Introduction To CPA

CPA or Cost Per Action is an online business model and simply involves connecting potential customers with big companies selling a product or a service. These companies, also referred to as advertisers,  are willing to pay you as the CPA affiliate for performing a specific action completed by the consumer.

Advertisers will pay you every time a consumer gives information pertaining to their campaign or offer. The actions required vary and can range from a simple email submit to more complex forms that require more information from the user.

Advertisers determine the desired action to be performed by the potential client, some common actions are when a visitor:

• submits an email address
• submits a zip code
• opts in for a free trial
• signs up for a subscription
• clicks on a banner
• clicks on a text link
• downloads software
• enters a cell phone number

The more actions required by the user usually equates to a higher potential to earn, for example, you may be paid $1.50 for every email submit or you could earn $30 or more  for the same visitor who signs up for a free trial offer.

The companies are generally  multi-million dollar companies who can afford to  spend thousands of dollars advertising in CPA advertising. The companies make use CPA affiliate networks to act as the middle man between you and the companies themselves.

As we have gathered so far, CPA involves three players:

• the affiliates
• the advertisers
• the CPA networks

The CPA Affiliate

The CPA affiliates are those  promoting the offers in the CPA Networks, they are typically website owners in a specific market or niche.  Affiliates are approved by the CPA Networks according to an often overly strict criteria. The networks will often accept an affiliate based on internet marketing background and experience.

The Advertiser

The advertiser are the companies giving the affiliates the offers to promote. Advertisers provide the affiliate with creatives as tools to promote the offers such as banners of different sizes, email and newsletter templates, text links and  landing pages. Most advertisers require the affiliates to use the creatives as is, modifying or changing them is not permitted.

The CPA Network

The CPA networks are the companies acting as the middle man between the affiliate and the advertiser.  The networks provide the affiliates with the creatives from the advertiser and they also provide extra tools such as tracking services and statistics, but most importantly the networks process and pay affiliate commissions. Probably the most valued resource to the affiliate is the Affiliate Manager that the networks make available, they are there to attend to affiliate inquiries and assist in the overall business activities.

This is a brief introduction to CPA marketing and only cover the very basics. In my next blog post I will talking about why CPA is so popular and why it is one of the best channels to explore if you are interested in generating an extra stream of income.

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