CPA Affiliate Marketing – Commissions Without Selling
Actually, what you may really be asking at this point is: What is CPA Affiliate Marketing? It’s really not too complicated. CPA Advertising refers to a strategy called “Cost Per Action” marketing. What actually happens is that an affiliate is paid a commission each time a person follows the link they have provided to the company’s website and takes some specified action. Typically, this might involve providing some sort of personal date (perhaps Name, email address, and Zip Code) into a registration form. Another example might be one in which the prospect must download a toolbar to their browser, or accept a free trial of 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 business itself must decide what type of action it wants its potential customers to take. The action could, in some instances, be purchasing a trial product or introductory service from the company. More often, it could involve filling in a short form to obtain information about the product or services provided by the company, or just signing up with the company’s website. Based on the action, the advertising costs (or commissions paid to the affiliate) will vary.
Once a CPA campaign is started, the company pays out the specified commission to the advertiser, or the CPA network with which it is working, each time a potential customer clicks on a particular link, and then takes the specific action defined by the specifications of the CPA campaign. In this way, advertising will be directed at attracting a specific kind of attention (and action) from its potential customers. It is not really about whether the customer made a purchase or not, but rather whether the potential customer has interacted with the website. It is really about how much attention the advertiser can garner for your company. Commissions are then paid based on those considerations.
By employing a CPA advertising campaign, a company can create large amounts of traffic to its website, but it will only have to pay a commission when a potential customer takes the desired action while at the website. This is the bright future for Internet affiliate marketing. It gets down to to paying for results, not just traffic – which results are more likely to bring in actual business.
The affiliate participating in a CPA program, sees one major advantage over conventional sales affiliate marketing: In sales, the affiliate doesn’t earn the commission until someone actually spends their money and buys something – (and then they have to worry about the possibility of returns). When an affiliate is running a CPA campaign, however, the barrier to be jumped to earn his or her commission is much lower: the prospect simply has to to be willing to provide the requested information, or download some free software, or accept the free trial offer, and the commission is earned and paid.
To learn more about being a profitable CPA affiliate affiliate, get your copy of the complete guide to CPA affiliate, which includes lots of resource links that will help you launch your business quickly.
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