What is CPA?
CPA network is a platform that brings together advertisers and affiliate marketers. CPA is short for cost per action, which means “payment for action”. On such platforms, each participant receives their own benefit: advertisers find clients and the opportunity to sell their product while affiliate marketers get paid for the user’s target action.
The following actions can be paid:
# App download;
# Registration;
# Purchase;
# Call;
# Click-through;
# Taking a survey.
How do Platforms Work?
Affiliate marketers advertise the company’s products and attract customers. They receive a fixed payment or a percentage of the product sales for a specific customer action. The more transactions they carry out, the higher their payment will be. With the help of the CPA network, the advertiser publishes their offers, and the affiliate marketer chooses the most suitable one and sends traffic to it.
The advertiser indicates how much they are willing to pay and for what action, which advertising channels cannot be used, and sometimes offers promotional materials. The affiliate marketer publishes links on their platforms, visitors click through them and perform the targeted action. The system registers actions and assigns users to the affiliate marketer. CPA networks transmit statistics for each agent to the advertiser, and after the results are approved, CPA affiliate programs pay part of the commission to the affiliate marketer.
What are the Advantages and Disadvantages?
Cost per action is the best model for advertisers. It is more effective than cost per click. And all because the budget is spent on potential customers. The commodity affiliate program allows you to avoid fraud, which also happens in affiliate marketing. The benefits of CPA networks for advertisers include:
1. Fixed cost. Allows you to plan your marketing budget.
2. Low conversion cost. Compared to using SEO or contextual advertising.
3. Simplified search for thematic sites.
4. No need to pay each site owner.
But in any business there are drawbacks, and for the advertiser these are:
1. Difficulty in finding partners. In CPA marketing, the company that pays consistently and a lot usually “wins”.
2. Competition. Due to the fact that there are a lot of players, you have to somehow get ahead of them and raise payments to affiliates.
2. Fraud that a company of any size can face. Unscrupulous affiliate marketers attract inappropriate traffic using prohibited methods.
For affiliate marketers, working with CPA networks has its advantages:
# No need to look for partners on your own;
# Ability to receive passive income, having a website of any subject;
# High protection against fraudsters, which the CPA network carefully checks;
# Opportunity to enter into long-term cooperation.
The disadvantages of CPA networks for affiliate marketers include:
# It takes a long time to check leads;
# You need to invest your money to purchase traffic;
# Some leads may not be counted for technical reasons.
How to Choose an Offer?
An offer is an offer to pay for a specific user action, which is paid by the advertiser. The success depends on the correct choice of the offer, so you need to approach it with all responsibility.
For beginners, the ideal option would be to search for offers with minimal traffic requirements and a simple targeted action for users – registering or sending an application. If you choose a CPA network commodity, preference should be given to those that are popular or are just gaining popularity. Usually, CPA networks offer a catalog of offers, so you do not have to look at various monitoring services. Although it will not be superfluous, for example, to look at the TOP-5 offers of the week. Do not get hung up on this stage, choose what is closer to you.
How to Attract New Customers?
It is risky to promote a product on your own – advertising may not pay off. Therefore, the majority chooses to work with CPA networks. Affiliate marketers use various formats to promote products and services: teasers, banners, pop-ups, click-unders. It is up to the affiliate marketer to decide which format is appropriate for a particular offer. The CPA model is suitable for any business, both offline and online. But it is worth considering your nuances. For example, if you promote a company offline, the time from the first contact with the customer and the final result is longer than online.
CPA networks have become an additional source of income and traffic for many. The main thing is to find the right approach to work, consult with network managers and analyze advertising campaigns. If you work for results, profit growth will not keep you waiting!
