The scope for online marketing has increased by leaps and bounds in the recent years. This increase has been accelerated by tremendous surge in online activities. However, you have to overcome cut throat competition in the present online market by following an effective marketing strategy. This invariably involves practice of an effective marketing method that can yield rich dividends for you. One such effective monetization strategy in Internet marketing is CPA Marketing. It is probably one of the best ways for the advertiser to generate leads and best for affiliates to monetize their websites.
So let us see what is CPA Marketing?
Here under I have illustrated everything you need to know about CPA Marketing.
What is CPA Marketing?
CPA stands for Cost per Action. It is a type of internet marketing which requires you to generate leads for companies, and in return you are get paid by those companies for each lead that you generate for them. Simply put, in CPA Marketing you get paid when a user clicks on your affiliate link and completes an action.
The required “action” from the user can be anything and can consist of the following:
The user can fill out a form
Buys something
Signs up for a free trial
Gets an estimate or quote
Downloads Software, Game etc
The working of CPA Marketing is simple too. Affiliate direct traffic to an offer. The visitor is required to avail that offer. For this, he needs to fill signup at that website, download something or anything else. Once a user completes the “action”, the company pays you for that lead. That’s it. CPA Marketing is simple as that.
Let me Highlight the steps involved in CPA Marketing.
1. User visits your website
2. User clicks on an Affiliate Link or Banner
3. User is then directed to the Advertisers offer page
4. User Fills out the Offer
5. You (Affiliate) Get Paid
How much you get Paid in CPA Marketing?
In CPA Marketing, the payment to the Affiliate in on per lead basis that he generates for the companies. Although the payment for each lead can vary, but you can typically expect to get anywhere between $1 to $100 or more per lead. This variance is directly related to offer you provide to your users. If you are doing CPA Marketing for a very competitive market, such as Insurance market, the payment can be much higher than the range listed above. However, in the initial phase and with low budget doing CPA Marketing for a very competitive market is not feasible at all.
How to do CPA Marketing?
Well, CPA Marketing happens in stages. Firstly, you need to sign up with an Affiliate Network. When you do this, you sign up as an affiliate and go on to publish ads on your websites. There are plenty of popular affiliate networks that you can choose from including ClickBooth, Max Bounty, Convert2Media, Copeac, NeverBlue, Commission Junction, etc. Most of the affiliate networks lay down strict rules for joining them. You have to convince them that you have the knowledge and skills to drive traffic to them. For this, you need to find a method of driving targeted traffic. Then you get to have affiliate links and finally need to drive traffic to the links. These are basic things you need to accomplish for doing CPA Marketing.
Why CPA Marketing?
There are two basic reasons why you should use CPA Marketing over other forms of internet marketing such as AdSense, Banner Advertising and other forms of Affiliate Marketing Strategies.
The primary reason for choosing CPA Marketing is the fact that you are high on the value chain, and so get the opportunity to make the most money from your site. The other forms of internet marketing such as Banner Ads, Adsense, CPM/CPC models put you at the bottom of the value chain and so you end up making less money. Whereas promoting CPA offers put you high up on the value chain.
The other reason being that CPA Marketing gives you the opportunity of integrated advertising. You can seamlessly integrate CPA offers into your site, which means you don’t have to load your website with ugly and nasty ads. CPA Marketing gives you the freedom to run clean and professional website.
Another great reason to go with CPA affiliate marketing is that it not compulsory to have a website. You can send visitors direct to advertiser website by direct linking. Affiliates can promote CPA offers on the Social site, media buying, Facebook etc and can send visitors directly to the offer.
Difference between CPL and CPA?
In CPL Campaigns, the advertisers pay for an interested lead. It is mostly used by companies who want to sign up visitors for their products or services. In CPL marketing advertiser is interested in capturing visitors details like, email, phone number etc so that they can contact them in the future.
The publisher runs banner ads and hyperlinks on his website which on clicking lead to advertiser’s website. A lead is said to be generated when a visitor clicks on the affiliate link or banner ad displayed on a publisher’s website to land on an advertiser’s site and submits his personal information (like email) confirming that he is interested in the offer.
When a visitor/user signs up for the offer, the publisher gets paid by the advertiser or merchant. Pay rates for CPL can range anywhere from few cents to several dollars. Whereas, in CPA Campaign a publisher gets paid when a user clicks on an affiliate link and completes an action. One will not find much difference in CPA, and CPL ultimately an advertiser is expecting to signup visitors on their website or download some products or leave some personal information.
In some CPL programs, advertisers offer fixed rates per lead and also sale commissions if the visitor who sign up today, but buys something in the future from advertiser. It can be great for the affiliate to expect double earning.
So you see that CPA Marketing is one of the most effective marketing methods for affiliates to carry out internet marketing and monetize their websites. As we have already shown above, you need to sign up a viable Affiliate Network and implement ways to drive targeted traffic to your website. CPA Marketing provides you an opportunity to be high on the value chain so that you ultimately succeed in making the most money out of your website. So you should use CPA Marketing as an internet marketing strategy to make money from your site
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