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Newbies Guide To CPA - Everything You Want to Know About CPA

Discussion in 'Affiliate Programs' started by pearlgurl, Dec 11, 2009.

  1. #1
    What Is CPA?

    The phrase “CPA” sounds about as exciting and attention-grabbing as accounting terms would sound to a quilting enthusiast. It’s usually rattled off in this acronym form, and the assumption seems to be that you’ll know what it is.

    Acronyms (short forms based on initials of words in titles) intimidate people, so many new internet marketers tend to ignore or gloss over this marketing method – but “CPA” simply means “Cost Per Action” or “Cost Per Acquisition”.

    Cost Per Action means that your reader just has to take a specific action (E.G. input a valid email address, click on a link, request a free sample, etc.) Cost Per Acquisition means that your reader actually has to buy the product or subscription.

    Websites (or reports like this) dryly talking about CPA can hardly compete with “Make a six figure income with no work – 1 week from now!” in excitement factor. But whether you’re choosing to focus on Cost Per Action or Cost Per Acquisition, CPA marketing has one common denominator: It is a form of advertising generated by a third party in which you are paid for hosting or promoting that party’s ad or link, based strictly on actions your readers take.

    Other terms you may hear: PPC (Pay Per Click) and CPC (Cost Per Click). PPC usually refers to you paying per click – for example, if you’ve bought Google Adwords.

    This in turn generates any of the following actions for the advertiser who is going to pay you:

    • New subscriber sign up
    • Purchase of a product
    • Sales lead for your advertiser’s further follow up
    How much can you earn? Well, typically… not millions. New subscriber signups usually generate between $1.00 to $1.50 per lead. You definitely won’t get rich overnight.

    But if you combine simple Cost Per Action with some well-chosen Cost Per Acquisitions, your payout may be much higher. For example, if you’re promoting a big-ticket item that costs $695, your commission that may be anywhere from $60-$300 on lead that results in a sale. A few of these combined with a bunch of easy “just click” links or banners can make a nice little second income for you.

    And once set up, it’s a painless way to add extra income generation from your already-existing sites. Put CPA to work for you while you go off to the church picnic or enjoy a well-deserved nap (after staying up all the night before, trying to solve your shopping cart problem.) And as your list grows, so too will your profits.

    What Is A `CPA Network’?

    A CPA network is a company that allows advertisers and web publishers (internet marketers) to find each other and connect. In other words, it’s the “dating agency” that pairs you up with your best ad match.

    And as with dating agencies, there are leftover prejudices about CPA networks being risky. The truth is, CPA networks have matured just as many of the bigger and more selective dating agencies (such as eHarmony) have done. Just as you see “real people” committed to values and caring relationships on eHarmony – compared to the sort of dating agency that uses scantily-clad girls speaking lines laced with sleazy innuendo. Most CPA networks are solid and reliable – it’s certain unscrupulous publishers (affiliates) who most often generate the “shady” label.

    In fact, one of the most important functions a CPA network can perform lies in making sure both web publisher (you) and the advertiser are reputable, solid prospects.

    Choose recognized and reputable CPA networks, and use intelligent marketing tactics, and your sites should never have a problem with credibility.

    So far, it sounds remarkably like affiliate marketing, doesn’t it? But there are some vital differences it helps to learn straight away.

    Both rely on internet marketers to promote their products. The biggest different between the two lies in CPA emphasis on its affiliates generating leads, rather than sales. It’s usually less labor-intensive – you don’t have to do the sort of ongoing promotion affiliate marketing needs.

    And in case you’re wondering what I mean by “generating leads”, that means having site visitors act by filling out a form with some sort of personal contact information.

    After that, your part is done – except for collecting your payment! It really is that easy.

    Start simply at first, with email and zip code cost per action ads. As your skills grow, add in cost per acquisition to promote high-ticket items.

    How Does It Work?

    CPA networks can be choosy about who they accept. They want a representative who is going to take aggressive action – and they prefer reps who have substantial lists. This doesn’t sound too promising for a new marketer, but let’s not get ahead of ourselves.

    On the other hand, CPA networks tend to reward affiliates who generate strong results. This can be in the form of prizes, bonuses, cash – and being offered exclusive, highly-converting offers. This doesn’t generally happen with affiliate marketing.

    CPA is often considered slightly fly-by-night by internet marketers – but we can blame that squarely on the shoulders of the “black hat” sites. Another little-known fact: There are large, well known brands in the CPA market, and you can find yourself promoting a product with as huge a reputation as Nike.

    CPA’s shady reputation was directly caused by marketers using truly dishonest and illegal “black hat” techniques. For example, have you ever seen those ads that say: “Make money from home! 1000’s of jobs – with no training and no fee to pay! Visit our link to learn more.”

    The reader clicks on this link and is taken to a site promising them the sun, moon and stars – but they have to input their name and contact information to get it.

    Then, when they’ve done this, they’ll see some page saying “Sorry, all our positions are filled for now but we’ll keep your info on file” – or some such excuse. Most times, there never was any job (or even any information) in the first place. That’s definitely a “black hat” tactic – especially if you’re the guy who set up these bogus landing pages without having even the hint of a job to offer in the first place.

    Pros and Cons


    One advantage of signing up with a reputable CPA marketing network like AZN Network or Neverblueads: They’ve already weeded out these fly-bynight advertisers for you.

    There are advantages and disadvantages to this method of generating passive income – but the benefits can often outweigh the disadvantages. I’ll give you the biggest benefit up front, in the hope it will inspire you to seriously consider this much-neglected form of passive marketing income.

    Think about it for a moment. You have a list of 100 people. Perhaps only 20 of those people will click on your email link or sign up box. Out of that 20, it’s the norm to get perhaps 1 or 2 sales.

    In other words, a 2-4% conversion rate – the 2-4% being the people who actually buy – is considered “good” or “acceptable” in internet marketing.

    However, if your sign up box or email link led to a CPA ad or site, and 20 people clicked, you would get paid for each and every one of those clicks.

    Types Of CPA Products

    You may be surprised at the “mainstream” products CPA networks want you
    to promote. These can include:
    • Ringtones
    • Credit cards
    • Mortgages
    • Debt Relief
    • Insurance
    • Anti-Aging Skin Care
    • Dating agencies
    • Game sites
    • Multimedia equipment
    • Gift cards

    Keys To CPA Success

    The biggest problem most new marketers encounter when they try to get into CPA marketing lies in not knowing the 3 most essential steps they have to take:

    • Choosing the right CPA network
    • Using the right keywords
    • Getting past the “no traffic” hurdle

    You’ve already been introduced to the strongest reason for going with a CPA network, so let’s look at keyword research.

    Of course, you already know that strong keyword research is essential in just about every avenue of internet marketing, and hopefully, you know how to do it.

    Feel Free to Ask the Questions!
     
    pearlgurl, Dec 11, 2009 IP
    DMK likes this.
  2. rok3r

    rok3r Peon

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    #2
    good stuff
     
    rok3r, Dec 14, 2009 IP
  3. qwertystfu

    qwertystfu Peon

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    #3
    Thanks for the share man. :)
     
    qwertystfu, Dec 14, 2009 IP
  4. jrbaiw

    jrbaiw Peon

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    #4
    Some good info in that lot. Thanks.
     
    jrbaiw, Dec 15, 2009 IP