The first thing you might ask is: What is CPA Affiliate Marketing? Its a pretty simple concept. CPA Advertising refers to “Cost Per Action Advertising”. In this form of advertising, a publisher (or affiliate) earns a commission whenever someone responding to advertising they have placed completes a specified action. For example, it might be providing their name and email address – or it might be something more involved, perhaps accepting a free trial offer for a product.
In today’s competitive marketplace, companies need a great deal of advertising exposure to remain competitive. The priciple idea is to have broad exposure and to have contact with a large group of potential clients. When this is done, the audience for the business is established, and the marketing efforts can begin in earnest.
CPA advertising is quicky becoming one of the most effective ways to advertise online. CPA (also known as PPA, or pay per action) creates a situation in which the marketer, or affiliate, earns a commission each time a visitor to the specified website completes a particular action specified by the client.
The company itself must specify what type of action it wants its potential customers to take. The action might, in a some cases, be buying a product or service from the company, typically on a “free trial” basis. More often, it might be filling in a particular form to get information about the product or service the company is offering, or just registering with the company’s website. Depending on the action, the advertising costs (or commissions received by the affiliate) will vary appropriately.
Once a CPA campaign is initiated, the company pays the commission to the advertiser, or the CPA network with which it is working, each time a potential customer clicks on a particular link to their site, and then takes the specific action defined by the requirementa of the CPA campaign. In this way, advertising is directed at attracting a specific kind of attention (and action) from its potential customers. It is not really concerned with whether the customer made a purchase or not, but rather whether the potential client has interacted with the website. It is really about how much attention the advertiser can obtain for the company. Commissions are then paid based on those considerations.
By employing CPA advertising, a company can enjoy large amounts of traffic to its website, but it will only have to pay a commission when a desired action is completed by a potential customer. This is the future of Internet marketing. It really amounts to paying for results, not just traffic – traffic which may, or may not, bring actual business.
For the affiliate who is promoting this type of program, there is one major advantage over conventional sales marketing: In other types of marketing, the affiliate does not receive a commission unless someone actually spends money and buys something. For the affiliate who is running a CPA campaign, the obstacle to be overcome to make his or her commission is 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.