CPA Affiliate Marketing – Commissions Without Selling
The first question that might come to mind is: What is CPA Affiliate Marketing? Its a pretty straightforward concept. CPA Advertising is the abbreviation for “Cost Per Action Advertising”. In this form of advertising, a publisher (or affiliate) receives a commission whenever someone responding to the advertising they have places completes the desired action, which is typically providing some kind of personal data into a registration form. As an example, it might be something as simple as providing their name and email address – or it might be something more involved, perhaps accepting a free trial offer for a product.
Today’s business climate is one of heavy competition, one in which a company must have a lot of advertising exposure to keep up with the competition. For a company to accomplish that, it needs to establish contact with as large a group of potential customers as it possibly can. Once they have created that audience, then they can get down to the business of marketing their products to them.
From the standpoint of a company, CPA advertising is a highly desirable way to market itself. It is very cost-effective, because they only pay for leads that occur when a prospective customer provides some contact information, or interacts with the company’s website in a particular way, thus creating a contact point between the company and the new prospect. Each time a new prospect completes this action, the affiliate who directed them to the page earns a commission.
The business itself must decide what type of action it wants its potential customers to take. The action could, in some instances, be purchasing a trial product or introductory service from the company. More often, it could involve filling in a short form to obtain information about the product or services provided by the company, or just signing up with the company’s website. Based on the action, the advertising costs (or commissions paid to the affiliate) will vary.
Once a CPA campaign is started, the company pays out the specified commission to the advertiser, or the CPA network with which it is working, each time a potential customer clicks on a particular link, and then takes the specific action defined by the specifications of the CPA campaign. In this way, advertising will be directed at attracting a specific kind of attention (and action) from its potential customers. It is not really about whether the customer made a purchase or not, but rather whether the potential customer has interacted with the website. It is really about how much attention the advertiser can garner for your company. Commissions are then paid based on those considerations.
By employing a CPA advertising campaign, a company can create large amounts of traffic to its website, but it will only have to pay a commission when a potential customer takes the desired action while at the website. This is the bright future for Internet affiliate marketing. It gets down to to paying for results, not just traffic – which results are more likely to bring in actual business.
The affiliate participating in a CPA program, sees one major advantage over conventional sales affiliate marketing: In sales, the affiliate doesn’t earn the commission until someone actually spends their money and buys something – (and then they have to worry about the possibility of returns). When an affiliate is running a CPA campaign, however, the barrier to be jumped to earn his or her commission is much lower: the prospect simply has to to be willing to provide the requested information, or download some free software, or accept the free trial offer, and the commission is earned and paid.
To find out more about being a profitable CPA affiliate affiliate, get your copy of the complete guide to CPA affiliate, which includes a ton of affiliate resource links that will help you launch your business quickly. This article, CPA Affiliate Marketing – Commissions Without Selling has free reprint rights.
Filed under Internet Marketing by on Oct 25th, 2010.



