What is the difference between a CPA and a regular affiliate? The most apparent difference is that CPA is an affiliate program run through a third party network rather than through the merchant. In other words, CPA stands for Cost Per Action. In other words, that means CPA affiliates earn money for bringing customers to the merchants websites. Whereas a standard affiliate program such as Amazon Associates only caters to sales, CPA-based affiliates get paid for performing actions such as form submissions and product downloads.
The affiliate network is responsible for creating a commission income for the affiliate marketers. They are rewarded by a certain percentage of the cost per acquisition marketing spend by the merchants they refer to. This is referred to as the “cost per sale” or “pay per lead” revenue sharing. The more affiliates a website attracts, the greater the affiliate network can generate revenues for the merchant. And the larger the number of merchants and their products, the higher the potential earnings potential for the affiliate network.
So how much money can one make from CPA marketing? There are no limits to the amount of money that any affiliate can earn because this is a real business, not just a “get rich quick” scheme. You can start with a small budget and work your way up, spending less and earning more every month. The key is to spend less on advertising and more on generating targeted traffic and building customer relationships.
One common mistake among new CPA affiliates is focusing primarily on advertising programs related to their niche. This can be counterproductive. The affiliate may build up a substantial list of potential buyers but unless those people know and trust the information the affiliate provides, chances are they won’t click through to the advertiser’s site. For example, if the affiliate markets products related to pets, then he likely will promote products related to pet food, toys, and dog clothing. If those products aren’t relevant to his prospects, then no matter how many sales he is making, the affiliate isn’t earning the amount of money he could be.
The first rule for new affiliates is to learn what types of advertisers are paying top dollars for leads. Two good sources to learn about this are clickbooth and commission Junction. These sites offer CPA affiliate’s a wealth of information including which ads are bringing in the most money. They also have weekly payouts and other tools to help you improve your advertising performance.
When starting out, it’s important to join several affiliate networks. At first, you’ll have to establish your credibility as an authority within your chosen niche. Then, you can decide which publishers to promote to and which ones to exclude. Some publishers offer the ability to create groups, which is an ideal way to get more exposure for your site.
In order to encourage new affiliates to promote their websites through their sites, advertisers often offer a one-week trial period. During this time, advertisers provide a special introductory price for subscribers. This price can often make new affiliates curious about joining the network. If they are able to make regular weekly payments and keep their urls active, then they may be more inclined to stick with the URL that they have been offered instead of a competitor’s URL.
The best networks have a wide variety of advertisers. Some specialize in digital products such as eBooks, video tutorials, and other instruction materials. Other verticals include financial services, real estate, and home repair. These types of programs pay lower than others, but don’t have the immediate competition that some other verticals experience. If your CPA offers these kinds of programs, you’re in good shape to start generating CPA offers and payments quickly and easily.