What Is CPA?
The phrase “CPA” sounds about as exciting and attention-grabbing as accounting terms would sound to a quilting enthusiast. It’s usually rattled off in this acronym form, and the assumption seems to be that you’ll know what it is. Acronyms (short forms based on initials of words in titles) intimidate people, so many new internet marketers tend to ignore or gloss over this marketing method – but “CPA” simply means “Cost Per Action” or “Cost Per Acquisition”. Cost Per Action means that your reader just has to take a specific action (E.G. input a valid email address, click on a link, request a free sample, etc.)
Cost Per Acquisition means that your reader actually has to buy the product or subscription.Websites (or reports like this) dryly talking about CPA can hardly compete with “Make a six figure income with no work – 1 week from now!” in excitement factor. But whether you’re choosing to focus on Cost Per Action or Cost Per Acquisition, CPA marketing has one common denominator: It is a form of advertising generated by a third party in which you are paid for hosting or promoting that party’s ad or link, based strictly on actions your readers take.This in turn generates any of the following actions for the advertiser who is
going to pay you:
- New subscriber sign up
- Purchase of a product
- Sales lead for your advertiser’s further follow up
How much can you earn? Well, typically… not millions. New subscriber signups usually generate between $1.00 to $1.50 per lead. You definitely won’t get rich overnight. But if you combine simple Cost Per Action with some well-chosen Cost Per Acquisitions, your payout may be much higher. For example, if you’re promoting a big-ticket item that costs $695, your commission that may be anywhere from $60-$300 on lead that results in a sale. A few of these combined with a bunch of easy “just click” links or banners can make a nice little second income for you. And once set up, it’s a painless way to add extra income generation from your already-existing sites. Put CPA to work for you while you go off to the church picnic or enjoy a well-deserved nap (after staying up all the night before, trying to solve your shopping cart problem.) And as your list grows, so too will your profits.
What Is A `CPA Network’?
A CPA network is a company that allows advertisers and web publishers (internet marketers) to find each other and connect. In other words, it’s the “dating agency” that pairs you up with your best ad match. And as with dating agencies, there are leftover prejudices about CPA networks being risky. The truth is, CPA networks have matured just as many of the bigger and more selective dating agencies (such as eHarmony) have done. Just as you see “real people” committed to values and caring relationships on eHarmony – compared to the sort of dating agency that uses scantily-clad girls speaking lines laced with sleazy innuendo. Most CPA networks are solid and reliable – it’s certain unscrupulous publishers (affiliates) who most often generate the “shady” label. In fact, one of the most important functions a CPA network can perform lies in making sure both web publisher (you) and the advertiser are reputable, solid prospects. Choose recognized and reputable CPA networks, and use intelligent marketing tactics, and your sites should never have a problem with credibility.
How Does It Work?
So far, it sounds remarkably like affiliate marketing, doesn’t it? But there are some vital differences it helps to learn straight away. Both rely on internet marketers to promote their products. The biggest different between the two lies in CPA emphasis on its affiliates generating leads, rather than sales. It’s usually less labor-intensive – you don’t have to do the sort of ongoing promotion affiliate marketing needs. And in case you’re wondering what I mean by “generating leads”, that means having site visitors act by filling out a form with some sort of personal contact information. After that, your part is done – except for collecting your payment! It really is that easy.Start simply at first, with email and zip code cost per action ads. As your skills grow, add in cost per acquisition to promote high-ticket items.
Sorting Out The Confusion
It might help, at this point, to look at a quick comparison of 3 similar forms
of `affiliate’ marketing: Affiliate Marketing CPA Marketing MLM MarketingAffiliate marketing can be originated from a network – such as Clickbank – or from an individual marketer. CPA marketing can originate from a CPA network - such as AZN Network, CPA Empire, PrimaryAds or Incentaclick – or from a large, recognized company or organization who can afford to run its own ad campaigns Multi-Level Marketing depends on its members recruiting new members in what is basically an illegal “pyramid” marketing structure. Ethical internet marketers avoid this model. Commission payouts are usually once or twice a month, and are based on results
(sales) Commission payouts are less restrictive and are based on actions the end user takes (especially lead generation) Occasionally offer promotions or product bonuses Often offers its publishers high-end contests and promotions In 95% of all cases, any one will be accepted as an affiliate CPA networks screening prospective web publishers, often with a phone call as part of the process You provide the landing CPA network or page and all promotion. advertiser provides the landing page. You provide the space to display their link or banner ad.
How Does It Work?
CPA networks can be choosy about who they accept. They want a representative who is going to take aggressive action – and they prefer reps who have substantial lists. This doesn’t sound too promising for a new marketer, but let’s not get ahead of ourselves. On the other hand, CPA networks tend to reward affiliates who generate strong results. This can be in the form of prizes, bonuses, cash – and being offered exclusive, highly-converting offers. This doesn’t generally happen with affiliate marketing. CPA is often considered slightly fly-by-night by internet marketers – but we can blame that squarely on the shoulders of the “black hat” sites. Another little-known fact: There are large, well known brands in the CPA market, and you can find yourself promoting a product with as huge a reputation as Nike. CPA’s shady reputation was directly caused by marketers using truly dishonest and illegal “black hat” techniques. For example, have you ever seen those ads that say: “Make money from home! 1000’s of jobs – with no training and no fee to pay! Visit our link to learn more.” The reader clicks on this link and is taken to a site promising them the sun, moon and stars – but they have to input their name and contact information to get it. Then, when they’ve done this, they’ll see some page saying “Sorry, all our positions are filled for now but we’ll keep your info on file” – or some such excuse. Most times, there never was any job (or even any information) in
the first place. That’s definitely a “black hat” tactic – especially if you’re the guy who set up these bogus landing pages without having even the hint of a job to offer in the first place. Yes, it’s unkind, unethical – and illegal. And that’s precisely the sort of dishonest marketer the Federal Trade Commission (FTC) is trying to protect people from with their new overhauled rules and guidelines.
