If you’ve been involved in regular affiliate networks, you are going to find some advantages and disadvantages using a CPA network instead. These can depend on whether you are implementing a campaign with a CPA network as an advertiser, or deciding to provide advertising on different sites as an affiliate. Either way, this pattern is beginning to grow on both affiliates advertisers and publishers because the advantages far outweigh the disadvantages on both sides. Let’s go over a few of the pros here.
There are significant advantages for both the advertiser and the publisher. If you choose to advertise with this model, you know that you are getting the benefits by how many people perform the action that you pay out for. This is a whole lot easier than dumping money into accounts that may or may not be leading to some sort of sales benefit. The results of having a CPA advertising campaign are far more measurable than PPC, and you can even include a pay-per-sale action too, if you want. And, you don’t have to train or micromanage your affiliates the same way you would in a PPC or PPS (pay-per-sale) scheme. For publishers, the advantages are significant too. They are typically more profitable in downturns, the payouts can be higher per action than per click, and there is less work involved, and the model is far less complicated to implement. You don’t have to generate a ton of content, nor do you even have to own a website! Let’s go over these advantages more in depth, so that you understand why these advantages exist and how to best exploit them.
More Measurable Results For Advertisers
Advertisers love the fact that they can now measure the cost versus benefit of their online advertising campaigns using CPA networks. And, if you are trying to get people into a sales funnel, it makes more sense to use the CPA network rather than a PPC. It’s a great way to build a contact list and start off with people who are seriously interested in your products, and not just people who visited, but have no intention of buying. Once you get people’s email addresses, the visitor goes from being incognito to someone you can actively market online, and with their permission! (i don’t say that you mislead your visitors or take advantage)
Payout Per Action Is Better
Since advertisers can be certain that they are getting the benefits out of their campaigns aka. making money online , that they want, they are willing to pay better than a PPC model. Payouts can range from $1 to $50 for every pay-per-action that is completed by a visiting surfer on their site. Since people are much more willing to give out a few details for a little return, rather than shelling out money on an unknown affiliate offer, the conversion rate of traffic to those that complete the pay-per-action is pretty good too.
Upfront Work Is Easier
One of the biggest advantages that most affiliate marketers and publishers intuit right away is the pay model. If you think about it, you aren’t being paid to generate a sale or to setup entire strategies to get keywords that match high-paying pay-per-click (PPC) options. So, there isn’t much direct work, and all you have to do is generate a steady stream of people to the CPA partner to get a decent payout.In comparison, it is much harder to try and get pay-per-sales because you have to create an offer that entices a buyer to buy the product, once they are sent to the affiliate. It takes a lot more marketing effort to get a pay-per-sale payout. The same is true for PPC, as anyone knows that an enormous amount of work goes into PPC campaigns to get high paying keywords advertised by using keyword rich content. You have to research those keywords and then you have to write content that will trigger the Google engine to serve up those high-paying ads. There’s none of that with a CPA model
CPA Networks Work Better In Tight Economies
Let’s face it, people are holding on to their monies a little more tightly these days. If you can’t get them to part with it, no matter how good your marketing offer is, you are going to lose money and expend a lot of effort for nothing. However, if you are using a CPA network, you can still get a payout because people are far more willing to part with information than they are with their money, especially if they get something for free. And, many advertisers do offer some sort of incentive to get the potential customer to do the action that you are being paid for, without much input from you. So, in an economy that is going to deplete the finances of people, it can pay to use a CPA network more than a pay-per-sale model.
Advertisers Offer Incentives, Not Publishers!
In PPC and PPS (pay-per-sale) models, it was typically the marketers dilemma as to how to get visitors to buy or click on a link. A sound marketing strategy is to offer an incentive, like a freebie. The problem with that, from a publisher’s point of view, is that you are doing a lot of upfront work with no idea if it’s going to generate a payout. And, you are offering goods in exchange too! With CPA models, the advertiser just wants the traffic and they set up the incentives on their sites, so the publisher has less work to do and no freebies to give! All the publisher has to do is advertise the incentive and the link, which might be a discount voucher or a free gift. They don’t actually have to fulfill the free offer as in cost per-sale or PPC strategies. This makes it ideal for people who don’t necessarily have a website or want to spend time creating content to drive traffic to affiliate websites.
You Don’t Need A Website!
While it doesn’t hurt to have a few websites to get into the CPA networks, you don’t necessarily have to use them to drive traffic to the offers. Instead, if you have social networking accounts, you can use your friends list to help drive some offers, as long as it doesn’t interfere with your Terms of Service for that site. You don’t have to create vast amounts of content for this type of strategy to work, you just have to have access to traffic and attention. Many people can do this if they have a presence on a blog or even in forums that they don’t necessarily own or maintain. As long as people are paying attention to them, they can post a link, and add a little clip, that’s sufficient for getting a payout. Since the advertisers are the ones creating the landing pages, offering incentives, and fulfilling orders, you just have to direct traffic there and you’re done!
There Are Hundreds Of Networks To Choose From!
There are numerous CPA affiliate networks and some will obviously be better than others. However, with so much choice available, you are bound to find some that work for your particular market niche and have the network that would take you much time to create on your own.
Strict Fraud Prevention Rules
Since the big scandal on click fraud, newer advertising models have tried to steer clear of similar issues. In fact, CPA networks tend to be much stricter about fraud prevention and police their networks much more intensely than pay-per-click models. This works very well for advertisers who want to ensure that the benefit they are paying for is, in fact, being attained, instead of going to fraudsters and con artists. However, this same benefit can also be a negative when it comes to publishers who will have far more rules to
attend to and have to really convince a network, which polices its members far more intensely, that they are on the up and up and ready to play fair and square. This leads us into some of the negatives associated with CPA networks.