First, if this is the wrong place excuse me, kindly contact me and I will edit/delete/change accordingly. My question: I've noticed CPA has became a huge hit, and affiliates/marketers will gladly and quickly run cpa campaigns on their website... Although this is a lucrative opportunity for many, there are much better ways to produce income. Why exactly run CPA campaigns?
Honestly it's because a CPA campaign is easier for some. Let's use me for example. When I started out I could get leads. WOOOO man could I get leads, I had alot of traffic but absolutely NO follow through. So I was able to get paid for producing leads and then as I grew in this world I learned how to incorporate everything and get the follow through. So now not only am I making sales but I'm getting paid for leads. There's alot more to my personal online income but that's basically how I started.
That makes sense... to play the advocate here... I then wonder... If one can create these leads, why not create for thy self, keep the leads and market your products/services OR...sell the lead directly to companies both large and small purchasing? Take for example... you're creating insurance leads... call or have callers call up the insurance companies in which fits the lead and offer your services. Trial basis to prove the leads...close? It's more money than CPA is willing to give. But then another look... creating these leads why not market them something that creates passive income? Get paid for the lead, make the sale and have passive income!? I guess I still don't understand the hype about CPA companies other than... solely driven on a money factor...but there's so many better ways to produce money.
SeedSown, you have a good point there. HOWEVER, you need to be a known entity first who can reliably produce traffic/leads on demand before you'll get any insurance companies willing to deal with you. CPA is a great starting point when you're only making five figures or less a month because it removes a lot of the hassle of trying to market yourself and your services to companies that need these leads. This is simply not feasible for someone just starting out with no track record of success or traffic generation. When these companies sign up for leads, they literally want thousands of them FAST. Unless you have a huge budget and/or are outsourcing your traffic generation extensively, they won't even want to deal with a small-timer individually. Additionally, if we analyze your other angle of marketing your own products or services, then you had better be prepared to do LOTS of testing for conversion purposes, shell out thousands of dollars for graphics/sales letters that have a high conversion rate, etc. This is not a trivial endeavor, and you will only get paid when a sale is made, so there is a fairly significant amount of risk involved if you were to do it all by yourself. Dealing with a CPA company removes a lot of that risk. Even though you'll get paid less, you'll nevertheless be compensated for each lead (and not sale) that you generate. It is obviously a lot cheaper and easier to generate a lead vs. a sale, so therein lies a lot of the appeal of CPA marketing.
CPA Campaigns as it also stands for "Cost Per Action", it only states that you would be rewarded for every action taken by viewers & not by the number of times the webpage is viewed. So if you're going to be driving traffic to a particular landing webpage of advertisers, you'll also be getting website viewers to participate online as they execute definite actions required by advertisers. The simplest way to be a CPA marketing person, or else called an affiliate or publisher, is by joining CPA networks. Otherwise, to be an affiliates and run this campaign progressively, it's true that you have to be "capable" to have generated traffic beforehand to get ahead of competition. To generate more results though, I do recommend outsourcing your traffic needs before proceeding into campaign.
I understand what you all are saying... here is what I am scratching my head about. 1- if I am driving traffic to anything, why not put myself in a position to be paid multiple times for one order?