this sense: the results are always better when a marketer has a potential customer list already generated and ready to go!
So why should a new marketer enlist with a CPA network ? Probably the best reason to become a CPA marketer is that you will get paid even if you don’t manage to sell the product that the company is making. CPA marketing is easier for a beginner who may not have a large budget to launch expensive ad campaigns. The chance for higher commissions exist because it is more likely that a visitor on a website will submit some information or fill out a survey rather than buy a product. With a higher chance of gathering some critical information, you have a higher chance to make a bigger monthly income when first starting out.
To get a step-by-step guide to joining the CPA marketing industry see : CPA Profit Blueprint . The price is just $7 for the guide which is loaded with information to help get you started. Additionally, there is a great video series called : Make Good Money Using CPA Offers. Grab your copies and start promoting!
