As most people start to investigate online money-making strategies, they hear about CPA programs and ask "what is CPA marketing?"
Works A Little Differently Than Traditional Affiliate Marketing
CPA marketing is a form of affiliate marketing but works a bit differently than more traditional, affiliate marketing programs. In a conventional affiliate marketing program, the affiliate is paid only when a sale is made. At that point, a commission is earned based on the price of the item or items sold. This means that for an affiliate to get paid, a customer must take the step to part with some of their hard-earned money. Thus this can sometimes make commissions hard to earn.
What is CPA marketing and how does it differ from regular marketing program arrangements with affiliates? CPA is an acronym that stands for "Cost Per Action" or for "Cost Per Acquisition."
What this means is that an affiliate is paid when a visitor to their website takes a certain action, or when the company running the CPA program or promotion acquires a "lead" for a new customer.
An Example Would Be!An example of a CPA advertising program in action is when you go to a website that offers something to the visitor in exchange for their information. Many insurance companies offer free quotes for their policies online. If a CPA affiliate was promoting that insurance company's free quote page and a visitor entered their information in the webpage to receive their quote, then the affiliate promoting that CPA program would receive payment for that "action" by the consumer or for the "acquisition" of a lead for the insurance company.
The amount that is paid to the online marketer, or affiliate, who is promoting the program can vary greatly. Some companies will spend several dollars per action or lead if the company has the potential to make a great deal of money if that "lead" turns into a paying customer with them. Other programs might only pay a few cents to a dollar per action, but even these smaller commissions can add up over time.
What I ThinkThe great thing about CPA affiliate marketing programs is that the affiliate will be paid even if the consumer never becomes a paying customer with that company. For the companies that participate in CPA offerings, it is merely the cost of doing business and of collecting a more substantial list of people who might be interested in their products or services in the future.
As consumers are becoming more careful about spending their money, it can be more difficult for affiliates to make a living if they must rely on outright sales to earn a commission. This is why it is increasingly vital that online marketing affiliates learn what is CPA marketing and take advantage of this additional avenue of generating income for themselves.