What is CPA Marketing and what does CPA mean?

What is CPA marketing all about?

Let’s get down to the basics and answer the question “what is CPA Marketing?” That’s really a good question, so here we go! Let’s put 2 and 2 together and figure it out!

What is CPA Marketing?

One of the most powerful  and profitable, yet unexplored ways to make money online is called CPA Marketing.

CPA is also called  “Cost-per-Action” or “Cost-per-Acquisition”.  It is an online marketing method along the lines of Click Per View and Cost Per Click. CPA works like those online marketing methods, because it is based on triggering actions from website visitors to drive sales.

CPV (Click Per View) is geared towards getting website visitors to see an ad without having to click on it. CPC (Cost Per Click) is all about getting website visitors to click on an ad without further action.

CPA requires its publishers to get their prospects to complete a specific action. That is why it is called CPA or Cost Per Action.  One required action to be completed can be clicking on a landing page to be redirected to an offer.  A different example would be to complete simple forms to opt in for a product or survey.

What does CPA Marketing Mean?

CPA Marketing can be simply defined as an online advertising payment model that requires a qualifying action before payment is made. CPA Marketing is a vital part of Affiliate Marketing. It has four main parties involved:

  • the Merchant (also called the vendor)
  • the Network (which helps in transactions)
  • the publisher (also called the affiliate)
  • the Customer (final user).

Cost Per Action Marketing provides various opportunities so that you (the affiliate or publisher) can earn an ongoing passive income.  The affiliate/publisher, using CPA Marketing, gets paid for one of the following actions, taken by the user –

  1. Filling a form.
  2. Submitting the contact details.
  3. Providing an e-mail address.
  4. Subscribing for a free download of a product etc.

The key here is the offer!

Cost per Click and Cost per View advertising commonly forward people directly to a product page on an ecommerce site, or to a content rich site that is being promoted by the advertiser.

An offer is a description of a product or service that is being extended to the prospect. The prospect then has the  option to obtain what is being offered. The actions needed for the prospect to complete will greatly depend on what is being offered and the benefits they will receive from it.

The question is “What is CPA Marketing?” An example would be a survey offer that often requires prospects to enter their email addresses to participate. Free online gaming offers require them to simply click on a “play now” button to access a gaming page, where ads are shown between free gaming sessions.

Easy-access CPA offers can be leveraged by publishers to make quick, steady money, as long as the offers they are promoting remain popular.

They are easy to promote, because they only require prospects to complete some simple steps that often lead them to get something for free, and they can be universally promoted.

There are offers that require a greater commitment from prospects, such as auto loan and credit

what is CPA marketing? The key is the offer!

offers. Offers that ask people for sensitive information, such as zip codes, addresses and credit card information would be a good example. The sample offer to the right is an example of an offer that requires the prospect to request a quote.  All those factors determine how much you’ll get as a commission for each acquisition.

Now, you might have noticed that we have mentioned “cost per action” and “cost per acquisition” without getting deeper into what they mean to you.

How does it work?

We’ve covered the most commonly used CPA jargon and the question of what is CPA Marketing. Let’s recap and provide you with some of the CPA marketing process from start to finish. The role of publisher or advertiser is determined by their business activities, as well as the most used CPA terminology.

Cost-per-action (CPA) means that people reached by a CPA ad need to complete an action for it to be considered a success. What this completed action leads to is a payout.  The action then determines its cost.  The more complex an action is, the more it asks of the prospects and the longer it takes them to complete, equals more money for you.

An alternative meaning for CPA is Cost-per-acquisition.   CPA ads require prospects to complete a specific action like a click, but also to be “acquired” by the advertising company.

An “acquisition” occurs when a prospect enters their contact information, be it physical or electronic. The publisher gets paid for it only when it is an acquisition.  Completed actions and acquisitions are known as conversions. When you get a prospect seeing an ad, clicking on it and completing the action or data submit required, it is considered an acquisition or conversion.

Prospects see an ad, click on it but do not complete the required action. That means that the action determines its cost.   CPA Marketing pays when a conversion or action is completed much like you get paid for clicks or views in CPC, PPC and CPV marketing.

Different CPA Methods

Take a look at the different CPA methods to get a better idea and understanding of CPA Marketing –

PPC–  PAY PER CLICK or COST PER CLICK relies on paying the affiliate when the user clicks on a certain link, and thereafter, gets re-directed to a certain location.

PPL– Also called PAY PER LEAD, this type of CPA stresses on making a payment for leads being generated which implies No payment will be made for leads that don’t meet the pre-defined criteria.

PPD– PAY PER DOWNLOAD or COST PER INSTALL is when the advertiser is required to make a payment only when the user downloads a file that is required.

PPS– Known as COST PER SALE, this form of CPA Marketing stresses upon making the payment only after the sale gets completed. Unlike the other options, the affiliate gets paid after the sale is completed and authorized.

CPA Marketing relies heavily on Commission (CPA) Networks. A CPA network acts as a connecting agent between the advertiser and the publisher. An effective CPA network gives both the parties an easy path to move ahead and benefit them in an equitable manner.

We will talk some more about CPA Networks in another article.  This was a brief overview to introduce you to CPA Marketing.

Here’s to your success!

Donnie Ellis

Your Comments are always welcome!

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