The first question that might come to mind is: What is CPA Affiliate Marketing? Its a pretty straightforward concept. CPA Advertising is the abbreviation for “Cost Per Action Advertising”. In this form of advertising, a publisher (or affiliate) receives a commission whenever someone responding to the advertising they have places completes the desired action, which is typically providing some kind of personal data into a registration form. As an example, it might be something as simple as providing their name and email address – or it might be something more involved, perhaps accepting a free trial offer for a product.
The marketplace today is quite competitive, and a company needs lots of ad exposure to maintain a competitive posture. The key is to have exposure to the public that is widespread, and to maintain contact with as many possible customers as they can. By accomplishing this, a business establishes an audience for their marketing efforts, and then they can get down to the business at hand.
From the standpoint of a company, CPA advertising is a highly desirable way to market itself. It is very cost-effective, because they only pay for leads that occur when a prospective customer provides some contact information, or interacts with the company’s website in a particular way, thus creating a contact point between the company and the new prospect. Each time a new prospect completes this action, the affiliate who directed them to the page earns a commission.
The type of action that the prospective customer must take for the commission to be earned is specified by the company. In some cases, the action might be buying a trial product from the company, or accepting an introductory service for a limited time. Most often, it is something less complicated – filling out a form with their email address and name, or perhaps one with full address data. In other cases it might involve downloading some free software. In each case, the commission paid to the affiliate will be based on the action required.
When it initiates a CPA campaign, a company agrees to pay out a specific commission each time a new person visits the company’s website and takes a specified action while on that site. The exact details of that required action are specified in the details of the campaign. By setting the ground rules in this manner, the business is able to collect a list of highly qualified prospects for its business, while only paying for the visitors who actually seem, at least, to have some interest in what the company has to offer. This list of highly qualified prospects can then make all that much easier to complete the actual sales at a later time.
By establishing an advertising campaign using CPA, a company can generate large amounts of traffic for its website, but under the terms of the campaign, it will only pay a commission when a prospective customer completes the desired action while at the website. This is the probable future for Internet affiliate marketing – or at least a much larger part of it. It amounts to to paying only for results, not just traffic – results which are much more likely to bring in real business.
For the affiliate promoting this type of program, there is one huge advantage over conventional sales marketing: In sales marketing, the affiliate does not receive a commission unless someone spends money and buys something. For the affiliate who is running a CPA campaign, however, the obstacle to be overcome to earn his or her commission is much lower: all the prospect has to to is to agree to provide the requested information, or agree to accept a free trial offer, and the commission is earned.