Pros and Cons
One advantage of signing up with a reputable CPA marketing network like AZN Network or Neverblueads: They’ve already weeded out these fly-bynight advertisers for you. here are advantages and disadvantages to this method of generating passive income – but the benefits can often outweigh the disadvantages. I’ll give you the biggest benefit up front, in the hope it will inspire you to seriously consider this much-neglected form of passive marketing income. Think about it for a moment. You have a list of 100 people. Perhaps only 20 of those people will click on your email link or sign up box. Out of that 20, it’s the norm to get perhaps 1 or 2 sales.
In other words, a 2-4% conversion rate – the 2-4% being the people who actually buy – is considered “good” or “acceptable” in internet marketing. However, if your sign up box or email link led to a CPA ad or site, and 20 people clicked, you would get paid for each and every one of those clicks. Sounds pretty good, doesn’t it?
Types Of CPA Products
You may be surprised at the “mainstream” products CPA networks want you
to promote. These can include:
- Ringtones
- Credit cards
- Mortgages
- Debt Relief
- Insurance
- Anti-Aging Skin Care
- Dating agencies
- Game sites
- Multimedia equipment
- Gift cards
Keys To CPA Success
The biggest problem most new marketers encounter when they try to get into CPA marketing lies in not knowing the 3 most essential steps they have to take:
- Choosing the right CPA network
- Using the right keywords
- Getting past the “no traffic” hurdle
You’ve already been introduced to the strongest reason for going with a CPA network, so let’s look at keyword research. Of course, you already know that strong keyword research is essential in
just about every avenue of internet marketing, and hopefully, you know how to do it.
What Type Of CPA Offers Can I Sign Up For?
If you’re brand new to CPA marketing, it’s important to know exactly what types of offers you can sign up for. There’s a wide variety, and when you read my descriptions, you may instantly realize you absolutely don’t want to get involved with one particular sort – but that a few others are right up
your alley! Knowing what type of offer you’re going to start with will help you focus your
keyword research more. Check out this chart for a quick overview of the types of CPA marketing you
can explore (arranged in order of lowest paying to highest.)
Types of CPA Marketing
Zip Code lead captures
Same as above. Both offer around an average of $1 per lead.
Email lead captures Easiest to get people to do – but it offers one of the lowest payouts – about $1.20.
Lead generation Involves capturing a little more than just an email address – usually first and last name, address, and perhaps even phone number. Payout between $8-20$.
Free Trial offers These are good to find – people like getting something concrete. Often you are paid on sales, however, just like an affiliate. The average payout is anywhere from $20-40
Sales conversions High end products with large commissions, these are basically true affiliate sales. But your payout is most rewarding, if you can generate these – as much as $60-300
Zip Code Lead Captures – A zip code lead capture usually comes in the form of a coupon. The viewer submits their zip code to get information about obtaining the product. The lure will be a free gift card, dinner, iPod – you name it, you’ll probably see it.
Email Lead Captures – Similar to Zip Code Lead Captures – and slightly more hard to convince people to sign up for and complete the form. The key to upping your capture rate is to make sure the email offer is highly targeted to the readers who visit your blog or website.
Lead Generation – Again, the key to capturing these is to make sure you’ve targeted your blog or website to people who won’t mind parting with this information, in order to get what is offered.
Don’t forget you can pre-sell offers too, by writing about them on your blog. Relate a personal incident in which you benefited from information or products such as the one offered, and let your readers know in advance any hidden incentives they’ll be eligible for, with the offer.
Free Trial Offers – These are especially good for niches like skin care, weight loss and natural products. If you have a blog loaded with truly interesting information on this niche, you will have built enough trust for your readers to seriously consider the offer. Your blog will give you a natural avenue to promote the offer – and there’s the incentive of the actual free sample to further encourage readers to click.
Sales Conversions – This type of offer is often combined with lead generation. You capture the person’s information, get paid your tiny commission – but if the person buys, you also get a true sales commission on top of it. If your list is small, do make sure you have a few of these well-researched, well-promoted offers. It’s your best chance of making real money. With “easy” methods like simple zip code or email address capture, the commission is so small you really don’t notice a difference unless you’ve got a huge list.
Don’t be intimidated at the thought of promoting these products and offers – it really is a lot easier than you’d imagine to get this stream of income going; and even though you might have to invest in a chunk of setup time (especially if you’re promoting high end products), once you’ve got
your blog (the vehicle you’re going to promote them on) set up and running.
Where To Get Free CPA Information
A good place to find really blunt, honest feedback is WarriorForum. You don’t have to join – just search for “CPA” in the WF search box. This is the first place I go to, when I want tips on a marketing method or feedback on a software program. I don’t waste time wading my way through blog sites filled with biased “reviews” on Google. And you’ll often find excellent Special Offers targeted for the subject you’re researching.
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